For a long time, we have all been wired to believe that buying a house is more convenient than renting. The same may also apply to a car. Many reasons support purchasing a car but have you ever considered the advantages of leasing over buying? Here are some of them.
Reasons why Leasing is Better than Buying a Car
To begin with, one needs not plan a long-term devotion. Many leases have 24, 36, 48 and 60-month terms. You do not have to get stuck with a car that you do not like forever. Leasing also favors those who do not like long-term commitments.
Moreover, there is no need to cater for significant repairs. Buying a car means you have to personally foot the maintenance and repair costs and sad enough you might end up stuck with a faulty vehicle. Leasing lasts a few months, and most leased cars are relatively new and therefore fall under the warranty of the manufacturer.
Furthermore, the monthly payments will be cheaper. When leasing a vehicle, you do not have to pay the whole price of the car. You only need to pay the depreciation cost and an additional small fee. Leases also require only a tiny down payment than when buying a car.
Leasing also gives you a chance to dodge dealership. When heading to a dealership, you may be presented with inappropriate information that might be a bit confusing. Leasing allows you to avoid dealership and only deal with brokers who are trained to help with the leasing procedure.
Also, there are no resell hassles. Once your leased term is over, you just return the car to the dealer. There is no need to get worried about finding a new buyer and meeting up with strangers handling somewhat tedious craigslist inquiries. There are few precautions here though. If you do a lot of driving and is likely to subject the car to a lot of wear and tear, you might just as well buy a car. This consideration is because the mileage and wear and tear expenses will be included in the monthly fee. This can be particularly useful for Uber car hire as some jobs like this can be temporary
Last but not least, it is possible to enjoy many tax write-offs that include a portion of depreciation if you utilize the car for business purposes. These deductions are not available to people who buy a car on loan.
Terms of Leasing a Car
Before leasing a car, you need to acquaint yourself with the terms used when renting a car. We have words like, depreciation which constitutes the most significant part of a lease payment. Typically, the value of a car depreciates by 50% over a 3-year period. Other terms include Capitalized cost, capitalized cost reduction, Adjusted Capitalized Cost, acquisition fee, just to name but a few.
In a nutshell, leasing a car is by far the most advantageous way of getting you a car. You can also read this guide to get the best tips on where, how and additional information on car leasing.