What are the Advantages of Leasing?Feb 27th, 2015
Top seven reasons to choose leasing
Deciding on whether to lease or finance your next vehicle can be confusing. According to Tommy Protopapas, there are several advantages to leasing that make it a great choice for many people. Here are his top seven.
#1 Lower Monthly Payments: In the case of a lease, you only pay for the portion of the car or truck that you actually use. As a result, your monthly payments are generally 30%-60% lower than they would be if you financed the same vehicle over the same term.
#2 More Car, More Often: Since you’re only paying for a fraction of the value of the car, you can get a higher priced car for the same monthly payment when compared to financing. Plus you can upgrade to a brand new vehicle every two to five years, depending on the length of your lease.
#3 Fewer Vehicle Repair Headaches: When you lease, you can cut down on unexpected repair costs by coinciding the term of your lease with the length of the manufacturer’s warranty coverage. By doing so, you’ll never drive a car that’s out of warranty.
#4 Lower Up-front Cash Outlay: Honda leases require no down payment, which makes getting into a new car more affordable and frees up your cash for other things.
#5 Lower Tax Hit: When leasing, you don’t pay sales tax on the entire value of the vehicle like you do when you finance. Instead, you’re only taxed on the portion of the value of the vehicle that you use during your lease. Plus, the tax is spread out and paid as part of your monthly lease payment instead of being paid all at once.
#6 No Used-Car Hassles: With leasing, the headaches of selling a used car are eliminated. When your lease ends, you can simply turn the vehicle back to London Honda and walk away, unless you decide to buy it or trade it.
#7 GAP Coverage Included: Honda leases automatically include free “gap” protection which pays off any gap between what your insurance company will pay out and what is owed on your lease in the event the vehicle is stolen or written-off. Regular vehicle loans do not come with automatic gap protection!
These are just a few of the advantages of leasing. If you’d like to learn more about leasing and how it can benefit you, contact Tommy today.