How Leasing a Vehicle Can Save You Money
These days, you will find that an increasing number of motorists are leasing their vehicles instead of buying them. This is for good reason too as there are numerous benefits to leasing, including a handful of financial advantages. With this in mind, this post will look at a few of the main financial benefits of leasing and why it could prove to be the best option when in the market for a new vehicle.
Vehicle Expenses on the Rise
First, you need to consider how practically all motoring costs are on the rise and this means that motorists need to be smart when it comes to their finances. In addition to rising costs of new and used vehicles, motorists are also battling rising petrol costs and higher insurance costs (as well as non-driving costs during a cost of living crisis). Research shows that 31% of drivers are currently driving less to keep costs down and 20% are having to dip into their “rainy day” savings to keep their car on the road.
How Leasing Can Save You Money
So, how can leasing a car save you money? There are a few ways that leasing can save you money and this makes it a great option for motorists looking to keep their costs down.
Lower Monthly Costs
One of the primary ways that leasing is cheaper is that you will usually have lower monthly payments compared to a car purchased on finance as you are not technically paying to purchase the vehicle and it will be returned at the end of the agreement. The downpayment is usually lower than purchasing too.
The cost of car maintenance can be a concern for a motorist as work can be expensive and you might also have an unexpected issue arise that could be hard to afford. When it comes to leasing, maintenance costs are usually covered in the monthly payment so that you do not find yourself footing the bill.
Potential Tax Deductions
You could also benefit from tax deductions if you are leasing the car and using it for work. This is because leasing a car is an allowable expense, but you will want to choose a car with low emissions (or an electric) to claim all of the rental payments.
No Resale Worries
Another important financial benefit of leasing is that you do not have to worry about the resale value as you simply return the car at the end of the agreement. Cars can lose a third of their value after a year and over half after three years, so this means that you are taking a massive financial loss if you buy a new car and sell it down the line.
As you can see, leasing a vehicle makes a lot of sense and it is a good option for motorists in 2022.