Benefits of Car Leasing Explained
If you’re one of those thinking to try car leasing, below are some of the best benefits that you should consider before you make a decision.
The ability to drive a brand-new car
Car leasing enables people to have a brand-new car or the latest car model in their garage. Leasing comes with a lot of great benefits and one of these is the opportunity to drive the latest, hottest, and trendiest cars in the market. You might find it imprudent but it’s often a lifestyle of business option instead of a financial one. The drivers of these cars also get to enjoy the latest in safety technology. The latest cars also have the latest on comfort features. You have to be aware that technology is much faster to advance than the usual car-loan term.
You can also expect to receive fewer repair bills when you drive the latest car model. If you’re leasing since you don’t want to end up negotiating with a mechanic make sure that the lease term is equal or shorter than the warranty of the car.
Leases seem to be more attractive to people since they can have the cars they like with only lower monthly payments. How’s this possible? It’s because lessees pay only for the car’s depreciation and not the entire car. What they’re doing is that they’re renting the car for the entire lease term.
Leasing may also reduce your cash outlay. This allows the lessee to make better use of the cash instead of investing it in car ownership because cars are depreciating assets. There are also other advantages in car leasing. When you use the leased car for doing your job, leasing payments can be considered as business expense on tax returns. Lease obligations don’t appear as debt on a credit report as well. This can be important to companies that have to buy multiple cars for the company to use.
The car makers also offer leasing incentives and also huge cash back offers to those who buy. This is called the lease subvention incentive wherein the carmaker subsidizes the consumer for them to move slow-selling units.