Car Leasing Center – Benefits of Leasing a Car

benefits-of-car-leasingCar leasing is a huge benefit to a lot of people, so much so that a lot of customers who are die hard leasees have decided to switch to brands which still offer leasing as an alternative.

There are a few benefits of leasing a car which make it a more viable option as opposed to financing and owning the car outright, but like anything else, it is buyer beware. Make sure you understand all the benefits of leasing a car before you decide to sign on the dotted line!

Benefits of Leasing a Car

1. The Payment – This is a HUGE benefit of leasing a car! The concept I love most about leasing is the fact that your payment is lower than it is if you were to finance the car. See, with a lease you are paying for the amount of the car that you are driving over a specified period of time. Yes you have to pay the GST/PST (as the case may be in your Province), however these two taxes are charged on the payment itself … NOT on the whole price of the car.

With a finance option you have to remember that you are paying on the whole price of the car, plus the interest, plus the taxes and because of that your payments are higher.

2. You have options –Benefits of leasing a car include options at the end of your lease which gives you two options, you can:

a. Give back the keys and get into a new vehicle. Let’s face it 3-4 years is a long time, needs change, your lifestyle changes, even your tastes change. With a lease you have the opportunity to roll with those changes and if there is a new vehicle that has caught your eye you have the flexibility of having it next.

b. You have the option of buying the car out. Now, keep in mind this option is viable only IF the car held value. What I mean by that is this. When you lease a car you are also provided with the buyout of that vehicle. Meaning what it is that you have to pay if you decided to keep the car. What you do is, when it comes time to make the decision as to what you are going to do, have the vehicle appraised. You know what the buyout is, what you have no idea is what is the current market value of that car. Again, remember 3-4 years is a long time, the climate changes, I mean look where we are now which is a perfect example. If the appraisal of your leased car is close to what your buyout is, then you certainly know that the buyout is worth it “in today’s market dollars.” If the car is worth less in “today’s market dollars” then the decision is easy. I mean why would you pay more for the car than what it is actually worth? Give it back and get into a new vehicle!!!

Make Sense???

3. Cycle in and out of a vehicle more often – Another benefit of leasing a car is that you can get into a new vehicle more often. As your needs, lifestyle and taste changes, as does to the auto industry. New vehicles come out, technology advances and of course leasing gives you that option to get into the “latest and greatest”

The benefits of leasing a car make it a very viable option over financing a vehicle, which is why more and more people made the switch. HOWEVER, keep in mind that leasing might not be as viable option for you. There are things like the amount of kms you drive per year that might make financing more of a benefit. My strong recommendation to you is before you sign anything concerning a lease (or finance for that matter) that you sit down with a sales rep and get ALL THE FACTS and then determine if the benefits of leasing a car will work to your advantage.

If you aren’t sure what to ask, or would rather not go in and be pressured, no worries, send me an email and I will be more than happy to help you out and give you some advice before you go into a dealership!

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