Another question we hear all the time is about leasing versus buying your next vehicle. Many customers have a lot of negative pre conceived notions about leasing when the fact is that many people don’t understand the benefits of leasing a new vehicle. Leasing is really just another way to finance the acquisition of a new vehicle.
Leasing is great for a number of reasons:
Payments are significantly lower than traditional financing at similar terms
There is usually less out of pocket expense at time of lease signing and sometimes leases can be arranged with no money due at signing. Plus lessees have the ability to spread sales tax over the monthly payments and they will not have to pay sales tax on the vehicles residual amount unless they decide to purchase the vehicle at the end of the lease term
All leases come with the protection of GAP insurance while that is not the case with all financed vehicles. GAP insurance covers the difference between what you owe on your vehicle and what your car is actually worth in the event of a collision resulting in a total loss or if your vehicle is stolen.
There is no exposure to potential negative equity at the end of the lease term. You can simply return the vehicle to the leasing company after a simple lease return inspection is performed.
Lower maintenance costs and no exposure to costly long term maintenance and repair work
For businesses, there are multiple tax benefits to leasing vehicles. We encourage you to consult your tax advisor for more information on the tax benefits of vehicle leasing.
Lastly, it’s great for people that get tired of driving the same stale car all of the time and want to have the security of driving a new car every three years that is always covered under warranty. However, if you decide you like the vehicle you can always purchase it at the end of the lease term and arrange for financing with us to help keep your payments low.
There are some perceived drawbacks to leasing:
Annual mileage limitations do apply. Most leasing companies will not go beyond 25,000 miles per year. If a lessee does go over the allotted mileage, a per mile fee may apply
The ability to customize the vehicle in a way that causes permanent alteration is prohibited
Possible early termination fees may apply if you end your lease early
So as you can see, there are a number of benefits to leasing but it’s not for everyone, especially for those that put over 25,000 miles per year on their car. In addition there are some that are not comfortable with the prospect of not owning their car. We understand that leasing is a confusing concept for some. That is why our team of professionally trained sales associates are eager to assist you in making the best decision when it comes to the car you buy and payment option your decide on.