Here’s a popular scenario illustrating the benefits of leasing a luxury car: a business owner wants to chauffeur clients around in a nice looking vehicle, on that will make a stark and positive impression. The only problem is the company is not yet successful enough to finance a luxury car. Fortunately, leasing puts a luxury car within the fiscal reach of our business owner.
This is, in essence, the benefit of leasing a luxury car. It allows lessees to enjoy a much nicer car than they might otherwise be able to afford, all for a low monthly price. If you want to upgrade your vehicle and start projecting success, now is a great time to lease a luxury car for yourself. Still not convinced? Take a look at these compelling reasons.
Financial Benefits of Leasing
The average projected term of a new car loan is expected to be almost seven years according to Bloomberg, and extra charges for taxes and vehicle depreciation are factored into car loans and leases. With an average term of 24 to 36 months, a lease saves money on tax and depreciation charges. Lower tax and depreciation costs mean lower monthly payments.
In addition, monthly lease payments may even be deductible from income tax. Leasing also requires a smaller (or non-existent) down payment than buying, meaning that there is no upfront hurdle.
Increased maintenance cost as a vehicle age is a compelling reason why leasing is preferable to owning. By the time a car or SUV has 50,000 miles on the odometer, vehicle repair and upkeep averages $2,200 a year. A lessee is unlikely to put that much mileage on a leased vehicle. Additionally, for all or part of the lease period, the vehicle is covered by the factory warranty.
Another of the benefits of leasing is the ability to afford a vehicle with more of today’s high-tech options. Besides having features like 4G or LTE data connections, a technologically advanced car means a safer car. The lower monthly payments that come with a lease can mean being able to afford a car or SUV with safety features like adaptive cruise control, automatic emergency braking, lane keep assist, and semi-autonomous driving systems.
A different type of option is the option of getting a new vehicle more often. If you are unhappy with a purchased car, you will probably be stuck with it for five-plus years. If, on the other hand, a leased car starts to lose its luster, you can be out from under it in two or three years or less. If you continue to take on leases, you will always be driving the hottest cars on the market.
The primary benefits of leasing are monetary: monthly lease payments are lower, and lessees pay little or nothing for upkeep and maintenance. Further, you can lease a better car than you can afford to buy, and you have the option of always driving new, cutting edge vehicles.