Despite aggressive low-interest financing, cash-back offers and other purchasing incentives offered by leading auto-makers to buyers, leasing numbers have kept increasing steadily over the years. Auto leasing is not only an attractive financial proposition for many consumers, but also a lifestyle and preference choice. Car leasing has several distinct benefits for the consumer:
Auto Leasing Benefit Number 1: Always Drive the Latest and Greatest
Car leasing can often be more of a personal and lifestyle choice than a financial one. Many people are not comfortable with the idea of long-term vehicle ownership. Instead they'd prefer keep up with the latest trends and styles and drive the newest models every two to three years.
Car leasing gives you the convenience of having the latest technology and safety innovations such as an electronic stability system, DVD entertainment systems, hybrid and alternative fuel technologies, and advanced stereo equipment.
Thus, if you're willing to fore go ownership in favor of having the latest set of wheels, then auto leasing may be your best option.Auto Leasing Benefit Number 2: Purchase Flexibility
Car leasing also allows you to defer the purchasing decision while having use of the car. Auto leasing also means you avoid having to haggle with your mechanic over repair expenses, deal with hefty maintenance bills or worry about the depreciation of the vehicle. As long as you keep the vehicle in good condition and stay within the contracted mileage allowance, you effectively get to test drive the car for the length of the lease. At the end of the lease you can either purchase the vehicle or simply turn in the keys and walk away. No questions asked.
Auto Leasing Benefit Number 3: Increased Cash Flow
Among the many short-term benefits of car leasing is it reduces your initial cash outlay since you do not have to make the large down payment required to purchase the vehicle. You only pay for the depreciation on the car - the part you'll use during your lease, not the entire cost of the vehicle. This means lower monthly payments and therefore frees up cash for other uses. The money you save can then be used more intelligently elsewhere other than the questionable investment of owning a depreciating asset. If you're self-employed or use your car for your job, then you can write off your lease payments as a business expense.
Auto Leasing Benefit Number 4: Negotiating Leverage
Almost everything about a car lease is negotiable. If you know all the fees involved, you can lower your monthly payments by negotiating the purchase price of the vehicle at the end of the lease. You can even contract additional miles on top of your mileage limit. You can also shop around and compare deals from different automobile insurers to get the cheapest GAP insurance for your lease.
Auto Leasing 101 - The Benefits of Leasing