Cars, especially the luxury cars have become an integral part of your lifestyle. But, today in this tough economic time it has become really very tougher for average individuals to own a luxury car for their daily commuting needs. So, for such people one of the viable options is Car Leasing. Rather than investing and buying a new car, the person can easily rent out a car which is also referred as leasing a car at much lower monthly payments. Leasing a car has several advantages compared to purchasing a new car outright. People who are looking forward to lease a car for their daily commute can look at the major benefits outlined below.
Car Leasing Guarantees Low Monthly Payments
Paying small monthly payment is always a feasible and cheaper option compared to adding up larger money to buy a car right away. You may be forced to apply for a car loan to buy a new car, but this may put you on a debt with added interest which will make a hole in your pocket by the termination of the loan. So, instead of accumulating money for years and applying for a car loan simply go for Car Leasing. Leasing a car is more affordable and gives you flexibility to afford more expensive and luxury cars against a lower monthly payments. Compared to monthly car loan payments, the total cost of car leasing is much cheaper.
Car Leasing Makes You Free from Car Depreciation
The most crucial and expensive part of motoring is the depreciation of the car’s value over the time. Most of the buyers usually check the residual value of the car to evaluate the worth of the car at the time of purchasing it. So, when you go for Car Leasing option this risk is automatically shifted to the car leasing company and you are no longer required to worry about the depreciation of the vehicle after using it year after year. You simply need to focus on how much you need to pay monthly and return the vehicle after the termination of the contract.
Car Leasing is also a viable option for businesses as when they lease out a car for their business they become eligible to reclaim VAT up to 50% which is deducted on their contract. Therefore, leasing car for their business is both money saving and tax savings instrument for a business.