The Advantages Of Leasing Over Buying
Tax Deductions: Provided you are the owner of your business or plan to use the vehicle in the carrying out of business tasks, you will be able to deduct the full amount of lease payments made. This can be done up to the actual percentage of time the car or truck is used for business purposes.
This often represents a very significant savings at year or quarter’s end, particularly when you factor in insurance, fuel and maintenance expenses as well. A purchased vehicle only permits you to deduct depreciation amounts in line with the percentage of actual business usage. There really is no reason to pay the government more in taxes than you need to!
Reduced Payment Amounts: For most individuals, auto leasing offers lower payment obligations each month than if the car were purchased. That makes it easier to drive a far more luxurious vehicle by leasing than if you were to buy the same car. Doesn’t it make sense to get more for your money?
Lower Start-Up Costs: In many cases, leasing does not require much at all in the way of down payments. This allows you to get into the driver’s seat with a very small cash outlay. You can keep money available for other expenses, or if you decide to make a down payment, your monthly payments can be even lower.
Additional Tax Benefits: With the exception of certain states, there is no sales tax charged on the vehicle’s value when a lease is begun. You will only need to pay tax on the part of the car’s value included in your lease term. Taxes will be spread across all lease payments instead of falling due all at the same time.
Lower Maintenance Costs: Lease customers usually sign contracts for terms roughly equal in length to the car maker’s own warranty period. That way, if major issues arise with the car during the lease, repairs will be paid for by the manufacturer.
No Resale Headaches: When a car is leased there is no worry about having to resell the vehicle when it comes time to get a new one. At the end of the lease, just turn it back into the dealer and decide your next move. Of course, you always have the option of purchasing the vehicle you have been leasing if you decide you love it.
Numerous Options: When a car is purchased, loans tend to run between five and six years. This serves to encumber lots of capital in an asset that depreciates rapidly. By contrast auto leasing gets you into a favorable cycle while keeping cash liquid. It is easy to get new, exciting vehicles more often instead of being stuck with something that feels old.
Included Gap Coverage: Each of our lease programs that are “closed end” in nature include all-important gap coverage at no additional cost. Thus, you will not be liable for the difference between amount still owed on the car and your insurance payout if the car happens to be totaled or stolen. This can make a big difference to your bottom line if the unexpected unfortunately occurs.