Advantages of Leasing a Car

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What is good about leasing a car?

The amount of consumers leasing instead of buying has increased over the years despite low-interest financing, cash-back offers, minimum trade-in values and other incentives offered by auto-makers and dealers on new car purchases. Taking advantage of leasing a car is not only appealing for your bottom line, but you may find that it turns into a lifestyle and personal choice in the future.

Benefit of Leasing Number 1: Keep Up With The Latest Trends 

Many times, leasing is more of a personal and lifestyle choice than a financial one. A lot of people are not at ease with the thought of owning a vehicle over a long time period. They would rather keep up with the latest industry trends and drive the newest models every two to three years.

Leasing a car affords you the convenience of having cutting-edge technology and safety innovation, such as an electronic stability system, DVD entertainment systems and hi-tech stereo equipment. If you are willing to forego ownership for the latest set of wheels, than leasing a car is your best choice.

Research before you sign on the dotted line

Remember to research your options before you sign any kind of contract. Educated consumers save a lot of money. Dealer secrets

Leasing Benefit Number 2: Purchasing Flexibility 

Leasing also offers purchasing flexibility: it leaves you to postpone the buying decision while using the car. There is no more haggling with your mechanic over repair expenses, dealing with maintenance costs, or worrying about an asset that depreciates at least $1,000 the minute you drive it off of the lot. You are pretty much getting to test drive the vehicle for the length of the lease provided you are able to keep the vehicle in good condition and stay within the contracted mileage allowance. At the end of your lease, you are granted the option to purchase the car or hand over the keys and walk away. No questions asked.

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Leasing Benefit Number 3: Better Cash Flow 

Leasing a car offers numerous short-term benefits. Since you do not have to pay the large down-payment required when purchasing a car, your initial cash outlay is reduced. You are only paying for the depreciation on the car used during your lease, not the entire value of the vehicle. The result is lower monthly payments and more spending cash for yourself for the term of the lease. You then put your freed up cash to better use than owning an asset that is depreciating by the day. If you are self-employed or use your car for your job your lease payment can be written off as a business expense.

Do you think leasing is a great deal? 

Is leasing a car instead of buying a great deal?

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Leasing Benefit Number 4: Negotiating Leverage 

Many consumers do not know that everything is negotiable when leasing a car. If you know all the fees involved, you can lower your monthly payments, negotiate the purchase price of the vehicle at the end of the lease and contract additional miles on top of your mileage limit.

Shop around and compare deals from different insurance companies to get the cheapest GAP insurance for your auto lease. Many leases include GAP insurance in the cost of your lease, but not all. If it's not included see if you can negotiate this into your lease terms.

Leasing Benefit Number 5: Lower Sales Taxes 

In many states, you don't have to pay the full sales tax on the vehicle in a lease agreement because you aren't paying for the entire value of the car. You would only face taxation on the portion of the vehicle you use during your lease or the amount of cash you will pay during the terms of your lease. The entire sales tax is divided over the term of the lease, so your taxes are paid monthly instead of all up front. Keep in mind that not all leasing agreements work this way, so be sure to read the fine print when signing.

Learn More About Leasing or Buying a Car 

featured lens Buy or Lease Your Next Car?

It's the classic decision that every auto-consumer faces: Pay cash upfront and own your vehicle or forego the ownership and pay monthly settlements instead? Buy or lease your car? As is the case with every other common dilemma, there is no slam-dunk...

Share Any Leasing Tips You May Have 

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  • Reply
    Ramkitten Ramkitten Jul 4, 2009 @ 4:34 am
    We're leasing a car right now (long story short, it's a car we wouldn't have if we didn't have to drive my elderly mom around in it, so she actually pays for it), and, when re-leasing, we finally figured out we could wheel-and-deal just like when buying a car. We didn't do that the first time; we just took what they offered. This time around, though, we got all up-front costs waived and got them to agree to keep the monthly payments the same as last time (which were really good, actually, because we'd put down a sizable downpayment for the first lease AND traded in an old car). So it ended up like a continuation of the first lease, only with a new car and more allowed mileage too, along with all maintenance and car washes covered.

    ANYhow, good lens! :)
  • Reply
    Ramkitten Ramkitten Jul 4, 2009 @ 4:34 am
    We're leasing a car right now (long story short, it's a car we wouldn't have if we didn't have to drive my elderly mom around in it, so she actually pays for it), and, when re-leasing, we finally figured out we could wheel-and-deal just like when buying a car. We didn't do that the first time; we just took what they offered. This time around, though, we got all up-front costs waived and got them to agree to keep the monthly payments the same as last time (which were really good, actually, because we'd put down a sizable downpayment for the first lease AND traded in an old car). So it ended up like a continuation of the first lease, only with a new car and more allowed mileage too, along with all maintenance and car washes covered.

    ANYhow, good lens! :)
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