6 Reasons to Lease Your Next Vehicle

Not everyone has the funds or desire to purchase a vehicle. Thankfully, there’s an alternative solution that’s become increasingly popular in recent years: leasing. Under a lease agreement, you agree to pay fixed monthly payments over a length of the lease, after which you return the vehicle. So, what benefits does leasing offer?

Bigger Tax Write-Offs

If you intend to use your vehicle for business purposes — work travel, transport goods, pick up clients, etc. — you’ll reap the benefits of bigger tax write-offs when leasing as opposed to financing. In fact, the U.S. Internal Revenue Service (IRS) allows business owners to write off 100 percent of their lease payments for leased vehicles used strictly for business purposes.

Avoid Value Depreciation

It’s no secret that vehicles depreciate over time. Statistics show that new cars lose up to 19 percent of their value during the first year they are driven, and every subsequent year it will lose an additional 10 percent to 15 percent. You can avoid this depreciation, though, by your leasing your vehicle. A leased vehicle will technically still depreciate, but it won’t affect your finances since it’s owned by the leasing company.

It’s Cheaper Than a Financing Payment

Leasing a vehicle is cheaper than financing it. According to the Lease Market Report by Edmunds, monthly lease payments in the United States are about 23 percent lower than financing payments for the same vehicle. Large vehicles, however, had the biggest difference between payments. Edmunds found the average monthly lease payment for a compact truck was 214 percent lower than a monthly financing payment.

Better Car For Your Money

Because lease payments are lower than financing payments, you can get behind the wheel of a better car. Want to drive a luxury sports car but can’t afford to finance it? Consider leasing as an alternative. Even if you can’t comfortably afford financing payments, you might be able to cover the lower leasing payments. This is just one more reason to consider leasing when searching for your next vehicle.

Cheaper to Maintain

Leased vehicles are cheaper and easier to maintain since they are typically offered with a warranty. From engine oil changes and coolant flushes to timing belt replacements and wheel alignments, vehicles need regular maintenance to perform properly. Normally, maintenance such as this is covered under the leased vehicle’s warranty, giving you peace of mind knowing that an unforeseen mechanical problem won’t break your bank account.

Easy to Change

Finally, leased vehicles are easy to change at the end of the leasing cycle. If you purchased your vehicle, you’ll have to find a buyer and navigate the complicated process of exchanging the title and conducting the transaction. Leasing simplifies this process by allowing drivers to easily forfeit their leased vehicle and exchange it for a new one.