Car leasing is a method of obtaining access on new or used cars by paying small amount of money. When you lease a car, you do not get the ownership of the car and after a specified time period, you will have to return the car to its original owner.
Leasing new cars
In most situations, car leasing is a long-standing financial mistake. Compared to car financing or buying the used cars, car leasing is really very expensive and restrictive. Still, there are exceptions to everything. In some situation, new cars leasing does make sense.
Lease for Business Use
If you are a business owner and need car for business use, then you can think about car leasing. According to tax laws, businesses can deduct the lease payments from their taxes. It means you can ambidextrously make use of brand new car as well as save money on taxes.
Lease Your First Car if it is a Factory Overstock
Sometimes car manufacturers drop the prices of the cars which are going to be out of stock. In order to quickly sell the remaining cars, they drop the price. It means both selling price and leasing price will get dropped.
Now, in this situation leasing seems advantageous. If you buy such cars on loan, the time when you pay the loan amount, your car will become old model. On the other hand, if you lease such cars, you can enjoy the luxury features of the new car at good rate and you need not have to use the old modeled car after leasing period.
Intentionally Renting
Leasing can be advantageous if it is a planned lease. For example: You are currently living in an area just for 2 or 3 years. After that you will leave that area forever. In such situation, leasing a car for transportation is the best option. Once your leasing period is over, you need not have to worry about taking the car with you.
Car leasing is always being a hot topic of automotive news. Leasing has advantages as well as disadvantages. Thus, if you are thinking about car lease, think twice and then take an apt decision by keeping the long-term financial benefits in your mind.
