Why Lease and not buy a Car!
The debate goes on â€“ Should you buy a car or just take it on a lease from a leasing company? Well, apart from the instantly palpable plus point that you can easily change your car every few years for a new and latest model as per your whims and desires; car leasing and contract car hire brings many more benefits along with it. But this is not to say that purchasing a car is considered totally lamentable, so to speak. Each option brings its own pros and cons with it. So hereâ€™s a look at what works in favor of car leasing, like say a Mercedes Benz lease, as opposed to opting to purchase it for yourself.
Well, it is obvious that taking a car on lease will not block your cash flow as it does not require a hefty down payment as in the case of a car purchase. Some leasing companies may still insist on a security deposit, but this will also be much lower than what you have to dole out when opting for a car loan. Even the monthly leasing
costs will be significantly lower than the installments that you will have to pay for the car loan, as you are only paying for using the vehicle.
Furthermore, you also have the option of opting for a contract car hire which will cover the regular car maintenance charges as well, obviously for a little higher fee. Another benefit to business car leasing is that the lease expense gets classified as a business expense and is thus deducted from the tax payable.
While car buyers can count on having a residual value at the end of the lease period, lessees are immune to the huge headache of selling off an old vehicle for a good price. Yet, they always retain the option to buy out the leased car at the end of the lease period.
So while it does make sense to lease, you will definitely be burdened with the precipitous challenge of maintaining the vehicle in excellent condition. No bumps, scratches, dents or upholstery damage is permissible as you are obliged to return the vehicle in a reasonable condition or bear additional charges which can be quite exorbitant. Additionally, you will be bound by mileage limitations and will face a steep penalty for crossing the stipulated limit. And yet, you will have nothing to show for your trouble as the car has slipped through your fingers forever.
So, while car leasing will definitely save you a lot of money, time and hassles, you have to carefully weigh both the alternatives before making a decision to go either way. But always keep in mind that with the help of a car lease, people can actually afford to use luxury vehicles - like a Mercedes Benz lease â€“ which they could otherwise never even dream of buying!
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