Leasing a Car 101: 5 Key Benefits of Leasing a Car

hand holding car key in front of row of cars

Are you thinking about getting a new car?

When it comes to buying a new car, there are a lot of decisions you have to make- Will you buy new or buy used? Should you buy a four-wheel drive or two-wheel drive? What color and brand should you choose?

If you’re not sure about what kind of car you should buy, leasing a car is a great option.

Leasing is a good idea if you’re not quite ready to buy. Check out this leasing a car 101 guide to learn about the top benefits of leasing a car.

1. Avoid Depreciation Costs

One of the biggest drawbacks of buying a car is that from the moment you drive the car off the lot, it starts to depreciate in value.

By the time you’re ready to sell your car and move on, it’s worth a lot less money.

However, if you choose to lease a car, you’ll never have to worry about its resale value. Therefore, if you think you’ll be changing your car frequently or will only be using the car for a short period of time, leasing is definitely the better option.

2. Low Monthly Payments

If you choose to lease a car, your monthly payments will be much lower.

In general, you’ll pay 30 to 60 percent less in monthly payments for a leased car. Not only does this allow you to drive a car that you otherwise couldn’t afford, but it also means that you can put all the extra money you save each month to good use.

For example, you could save for a vacation or save for a house.

3. Skip the Hassle of Selling

Whether you sell your vehicle privately or you trade it in at the dealership, selling a car can be a huge hassle.

You have to take flattering photos of the car, spend time and money tuning it up and upload photos and info to car sites, and negotiate with potential buyers.

The great thing about leasing a vehicle is that you don’t have to deal with any of this. Once your contract is over, all you need to do is turn the vehicle in and voila! The whole process is over.

4. Tax Benefits

If you’re planning to use the car for business purposes, then you can typically write off the entire lease as a tax deduction.

And, even if you don’t own a business, a lot of states only tax you for the “usage” portion of the lease. This means that you don’t have to pay taxes on the entire price of the vehicle. In the end, this can easily save you a few hundred dollars in taxes.

5. More Vehicle Choices

Last but not least, you’ll have more vehicle choices when leasing a car. This is because when leasing, you don’t have to worry about the vehicle’s longevity or practicality as much.

This is because, for the first 2 to 3 years, most cars won’t have any major issues.

Therefore, a luxury lease, such as a BMW540i lease, may not be out of the question.

Leasing a Car 101: Are You Ready to Lease?

As you can see from this leasing a car 101 guide, leasing offers many benefits.

Now, all you need to do is select a car and sign some papers and you can hit the road in your newly leased vehicle!

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