To Lease or Not to Lease?

To Lease or Not to Lease

With lease prices becoming increasingly attractive, many individuals are wondering if it is indeed advantageous to go that route.  The decision to lease or buy a vehicle depends on the terms of the lease as well as the particular circumstances of the individual. Leasing may be advantageous if you trade cars every few years and borrow the money to do so. Since leasing provides more car for less money, this may be the way to go if you want a high-priced vehicle. Leasing also can provide a business owner with more cash flow since monthly lease payments on comparable cars are generally about one-third less than loan payments. You probably want to consider purchasing the car if you intend to keep it for a long period of time or plan to drive more than 15,000 miles per year. Most lease contracts include a hefty additional  charge for every mile driven over the limit. Also, purchasing a vehicle can generate a larger initial write off if the car is not subject to “Luxury Auto” rules for depreciation. After making a decision to lease, be sure to negotiate the purchase price that the leasing company uses to calculate the lease payments and read the lease contract carefully to avoid hidden costs and penalties. Finally, comparison-shop to get the best deal available.

One Response to “To Lease or Not to Lease?”

  • […] Blancer wrote an interesting post today. Here’s a quick excerptWith lease prices becoming increasingly attractive, many individuals are wondering if it is indeed advantageous to go that route. […]

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