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Benefits of Leasing vs Financing A Car

Car leasing is becoming a popular activity in today’s world. Everywhere, you go, you will hear people leasing vs financing a car. Why the change of heart all over sudden? Though some people prefer to buy their own cars, it is evident that car leasing has some benefits and that is why a lot of people are going for it. There are so many benefits that come with car leasing and if you are still wondering whether to choose car leasing or not, then you better choose it because it is advantageous.

The benefits of Leasing versus financing a car often include: lower monthly payments because of stacked incentives and high residual values, lower maintenance costs and repairs because of warranty coverage, guaranteed trade back value even if the car has been involved in an accident, payment write-offs if you are a business owner, and new access to newer features and technology. Keep reading for detailed information.

1. There are lower monthly payments when leasing vs financing a car

When you lease a car, there is usually a monthly payment which ranges between 30 to 60% which is more favorable than buying a car. An easy benefit of leasing vs financing is you only pay for what you’ll use, and you are guaranteed a trade value at the end of your contract, unlike financing. Most of us want a nice car that we can enjoy around and feel like we have made it in life. There may be only a barrier to this and it may be that you don’t have money. When you lease a car, you will be able to drive it while you pay monthly installments of an agreed fee with your care provider so that you can enjoy it in the long run.
With this, it enables you to drive your dream car that you thought you could not afford and this is the main advantage of leasing a car. When you buy a car, you can be drained all your money and you will be wondering where to get the next cash if you didn’t have other sources, leasing saves you the burden.

2. Low maintenance and repair costs

When for example you lease a car for a period of 36, months or less, the good thing is you will be covered by your manufacturer’s warranty during this period. Here, you will not have to worry about the repair costs, maintenance, and all the requirements to maintain your leased car. You go it all covered. There are some manufacturers who offer free maintenance for several years when you first get the car. What you can simply do is to enjoy your new vehicle but don’t spoil it since your maintenance and repair costs are being taken care of. If there are any maintenance costs, then they will be low because you are a member of that manufacture’s company and they will do their best to maintain their car. This is advantageous to car owners.
If you’re looking for the best lease deals on a new car, check out our deals of the month

3. There are no Hassles with Used cars

When the period for the lease is over, you don’t have to worry about the used car. That you simply do is you return the car back to the leasing company. You don’t have to struggle to try to sell the car. Here, the value of this car will not be your problem, You simply have to return it to the leasing company and they will know what to do with it. In some instances, there are some leasing companies which overestimate the car’s value which, in turn, results in a cheaper lease payment for you. This is usually a major loss for the company but you have benefited in return. Here, you simply don’t have to worry about anything.

4. There are Tax benefits

If you want to use your car for your business, then you need to write off the ease payment such that it appears as a tax deduction. Moreover, if you don’t have a business, there are some states which will only tax you on usage parts of the lease. This only means that you will not have to pay taxes fully for your vehicle. If you are leasing vs financing a car, you will be able to save some money here and there and in turn, invest it somewhere else. Taxes can be frustrating at some point and if you want to save your money, then you need to consider leasing your car.

5. Get the benefit of driving the latest cars

For sure, this is the main benefit of going for a lease for the car. Imagine driving the latest car in the market without struggling? If you really love cars, then you will enjoy this. You can go to your company and select the latest car on the market. At a monthly fee, you get to roll with the car of your dreams without struggling. Who will not want this? The benefit of leasing vs financing a car on a shorter term means more access to latest technology which provides better fuel economy, safety features, and lower insurance payments. The best part of it is that you are all covered and you get to pay a monthly cost that you have agreed upon with your company. Many people are doing this. You will find someone driving the latest Ferrari and you will be like, How did he afford this? Well, the truth of the matter is that they might have leased it.

6. There are more choices for vehicles.

When leasing a car, then you will not have to worry about the quality of the car or reliability. This is because you will only be driving it may be for the next 2 or 3 years. This is important because you can drive even the cars that you will not necessarily buy in the future. You can still choose a variety from them and there is no limit to this. If you don’t like a car because of how it looks or functions, then you will not buy it necessarily. What you do is that you have many choices that you can select from. Here, you not only drive the best car but you also have the best experience as a car owner. If you want to learn more about leasing, complete Conquest’s match making form to find out how we can show you more choices for your next vehicle.

7. The best if you are prone to Accidents

When you buy a car and wreck it in the driving process, then the insurance company will pay for the damages by when the time comes for you to sell it, then it will have diminished in its value. This will be a big loss for you. No one will be willing to buy that car for your gain unless you sell it at a loss. However, when you lease a car and wreck it, the insurance company will take care of it, but when that time for you to sell the car comes, you will not have to worry about selling it rather, it will be the leasing company’s problem.

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8. You take control of your monthly spend on the vehicle

When you lease a car, you will be able to know the costs and expenses that are going to cost you because they are combined into one. These include fuel and insurance. They all put under monthly payments, breakdown cover, and also Road Fund License. This enables you to budget well and thus avoiding overspending on the vehicle.

9. You Enjoy the latest Features in Vehicles

Who wouldn’t want to enjoy the best features in the best vehicle? None. Because you are cruising around in the latest model, then be sure to enjoy the best and latest features in the new catch. These include the latest technology which has been introduced by car manufacturers. There are some recent additions in vehicles such as Autonomous Emergency breaking which prevents crashes to a larger extent. Furthermore, there is a mirror link which matches the smartphone and the car. These are good features that you get when you lease the car at a monthly cost. Why then struggle with saving lots of money to buy a car if you can still get it for free and pay less monthly?

10. Has a GAP coverage

Most of us are not always lucky. Sometimes you just buy a car and enjoy it in the short run. The next time you will be out there crying because someone has stolen your car from you. Well, when you lease a car you don’t have to worry about these. They got you all covered. GAP coverage is there for you if the car is destroyed or stolen from you during the lease period. This is easy for most people because you will not always be lucky. Sometimes it’s good to be prepared because you don’t know what will happen in the future.

In summary, leasing vs financing a car is the best thing you can do in Canada. There is also a growing market of lease takeover marketplaces to help you get transfer out of a lease if you don’t want to keep i for your full obligation. As you have seen, leasing has so many advantages out there. You are sure to drive the latest car, you don’t have to worry about insurance, you pay a monthly fee and you can still budget well on your money. This is the best way to enjoy using a vehicle.

Nicholas Coatsworth

Nicholas has been in the automotive industry for 5+ years working directly with large dealer groups including the Humberview Group, and at the dealership level doing business development. He is the editor in chief for Conquest Cars Canada, and is passionate about helping his clients understand and master the nuances of shopping and learning about new vehicles. Whether you're looking for pointers before visiting the dealership, or general information to help you find your next car, he believes in enabling his readers with education and confidence to help find the right deals and savings for their next car.

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