The main benefits of Leasing a new vehicle are it allows you to have flexibility with your finances and permits you to adapt to your changing life styles or life stage.
With the potential for less money down and the opportunity of an affordable monthly payment, it frees up your money to take care of other financial priorities. In turn, leasing allows you to drive a new vehicle that you likely want within your budget.
Leasing also allows you the flexibility of turning your vehicle in at the end of your lease agreement versus trying to sell your vehicle. Customers who lease prefer to drive a new vehicle every 2-3 years and appreciate making lower monthly payments. Customers who finance their vehicles tend to drive them for five to 10 years and appreciate driving without mileage limitations.
For certain business customers there may also be additional tax advantages with leasing.
In a lease, you contract to enjoy a new vehicle for a specified period of time – about 2 to 3 years. You can appreciate the benefits of driving the latest and greatest vehicle design, technology, safety and performance.
One of the biggest advantages of a lease is that it does not usually require a substantial down payment.
If the finance period is the same, your monthly payments will generally be lower when leasing because your payments will be based on the vehicle's estimated depreciation.. That is, you are contracting to use a portion of the car's value, rather than buying the entire car.
A lease makes it easy to drive a new car more frequently and allows you to switch your tastes or preferences can make it easier to plan changes in lifestyle or life stages.
If you are only driving a new vehicle every 2-3 years, your vehicle is likely to remain under warranty reducing your cost of ownership.
You don't have to worry about resale value. If your car depreciates more than the estimated residual value in your lease contract at full term, you can turn it in at the end of your lease term and drop the option to buy it.
You may find larger tax deductions with leasing than with buying a vehicle. Check with your tax advisor.
Feel free to consult one of our Finance Experts to see if Leasing works for you.