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by Anonymous on March 25th, 2007

Anonymous

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What advantages are there in leasing a car?

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Answers. 7 helpful answers below.

  • by Bleu723 on March 25th, 2007

    Bleu723

    Car leasing can offer advantages and be an attractive alternative to buying, although it's not for everyone. You must decide about the importance and priority of these benefits to you. So, what are the potential advantages of leasing?

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

    More Car, More Often
    Since your monthly payments are lower, you get more car for the same money and drive a brand new vehicle every two to four years, depending on the term length of your leases.

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

    Lower Upfront Cash Outlay
    Most 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 of the U.S. and in Canada, you don't pay sales tax on the entire value of a vehicle when you lease. 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.

    Gap Coverage Included
    Most leases automatically include free "gap" protection in case your vehicle is totaled in an accident or stolen, and you still owe more than the vehicle is worth. Loans do not.

    Even with all of the above benefits, car leasing requires more discipline and commitment than buying. Therefore, you'll want to examine your motives and qualifications to determine if you are a good leasing candidate.

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  • by puppylover on March 25th, 2007

    puppylover

    I am not sure about the tax breaks, unless you are leasing one for a work related job. If you do you can use all expenses for a tax write off. But one advantage of leasing over a loan is if some thing has happened and you could no longer aford it you have the choice of returning it to the leasee and it will not hurt your credit. That in itself is a great advantage.

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  • by answerbagche on October 22nd, 2009

    answerbagche

    You can keep up with the trend, by leasing for short term and switching car.

    http://benefitof.net/benefits-of-leasing-a-car/

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  • by Little Miss Dangerous on March 25th, 2007

    Little Miss Dangerous

    On the personal front, short term leases (2-3 years) allow you to always drive a new vehicle. Since the vehicle remains under warranty you have limited additional financial outlays (typically just oil changes, tire rotations and fuel).

    Another plus (if you're looking at new cars) is you can often lease short-term with a more affordable monthly payment than if you were buying. For example, I'm leasing a $37k minivan that I couldn't afford to buy on loan.

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  • by tomsims on March 25th, 2007

    tomsims

    Ther might be some tax breaks for business use, but for many people standard milesage works better.

    For me, leasing a car is not helpful. I drive too many miles. that can cost you.

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  • by Mushen on March 25th, 2007

    Mushen

    You get to drive it around and pretend you own it.

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  • by keithold is a prodigal bagger on March 25th, 2007

    keithold is a prodigal bagger

    G'day,

    Thank you for your question.

    If you want detailed advice, you should speak to your accountant. However, the advantages would probably be related to the ability to deduct some or all of the expenses if it is a work vehicle or used to earn an income.

    Regards

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