Pros of leasing a vehicle

For many, purchasing a vehicle is a better financial decision than getting one on the lease; nevertheless, if leasing is the correct option for you, you should be aware of its benefits over purchasing a car.

1. Monthly Payments Are Lower:

Compared to owning a car, leasing usually means monthly payments are 30 to 60% lower. As a result, you can drive a car that you might not otherwise be able to afford, possibly the greatest leasing advantage.

2. Low Maintenance and No Repair Costs:

If you follow my advice and rent for 36 months or less, you are usually covered by the manufacturer's bumper-to-bumper guarantee for the duration of your lease. So, you don't have to worry about major repairs and some manufacturers even offer free maintenance for the first few years.

3. No Hassles When Buying Used Vehicles:

All you have to do is return the car to the company (where you leased it from) after the lease expires. As simple as that! You don't have to deal with the headache of selling a used car, and you don't care about the vehicle's value after the lease. Leasing companies often overestimate the value of a car, resulting in a lower lease rate for you and a loss for the leasing company.

4. Tax Advantages:

You can usually deduct the full lease costs from tax if you use the car for business purposes. Even if you don't have a business, most states only tax you on the "use" portion of your lease, which means you don't have to pay tax on the full cost of the vehicle. This can save you a few hundred dollars compared to buying a vehicle and paying full price in taxes.

5. Get the newest cars to drive:

With a lease, you can drive a new automobile every two or three years, providing you access to the latest technology advancements and safety features.

6. A Wider Range of Vehicles:

You don't have to worry about the reliability or quality of a car when you rent it as you will only be driving it for two to three years. Most cars run smoothly during this time, so you can test vehicles that otherwise might not drive.

7. You'll have to pay less money upfront:
8. Many cars are available for lease without any down payment (although you’ll always need to pay some fees upfront, which can usually be rolled into the monthly payment). However, while buying a vehicle, you're normally needed to pay down 20% to qualify for a reasonable auto loan rate.
9. GAP Coverage is included:

Most leasing contracts include additional gap insurance to protect you if the car is stolen or if it is a total loss during the term of the lease.

9. Useful if you're prone to mishaps:

If your newly bought car is in an accident, your insurance will cover the repairs, but you will lose money selling it because it means "depreciation". People are unwilling to pay the same amount for a damaged vehicle. If you destroy the car during the lease, the insurance will take care of it, but the depreciation lies with the leasing company, you shouldn't worry about it at all!