The concept of leasing a car is becoming popular as it allows you to drive a car without buying it and simply by paying monthly payments for the time you use the car. Leasing a car has its own benefits, but ultimately it depends on your budget and personal preferences too. If you plan to lease a car, read on below to know when is car leasing a good idea.
Lower monthly payments
The payments for leasing a car are significantly lower than the monthly loan payments you would make if you were purchasing the same car. Some dealers also require a down payment, which means higher the down payment lower your lease payment, but this will be profitable only when you will buy the car after the lease expires.
Fixed monthly payments
Leasing a car for a specific period of time means making fixed monthly payments determined, taking into account the depreciation during the lease term. Also included are the cost of financing the transaction and expected mileage and the value of the vehicle at the end of the lease. The monthly payments do not change during the lease term, which is one of the best benefits of leasing.
Lower down payments
Leasing usually does not require down payments compared to when you buy a car on loan there are large down payments that need to be paid. This is when car leasing becomes a good idea, as most leases require very little down payments in some cases.
Drive a new car every few years
If you are someone who likes driving new cars, leasing is a good idea. After the lease ends, you can return it back and go for a new model equipped with new technology, comfort, and safety features.
Low maintenance and repairs
With a new car, most of the repairs and maintenance are covered in the warranty for at least three years. Leasing a car in its trouble-free years, is one of the reasons for when is car leasing a good idea? Drive the car without incurring any large and unexpected repair expenses, except for paying for fuel and regular upkeep.
Leasing a car also gives you tax benefits as the Internal Revenue Service, U.S government agency, allows the deduction of depreciation and financing costs from the monthly payments as a business expense. If you are a working professional, you might be eligible for tax deductions covering work-related trips.
No hassles for resale
After the end of the lease, you can return the car or lease another vehicle. You are saved from the hassle of finding a buyer and getting a fair trade-in value when you own the car. You also have the option to buy the car at the end of the lease term for a price agreed at the time of entering the deal.
The above compelling reasons for when is car leasing a good idea are worth considering when you are planning to lease a car. Leasing is a great way to drive an expensive vehicle when you cannot afford to buy it.