Benefits of leasing

Despite aggressive low-interest financing, cash-back offers and other 
purchasing incentives offered by leading auto-makers to buyers, leasing 
numbers keep increasing steadily over the years. Leasing is not only an
attractive financial proposition to most auto-consumers, but also a 
lifestyle and preference choice. 

Benefit Number 1: Keeping up with the latest trends

Leasing is sometimes more of a personal and lifestyle choice than a 
financial one. Many people are not comfortable with the idea of owning a 
vehicle over a long period of time. They’d rather keep up with the latest 
trends of the industry and drive the latest models every two to three 
years. 

Leasing a car gives you the convenience of having the latest technology 
and safety innovation, such as an electronic stability system, DVD 
entertainment systems and advanced stereo equipment. If you are willing to 
forego ownership for the latest set of wheels, than leasing is your best 
option.

Benefit Number 2: Purchasing Flexibility

Leasing also offers purchasing flexibility: it allows you to defer the 
purchasing decision while using the car. You don’t have to haggle with your 
mechanic over repair expenses, deal with hefty maintenance bills or worry 
about a depreciating asset. Provided you can keep the vehicle in good 
condition and stay within the contracted mileage allowance, you’re 
effectively getting a test drive for the length of your lease. 
At the end of your lease, you can purchase the vehicle or simply turn in 
the keys and walk away. No questions asked.  

Benefit Number 3: Cash Flow

Leasing offers many short-term benefits. It reduces your initial cash 
outlay as you do not have to pay the large down payment required for car 
ownership. You only pay for the depreciation on the car - only the part you
will use during your lease, not the entire vehicle. This results in lower 
monthly payments and frees even more cash. This cash can be put to use more
intelligently elsewhere than the questionable investment of owning a 
depreciating asset. If you are self-employed or use your car for your job, 
then you can write off your leasing payment as a business expense. 

Benefit Number 4: Negotiating Leverage

Although it may seem a little unorthodox in this industry, almost 
everything about leasing is negotiable. If you know all the fees involved, 
you can lower your monthly payments, negotiate the purchase price of the 
vehicle at the end of the lease and contract additional miles on top of 
your mileage limit. You can also do some shopping around and compare deals 
from different auto-insurers to get the cheapest GAP insurance for your 
lease. 

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