What are the Benefits of Leasing Verses Buying a Car
Courtesy Chevrolet Phoenix Arizona
When deciding to lease a Car or Truck, One of the most obvious questions you may wish to ask is "What are the Benefits of Leasing for me?". Although the answer depends on your particular situation, there tends to be three basic advantages of leasing which you should take into account in order to determine if leasing is the right choice for you:
- Convenience
Simply stated, it is easier to meet your vehicle and equipment financing needs via leasing a Car or Truck. There is less paperwork involved, less-stringent credit requirements, and more overall flexibility.
- Affordability
Lease payments tend to be lower than financing payments because you only have to pay for the time you actually use the vehicle. Normally, this can result in a savings of 30-50%. Plus, you can lease up to 100% of the value of your vehicle or equipment, which is easier on your cash flow "Possible to have no down payment" .
- Tax Benefits
Lease payments in a tax lease are fully deductible for federal income tax purposes. This deductibility of lease payments provides a clear tax benefit for the company, lowering overall income and tax payments. If a company were to purchase the equipment, utilizing loan financing, it would only be able to deduct depreciation expense and any related interest expense - not the full value of the lease.
Here is Buzz Doering's 10 Step Guide to Leasing
This is a great resource for the public and sales team that helps you understand the leasing market place. Please give it a read. Or print it out and bring it in when you come in to look at vehicles.
