Some Of The Reasons Car Leasing May Be The Right Action To Take
Some Of The Reasons Car Leasing May Be The Right Action To Take
The attractions of a car lease are far greater than buying a new one, for a lot of people a at least! In the past one could pick and choose from a lot of attractive car leasing deals most automotive retailers had to offer. However, because of the low finance rates automotive manufacturers are offering in partnership with finance firms, those very attractive car lease deals have begun to dry up and disappear.
A greater number of car buyers still like to to lease a vehicles as opposed to buying one outright from the dealer. Sales of luxury vehicles show that over half the number sold are leased and as far as general vehicles is concerned, more than 20 percent of them are leased and not sold.
There are two benefits to leasing a car. Firstly when a car is leased instead of bought the owner of the lease drives a car that is always under warranty and never needs more than the regular maintenance checkup and secondly, the owner always has the opportunity to turn it in and upgrade to a later model.
So far as the dealers are concerned they prefer to lease the cars instead of selling them outright. This is because they are constantly in touch with the buyers who regularly want to upgrade or renew their lease. This leads to a better rate of loyalty for the dealers.
It is not beneficial for everyone to lease a vehicle. It is best for those people to lease a car if they are claiming it as a business expense. Ensure that your business allows for deductions on car lease expenses. Also ensure that the mileage in the lease matches your requirement.
A lot of the car leas dealers place a strict limitation on the mileage of the vehicle being leased from them. This could be 12 or 15 thousand miles a year. Exceeding this limit could lead to costly penalties that could be as high as 25 cents a mile. However, if one were to suspect that the mileage was going to be exceeded they could purchase extra miles from the dealer at discounted rates.
Then comes the point of returning the vehicle. Leased vehicles must be returned in excellent condition or else the depreciation costs could take the total cost of the lease much above what a new vehicle cold have cost. SO ensure that the vehicle is in very god condition hen returning it to the dealer.