Despite aggressive low-interest financing, cash-back offers and other
purchasing incentives offered by leading auto-makers to buyers,
leasing
numbers keep increasing steadily over the years. Leasing is not only
an
attractive financial proposition to most auto-consumers, but also a
lifestyle and preference choice.
Benefit Number 1: Keeping up with the latest trends
Leasing is sometimes more of a personal and lifestyle choice than a
financial one. Many people are not comfortable with the idea of owning
a
vehicle over a long period of time. They’d rather keep up with the
latest
trends of the industry and drive the latest models every two to three
years.
Leasing a car gives you the convenience of having the latest
technology
and safety innovation, such as an electronic stability system, DVD
entertainment systems and advanced stereo equipment. If you are
willing to
forego ownership for the latest set of wheels, than leasing is your
best
option.
Benefit Number 2: Purchasing Flexibility
Leasing also offers purchasing flexibility: it allows you to defer the
purchasing decision while using the car. You don’t have to haggle with
your
mechanic over repair expenses, deal with hefty maintenance bills or
worry
about a depreciating asset. Provided you can keep the vehicle in good
condition and stay within the contracted mileage allowance, you’re
effectively getting a test drive for the length of your lease.
At the end of your lease, you can purchase the vehicle or simply turn
in
the keys and walk away. No questions asked.
Benefit Number 3: Cash Flow
Leasing offers many short-term benefits. It reduces your initial cash
outlay as you do not have to pay the large down payment required for
car
ownership. You only pay for the depreciation on the car - only the
part you
will use during your lease, not the entire vehicle. This results in
lower
monthly payments and frees even more cash. This cash can be put to use
more
intelligently elsewhere than the questionable investment of owning a
depreciating asset. If you are self-employed or use your car for your
job,
then you can write off your leasing payment as a business expense.
Benefit Number 4: Negotiating Leverage
Although it may seem a little unorthodox in this industry, almost
everything about leasing is negotiable. 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. You can also do some shopping around and compare
deals
from different auto-insurers to get the cheapest GAP insurance for
your lease.
