Benefits of Leasing a Car

Leasing has many benefits, such as financing the entire amount of the loan, which means no down payment, and the payments are often less than they would be if you were purchasing a vehicle, because you are only paying to use the vehicle for a specified amount of time, rather than buying the vehicle so the cost is less. Some leasing companies will require you to make the first lease payment up front, and some will offer car leasing deals in which you can have the vehicle for one month or more before making your first payment. It all depends on the incentives at the time, but one expense you will likely need to pay upfront is license and registration fees.

You will receive low, easy to handle monthly (or bi-weekly) payments that won’t affect your borrowing power. Leasing can sometimes be considered an operating expense, which means you can often write off a portion of your lease payments when you do your income tax. Leasing also offers flexible financing as you can customize your payment schedule, length of the lease and the terms to match your cash flow. You will also be able to upgrade to a new model with the same (or more advanced) equipment for little or no difference in the amount of your monthly payments when your lease is up.

You will likely be able to afford a more expensive vehicle if you lease rather than if you buy, because with a lease you’re only paying to cover a portion of the cost of the vehicle, rather than paying to own the whole thing. One of the cons when it comes to leasing is that you will need to pay for any repairs needed at the end of the lease to make it suitable for reselling. Normal wear and tear is fine, but any excessive damage will have to be taken care of out of your pocket. The same goes for excess kilometers. When you lease a vehicle there is a set amount of kilometers you are allowed to use over the course of your lease. If you know you are going to use more or less kilometers you can go for a low kilometer car leasing deal (which will lower your payments and up your residual) or you can go for a high kilometer lease which will cost a bit more and make your residual a little less.

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