When you lease your first car, you do not pay the full value of the car. You only pay for the portion of the value of the vehicle that is depreciated over the term of the lease, plus the financial expenses that the company pays for the transaction and can be equalized with interest on a car loan. This means that if you do not want to keep the car and you want to upgrade your wheels from time to time, leasing may be the solution for you.
A chance to buy the car:
When leasing you always have the opportunity (at the end of the rental period) to buy the car. In this case, the payments you make, which would otherwise look like a car rental, are considered part of the purchase price of the vehicle. Therefore, you only need to capture less than the price of the car. Vehicle market. at the time of purchase (remember that this is a used car at this time).
This entire process brings enormous savings on many levels. Although it may cost more than a long-term car loan, you pay less in the short term. The amount of monthly payments for a car loan is much higher than the lease amount, since you pay a share of the purchase price of the vehicle plus interest, while the lease pays only for the depreciation of the loan value of the car plus vehicle income. Financial institution.
In addition, tax benefits must be considered. The car is not your property and you do not pay the total price of the car for the sales tax. In addition, if you use the vehicle for your business, you may be able to deduct some fees from your taxes. You need to get in touch with your accountant for a thorough analysis, but you must first consider significant tax benefits when renting, especially when car leasing for young drivers who will have limited budgets.
Discount on taxes:
The taxes payable decrease because you only have to pay for the value of the car you use. In addition, the interest amount is spread over several months, resulting in a lower monthly payment. In addition, since you benefit from a tax deduction for renting a car, you can save a few hundred dollars.
You get the rental car with the manufacturer’s full warranty. This ensures effective maintenance when needed. If you rent the car for a short time, you probably have less inconvenience in terms of maintenance.
Better value vehicle maintenance:
Since the number of monthly payments is significantly lower, you may be able to afford a higher priced and therefore better vehicle. But above all, since leasing takes only a few years and cars are almost always new, the maintenance costs are not high, as new vehicles are rarer than older ones. If the vehicle is defective, you can also request replacement at any time as rental conditions require a faultless vehicle.
Leasing your first car is a sensible decision. leasing a car would prove handy because of lower cost, easy availability and other benefits.