Why Leasing Might be Right for You!
Leasing is one of the most misunderstood options within dealerships. Over time, it has gained a bad reputation because of common misconceptions. What most don’t know about are the end of term options! At the end of your leasing term you may choose to:
1. Drop off the keys and walk away.
2. Trade it in for something new.
3. Buy-out the remainder (or finance) to keep or sell.
When considering a lease, it’s crucial to go through your contract and compare it to your vehicle use in the past. Will the mile allowance be enough? (if not, you can adjust or buy it out at the end of the term), is the buyout amount reasonable? What exactly is covered under warranty? Is there any other coverage I’ll need to include? A leasing contact is not a one-size-fits-all model, you can adjust it to suit your driving needs.
5 Reasons To Lease:
- A brand-new vehicle every 3-4 years
- With technology and EV advances every year, it doesn’t take long for your current ride to fall behind the times. If you find yourself upgrading within that timeline, leasing could be a great option.
- Drop the keys off if the value has gone down
- With your lease contract you’ll be presented with a buyout amount and drop off date upon signing. If you choose, you can always buy out the remainder of your lease if you think it’s worth more. But you also have that added security of knowing you can walk away from something that isn’t as valuable as you thought.
- Lower monthly payments and less tax
- Leasing typically gets you in and out with less money down and lower payments. Because of the shorter term, you only need to pay for a percentage of the sales tax, which is roughly half of what it would have cost to purchase!
- Factory Warranty
- With a lease, the entire term is covered under factory warranty. No need to worry about and budget for unexpected repairs with your new vehicle.
- Ride in Luxury
- Most luxury vehicles are leased, banks won’t always finance more expensive vehicles. Leasing allows you to afford a nicer vehicle than what you could with financing.
Common Misconceptions about Leasing:
- “If I lease it, I don’t own it”
- What most don’t understand is, unless you’re paying cash, you don’t technically own your financed vehicle either. Leasing can be an affordable option for someone wanting a new vehicle often, with the added bonus that you’re not buying into any possible negative equity. If you find yourself often trading in your vehicle before it’s paid off, leasing would be a great fit!
- “I put too many miles on my vehicle”
- As mentioned before, the mile allowance is something that can be adjusted. Not everyone drives the same amount, so not everyone should be paying the same! If you find that you went way over what was allowed in your contract, you have options to pay the penalty or buy it out. If you choose the buyout option, the mile allowance doesn’t apply- no need to fret!
- “It seems too good to be true, what’s the catch?”
- Like anything in life that seems like a good fit, it’s normal to question it! Car sales associates have come a long way from the past sleazy reputation. More than just the sale, customer loyalty and satisfaction are what dealerships value the most. Talk through the options with your salesperson and be honest about your needs. Leasing is financially and personally beneficial more than most realize.
- “I use my vehicle for work and won’t be able to use the lease as a tax deduction”
- The IRS and Service Canada both include vehicle leases on their list of vehicle tax deductions! Just like a financed vehicle, a portion of your leased vehicle can be deducted from your taxes if you use it for your business. In some cases, you can even claim vehicle depreciation for your lease.
With the multitude of options, leasing can be a great fit for many drivers out there! Talk to a member of our sales staff at any of our dealership locations, they would be more than happy to walk through your options and find the best fit for your driving needs!