What are the Advantages of Leasing?

Lower Monthly Payments
Because you only pay for the portion of the car or truck that you actually use, your monthly lease payments are 30%-60% lower than for a purchase loan for the same car and same term.

No Down Payment
Car leasing provides the option of making no down payment, although you must still make the first month's payment and official tag and registration fees. Some promotional lease deals require a down payment to get the deal.

More Cars, More often
since monthly lease payments are lower than with buying, you get more car for your money and drive a new vehicle every two to four years, depending on the term length of your lease.

Fewer Maintenance Headaches
Most people like to lease for a term that coincides with the length of the manufacturer's warranty coverage so that if something goes wrong with the car, the repairs are always covered.

Lower Up-front Cash Outlay
Most car leases require little or no down payment, which makes getting into a new car more affordable and frees up your cash for other things. However, you can choose to make a down payment, or trade in your old vehicle, to lower your monthly payment amount.

Lower Tax Bite
In most states of the U.S. and in Canada, you don't pay sales tax on the entire value of a leased vehicle as you would if you purchased. You're only taxed on the portion of the value that you use during your lease. The tax is spread out and paid along with your monthly lease payment instead of being paid all at once.

No Used-Car Hassles
With leasing, the headaches of selling a used car are eliminated. When your lease ends, you simply turn it back to the leasing company and walk away, unless you decide to buy it or trade it.

Customers often say,I wouldn’t want to lease because I want to own my car, and with a lease I don’t own it. Well, yes you can still own your car. After you’ve made your agreed upon payments, you’ll be asked by the lease company if you want to purchase your car at the pre-determined wholesale value, or do you choose to turn it in? Most choose to turn it in and get a new one. A car is a depreciating asset that requires maintenance and care. While others are spending $ 1,000 or more at 35,000 miles replacing tires and brakes, you’re just turning in your car for a brand new one with full warranty.

Most customers find leasing a car is a great way to drive a new car because it eliminates the worry of being in a negative equity position. If the market drops on your car, just turn it in at lease end. Customers believe they want to own that $30,000 car after their 60 month loan. Well, that’s great, but after you’ve paid $30,000 for that car, paid taxes and interest and you’ve spent close to $35,000 for it, after 60 months have past, congratulations, you own it! Think about it, what do you really own? You own a 90,000 mile car that’s 5 years old that’s probably ready for new tires and brakes and may be worth $5,000….Yes you spent $35,000 or more and you now own a $5,000 car.Congratulations!

Time to re-think and know all your options. A vehicle purchase is the second most expensive item you’ll purchase next to your house. Know all the facts before you purchase your next vehicle. You may find a lease, which simply put is a different way to finance a car, is right for you.