Making the decision to lease a cars instead of purchasing one can be a tough one if you are not sure about your options.
You can find some amazing lease deals at http://www.leaseloco.com and all you need to know about what you need to qualify to be able to lease a car.
Here are the top 3 reasons why leasing beats buying:
3 Reasons Leasing Is Better Than Buying Cars
No need to worry about depreciation
Driving a leased car means that you do not have to worry about it losing its value because it does not belong to you so when you return it after using it for three years you haven’t lost any money as you simply return it and lease another brand new car.
It is important to note new cars do lose most of their value within the first three years so this doesn’t result in you losing any money despite having driven the car during the time period.
Don’t have to worry about driving second hand cars
Typically all leased cars are new models, if they have been leased before they have been maintained and serviced regularly so it’s practically as good as new.
You are also more likely to be able to lease a new range car then you would be able to purchase it which makes leasing an ideal option.
You get to drive the car of your dreams, pay monthly instalments that are easy to come by and switch to a much newer model once your lease agreement ends.
Driving a newer model car is also much cheaper as they are made to be fuel efficient and come with a quality maintenance package which only leaves room for the basic wear-and-tear which might only kick-in after your three years are up.
You can save on tax
If you are using the leased car for business trips you can qualify to have tax written off. This allows you to have 100% of your tax written off. For these perks, you’ll need to commit to a standard lease. No tax deduction is available for monthly lease payments made under a lease-to-own agreement, in which the lessee acquires ownership of the vehicle at the end of the lease term rather than returning it to the dealer.
This all depends on the type of car you are leasing, a luxury car can write off a lower amount of tax.
Other added reasons to lease a car instead of buying includes:
- No added expenses after the lease agreement is finalised
The only expenses that you have are the monthly payments and small wear-and-tear that might not be covered by the maintenance package.
- Lease payments are much lower than paying back a loan
The monthly payments on a lease is much cheaper than paying back a loan taken out to purchase a car.
You can also decide how much you are wanting to pay, by setting the lease agreement to the maximum or minimum amount of years.
Keep in mind that the less time you choose to lease a car for the more the monthly payments will be, so taking the standard three to four months is your best option to save on costs.
- You don’t have to worry about finding a buyer for your car
Once your lease is done, there is no need to find a buyer once you have decided that you want to drive a different car.
Simply take it back and find the next car you want to drive.
- Adds to your credit score rating
Leasing a car means having to make monthly scheduled payments which is a positive on your credit score rating as it shows lenders that you are able to make commitments and are not a credit risk.
This will improve your rating and possibly allow you to lease more than one car if needed.
- You are able to negotiate your lease agreement contract
You can compare prices and negotiate terms in your contract such as the maintenance package, how long you want to have the car lease for, your initial payment as well as your mileage limits to avoid any penalties once the contract ends.
Conclusion
Leasing has many perks, from getting a tax cut to not paying for any maintenance. You can compare deals to find the best lease deal and have the option of driving a new car every three years.
This brings an opportunity for you to drive brand new cars without having to purchase them after your lease contract agreement expires. It can also help improve your credit rating which can benefit you for much bigger purchases in the future.
Be sure to negotiate the contract that you want and enjoy the freedom leasing a car brings.
