Advantage of Leasing a Car

Most of you would love to drive a new car after every 2-3 years. But some of you would love to drive their first car until the wheels fall off. These people are emotionally attached to their vehicle and don't mind paying the auto loans for long years. The concept of leasing a car began with the use of cars for business purpose, but today many individuals are opting for it. If you are amongst those who wish to change their cars after every few years then leasing a car is the best option you can look at. There are many advantages of leasing a car over buying one. So if you are confused over the decision, here are the details of advantage of leasing a car.

What does Leasing a Car Mean?

Basically when you lease a car, you do not own it. While leasing a car you have to sign a lease agreement in which the details of monthly payments and duration of lease is mentioned. Monthly payment is to be done to the leasing car dealer in exchange for the use of their car. The lease amount is usually calculated to cover only the estimated amount of depreciation in the given duration, plus the interest. So unlike buying a car, you pay just for what you use and not the entire selling price of the vehicle.

What is the Advantage of Leasing a Car?

Advantage of Leasing a Car # 1: One of the prime reasons that an individual opts for leasing a car is the satisfaction of driving a new car every 2-3 years. If you own a car, it will become an old one after 2-3 years, and you would still need to continue driving it just because you own it. This is not the case with a leased car, where you get a great change after the lease period is over. Also, if you have a business and you use the vehicle just for business purpose, leasing is a great option.

Advantage of Leasing a Car # 2: The amount of leasing a car is anytime lesser than buying one. You have to pay 'up front' an amount equal to three monthly payments. This amount is lower than the down payment, while buying a car. Sometimes you don't even need to pay this amount, you just need to pay the monthly installments. The monthly installments will be lesser than the amount of the monthly installment of the car loan. Some of the leasing companies also give you the option to 'trade in' your old vehicle and lower the monthly payments. You are supposed to mention the expected annual mileage, higher the mileage more is the amount you need to pay as monthly installments. Remember, if you exceed the mileage you have to pay the penalty charges. Read more on lease a car with no money down.

Advantage of Leasing a Car # 3: The tax advantage of leasing a car is that you don't have to pay sales tax on the entire value of this leased vehicle, as you would do if you purchased it. You are supposed to pay the tax only on the portion of the value that you use during the lease period. The tax is usually included in the monthly payment of the lease.

Advantage of Leasing a Car # 4: Most of the time, you would return the leased car to the company before the manufacturer's warranty expires. So, this means that some of the expensive repairs of the car, such as installing a new transmission, etc. are not considered. This is the reason why most people opt to lease a vehicle for a term which coincides with the duration of the warranty coverage given by the manufacturer. So if some problems arise in the car, the repairs will be covered.

Advantage of Leasing a Car # 5: One of the best advantage of leasing a car is that you don't have to face the problem of selling this used car. If you own a car, there is always a headache of re-selling it, but in case of a lease, you have to return the car to the dealer at the end of lease period. Moreover, some dealers also give you the option of buying this leased car after the lease period is over, so if you have started enjoying the ride in this car, you can think about this alternative too.

Advantage of Leasing a Car # 6: If you are the one who loves to go with the latest trends, then leasing a car is the best option for you. You can lease a new type and brand of car each time and have a new driving experience every time, instead of driving the same car for years. So you can lease the latest car in the market, which you can't afford to buy. Isn't it fun!

Read more on :

• Lease a Car With Bad Credit
• Lease Contract with Option to Buy

Well, if you have decided to lease a car, remember that its the dealer's car, and hence, maintaining it properly is very essential. If you fail to keep it in good condition you will have to pay for the damages. Also, if you are not sure that you would be able to keep the vehicle for entire term of lease then better opt for car buying. Early termination of lease contract is expensive and your credit might be ruined. After you go through each advantage of leasing a car you might easily decide to lease, but also remember to consider your needs.