Lease Versus Buy
In the past, most people thought leasing was only for businesses or business owners who could benefit from the possible tax write-offs. Times have definitely changed with the increasing cost of cars. More and more individuals are realizing the benefits of leasing versus purchasing a brand new vehicle.
When you lease a vehicle, you are only paying for the portion you are using, based on your annual mileage. You do not actually own the vehicle however you do have to insure it. With leasing though, you can afford to drive a more expensive vehicle without the outlay of a lot of cash or without taking out a large automobile loan. Leases typically run from two to five years, however most manufacturers will offer special rates at certain terms, usually three years. The warranty will cover any mechanical repairs during the course of the lease in most circumstances and some manufacturers' leases even include the maintenance at no additional cost.
There is an additional bank fee included when you lease a car which varies from bank to bank, however even with this fee; the payments are more affordable than when you finance the same vehicle with a minimal down payment. When you purchase a vehicle, you pay sales tax on the entire purchase price, however when you lease, you only pay tax on the monthly payment amount. The amount needed to get into a lease is very minimal and therefore can conserve cash for those who want more car for their money.
At the end of the lease term, you have the option of purchasing the vehicle at that time or simply returning it to the bank. There are fees associated with the turn-in so Okuma offers lease buyouts which could avoid these fees and possibly provide some cash towards your next lease or purchase.
Leasing may not be for everyone; however it can be a good alternative for some. We can discuss your individual circumstance to see whether a purchase or lease would be a good fit for you.