Benefits of leasing
|
|
|
|
|
|
|
|
|
Written by Chad Cook
|
|
Wednesday, 07 June 2006 |
|
Despite aggressive low-interest financing, money-back offers and other
purchasing incentives offered by leading auto-makers to buyers, leasing
numbers keep increasing steadily over the last several years. Leasing is not just an appealing financial proposition to most auto-consumers, but also a
lifestyle and choice selection.
Benefit Number 1: Keeping up with the latest trends
Leasing is at times more of an individual and lifestyle choice than a
financial one. A number of men and women are not comfortable with the idea of owning a vehicle over a long extensive period of time. They'd more or less keep up with the latest trends of the industry and drive the fashionable models every two to three years.
Leasing a car gives you the convenience of having the current technology
and safety innovation, such as an electronic stability system, DVD
entertainment systems and advanced stereo equipment. If you are willing to
forego ownership for the latest set of wheels, than leasing is your best
option.
Benefit Number 2: Purchasing Flexibility
Leasing also offers purchasing flexibility: it allows you to decide the
purchasing decision while using the car. You don't have to bicker with your
mechanic over repair expenses, deal with hefty upkeep bills or worry
about a depreciating asset. Provided you can retain the vehicle in good
state and remain within the contracted mileage allowance, you're
generally getting a test drive for the span of your lease. At the end of your lease, you can purchase the vehicle or merely turn in the keys and step away. No questions asked.
Benefit Number 3: Cash Flow
Leasing offers many short-term benefits. It reduces your original cash
outlay as you do not have to pay the large down payment necessary for car
ownership. You only pay for the depreciation on the car - only the part you
will likely use during your lease, not the entire vehicle. This results in lower
monthly payments and frees even more currency. This cash can be put to use more
intelligently elsewhere than the questionable investment of owning a
depreciating asset. If you are self-employed or use your car for your job,
then you can write off your leasing payment as a business expense.
Benefit Number 4: Negotiating Leverage
Although it may appear a tiny bit unusual in this industry, almost
everything about leasing is negotiable. If you know all the fees implicated,
you can lower your monthly payments, negotiate the purchase fee of the
vehicle at the end of the lease and contract additional miles on top of
your mileage limit. You can also do some shopping everywhere and compare deals
from different auto-insurers to get the cheapest GAP cover for your
lease.
|
