Leasing a car refers to the renting of a car, with payments made on a monthly or weekly basis on either a 36 or 48 months term. Leasing a car for the first time can be mind-boggling, so let’s dive deeper and check out lease deals.
Benefits of Leasing:
Leasing a car requires little to no down payment. Then there’s the added joy of driving a new car every 3 years or so. Moreover, weekly or monthly payments are usually low. The only expenses to be incurred are the maintenance costs. There is no sales tax involved, up front. Leasing is highly profitable if the car is to be used for commercial purposes as it offers tax advantages. Essentially you are paying for the depreciation of the car and not the original price plus the depreciation.
Types of Leases:
- Finance Lease: This type of leasing transfers the ownership of the car to you at the end of the tenure with extra charges paid up front.
- Operational Lease: In this case of leasing the ownership of the car is returned to the lessor.
Disadvantages of Leasing:
If your job requires you to change cities very frequently then leasing might not be for you since most leasing companies restrict the car to be in the same city. Further, the lease deal will have a specified number of kilometers the car can travel per year. The request for increasing this limit is usually costly. If you are one who likes to accessorize your ride, then leasing will not be a good option as changes cannot be made to the car’s interior or exterior.
So, if all the advantage fall in line with your demand and the disadvantages don’t hurt you much, then lease out a car with lease deals favoring your taste and finance.