Lower Monthly Payments Because you only pay for the portion of the value of the car or truck that you actually use, your monthly lease payments are 30%-60% lower than for a purchase loan for the same car and same term.
More Car, More Often Since monthly lease payments are lower than with buying, you get more car for your money and drive a new vehicle every two to four years. A luxury vehicle can often be leased for the same or lower payments than loan payments for a less expensive economy vehicle.
Lower Up-front Cash Outlay Most car 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. Preservation of cash is a strong incentive to lease.
Lower Tax Bite In most states of the U.S. and in Canada, you don't pay sales tax on the entire value of a leased vehicle as you would if you purchased. 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
GAP Coverage Included Most car leases automatically include free "gap" protection in case your vehicle is totaled in an accident or stolen, which pays off your vehicle when insurance doesn't cover the full loss. Loans do not generally come with automatic GAP protection and must be purchased separately.
IS LEASING RIGHT FOR YOU?
HOW LONG DID YOU KEEP YOUR LAST VEHICLE?
If you purchase new vehicles every few years before you pay the loan off then leasing may be right for you. Leasing allows you to trade every 2-4 years to keep the latest body styles, newest technology, and not having to worry about negative equity. Plus, you are always driving a new vehicle without a bunch of miles and wear and tear.
ARE YOU CONCERNED ABOUT YOUR VEHICLE LOSING VALUE?
Owing more to the bank than your car is worth is not fun. If you typically trade in your vehicle for a new one before it is paid off, leasing may be a good option for you. You don't have to worry about resale or trade in value on a lease. If the value of your vehicle drops during your lease, it's not your problem it's the banks to deal with.
ARE YOU LOOKING FOR A LOWER MONTHY PAYMENT?
Leasing typically offers a lower payment since you are only paying for the portion of the vehicle you are using. For example, on a $30,000 car, you'd finance the entire $30,000 purchase price with a car loan. With a car lease, you only pay the difference between the car's price and what it's expected to be worth at the end of the lease, which is a car's residual value. So if the car's residual value is 55 percent after three years, for example, that means the $30,000 car would be worth $16,500 at the end of the lease. You'd make lease payments on the remaining $13,500 and not the full $30,000.