You always hear about the age old debate of whether one should lease a vehicle or buy outright/finance when shopping for a new set of wheels. The Applewood Auto Group has come up with a top 10 list of reasons exactly why the latter is a good move for some.
1) Use it and lose it
A car is a piece of machinery. It is simply a piece of equipment used to get where you want to go. There is no valid reason to own a car, the thing you want to do is simply use it and then get rid of it.
2) Control of cost
With leasing, you are able to control the cost of your usage based on time and distance. By leasing, you can get in and out of a car limited to how much you use it. Those that put high mileage on a car, contrary to popular belief, should lease as the user can exact the cost of usage.
3) Better deals
The deals are almost always better on leases. The way to get the best deal on a car is to work the manufacturer, not the dealer. Tax savings also allow the deals to be better. By paying tax on the lease payments monthly you are saving yourself a lot of tax money. If you buy the vehicle and finance it you will pay full tax on the car and then pay interest on that tax.
4) Lease depreciating assets, don’t own them
There is no reason to own a car or anything for that matter when you know it’s going to go down in value. The argument against this is when you lease you will have a payment forever. That’s right, and when you own you have payments that are unpredictable. The perfect lease would be 24-36 months — shorter the better — and get out before there are issues not covered by warranty and before models change.
5) The lease agreement protects you against future loss
A lease is like putting a stop on a stock or getting life insurance. The lease protects you from the downside of eroding market conditions. If the future value of the car were to depreciate more than anticipated because of new models, abundant inventories, or a failed economy you are protected against future downside with a lease.
6) Don’t believe the fantasy of ownership
Pay to use the car, not for some fantasy of ownership. There is no reason to pay for the future value of the car. You are paying to use a car not for its value in the future.
7) Never worry about selling or trading your car in
At the end of the lease cycle, you simply turn the vehicle in. The dealer will take a report of its condition and as long as there is no damage or excessive wear and tear or mileage you are done with it.
8) Better Protection
In all leasing there is built-in gap insurance that will limit or complete remove you from responsibility of a shortfall in the event of a complete write-off.
9) Stay dynamic
Get in and out quicker for less money down and a lower cost per month. Traditionally you can get into leases for less money down and less monthly cost.
10) Leasing is easier and quicker
Because the manufacturer believes that leasing makes for the possibility of renewing a customer on a receptive loyalty program (repetitive purchases), they make everything easier and quicker. And the dealer loves to lease again for the same reasons.