5 Reasons Why Leasing a Car is Cost-Effective – Most drivers have a negative view of leases and don’t understand why someone would choose to lease a car instead of buying one. What they don’t understand is that not everyone wants to have to deal with all the headaches of owning a vehicle. Maintaining a vehicle will often cost you a lot more when you own one, but there are many other financial advantages to leasing instead of buying. Below we look at a few reasons why leasing a car is so cost-effective.
Lower Cash Flow Hit
If you’re on a strict budget but still want a nice car, getting a lease could be the best solution for you. This is because the amount of money you’ll spend on your monthly lease payments will be lower than what you’d have to pay on financing for the same vehicle. If you manage your budget on a per month basis, a lease will have less of a hit on your finances and will give you a little more room to breathe.
One of the biggest issues with buying a vehicle, especially a brand new one, is depreciation. Having a car lose nearly half of its value after three years is something most drivers won’t be happy about, especially when knowing that they could’ve avoided that by going for a lease.
With a lease, you can get a brand-new car without having to think about depreciation. One thing that people overlook when they calculate depreciation is the demand for the vehicle when they decide to sell it. Depreciation is just an approximate formula, but it doesn’t factor in the market conditions. You could very well end up with an unsaleable vehicle on your hands for many reasons. If there have been serious issues with that car, or people don’t like it anymore for some reason, you might have a hard time selling it and be forced to offer a major discount for someone to take it off your hands.
Leasing a vehicle will give you the peace of mind that you’ll be able to turn in the vehicle once you’re through with it. You’ll then be able to get another brand-new car on a lease if you want and always drive the newest model for a low monthly price.
Driving a newer vehicle also means that it will be more efficient, which will further drive down costs. This is especially true when it comes to electric vehicles. If electric vehicles intrigue you and you’re interested in a cheap electric car lease, you can learn more through the ElectriX website. They list the ins and outs of electric car lease deals but will also help you tell which costs you can expect and a few facts about electric cars you might not know.
Lower Maintenance Costs
Getting a lease also means that you won’t have to spend as much on maintenance. Assuming that you’re getting a new or almost new car, you’ll have to deal with fewer breakdowns, and any issues with one of the car’s major components, and which are covered by the warranty, will be repaired for free.
You might also get additional service for free as part of the lease. Some providers will go as far as offering free oil changes to buyers. Oil changes can be a major inconvenience and cost a lot more money than you imagine depending on the vehicle, so don’t scoff at these savings.
Getting a lease could also allow you to drive the car of your dreams even if you don’t have the budget to buy it or to get financing. With a car lease, you won’t even have to pay a down payment in most cases. You’ll get to drive a luxury car for a fraction of what you’d have to pay on financing and get a new one every two to three years. Being able to drive more cars for less is a major advantage of leases and this is why they’re so popular with luxury cars.
If the car is for a business, know that there are tons of tax benefits to leasing instead of buying the vehicles in your fleet. Even if you don’t run a business, you could still get tax benefits from leasing a car. You could save part of the VAT by going with a lease, for instance. So, before you write leases off, look at the tax implications and how beneficial they could be for you or your business.
These are all great reasons why leasing a vehicle could make sense financially. It’s all about assessing your current situation and seeing whether buying or leasing a vehicle would work better for you in the long run.