How does car leasing work?
question posted by Donnie on January 13th, 2009 01:56BE THE FIRST TO ANSWER THIS QUESTION!
Car leasing would not spare you of the maintenance expenses, like registration of the car, insurance issues, tire changes and so on. In my opinion, in the end, you’ll be having the same expenses, so it’s your option.
Well it depends. If you need new and reliable transportation for your business car leasing is one way to go. Your salespeople can enjoy new cars and you won’t have the added cost of vehicle repairs. If something goes wrong the leasing company will make sure the cars are repaired. Also you would receive tax deductions from the cost of the leases in tax benefits.
Certainly there are. The lower payments you will have to pay when car leasing is one. The fact that except for oil changes any repairs that need to be performed are paid for by the dealer that you leased the car. And don’t forget you are driving a brand new car! The only disadvantage to leasing is you don’t own the car at the maturity of the lease.
Many times the cost of car leasing is less then what you would have to pay on a sales contract purchase. When you lease a car the lease is not based on purchasing the car and so the month to month payment is going to be lower. The reason it will be lower is that the payment is based on only a partial percent of the actual vehicle value and not the entire purchase price. The remainder of the car’s value after the lease is stated in the contract.