A Quick Missive On The Benefits Of Leasing

by Ian Tate

Leasing continues to be a big hit for consumers despite the fact that low-interest financing, cash-back deals and various other purchasing schemes are vigorously being pushed to would-be car owners or buyers. Leasing is more than just an inexpensive way to drive a hot new model every few years or so, but also a reflection of a consumer's personality and lifestyle.

Benefit One. Keeping abreast with the latest automotive advances.

People who lease a vehicle are usually more driven by personality rather than the desire to be frugal. Many people are not comfortable with the idea of owning a vehicle over a long period of time. These people would prefer the trendiness and convenience of driving a new, exciting and high-end vehicle every two to three years.

Leasing a car is a great opportunity for anybody to inexpensively enjoy technology advances that make for a safer and more entertaining driving experience, such as DVD players, multi-speaker stereo systems and electronic stability. Of course, the catch is not being the vehicle owner, but leasing allows you to have a neat car with all the bells and whistles for a limited period of time.

Second Benefit. Flexibility in Purchasing.

In addition, you get more purchasing options through leasing. You get a chance to protract the decision to purchase while enjoying full use of the vehicle. No longer do you have to worry about owning a depreciating asset or about the health of your coronary system upon seeing a gigantic bill for repairs or maintenance. Think of a lease as a two to three year test drive (may be shorter or longer depending on the lease's terms), but just be sure you are staying within the mileage allowance and keeping the car in pristine condition. The expiry of your lease would give you the simple decision of purchasing the vehicle - or tossing the keys to the salesman and thanking him for a good (or not so good) "extended test drive." End of story.

Third Benefit. Cash Flow.

Here are just a few of leasing's immediate advantages. First, you do not have to make a significant cash disbursement as there is no down payment that needs to be fulfilled to commence ownership of the vehicle. Rather, you would be paying for the car's depreciation, which would only be the portion you will be using during the course of the lease. This would reduce your monthly payment and leave you more funds in your kitty. 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.

Fourth Benefit. More Room to Negotiate.

It may not seem too easy to believe at first, but leasing is an option that has a lot of negotiable elements. There are many things you can do if you research on the fees and leasing options, such as extend your mileage limit, get a lower purchase price should you buy the vehicle upon expiry of the lease, or pay lower monthly payments. It pays to do your homework - do a comparison for several deals before settling on a lease agreement, and look for an option that has inexpensive GAP insurance as part of the deal.

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