Avis Lease

In these times of financial crunch & global recession, the younger generation is becoming financially erudite. Their intent on making sound financial decisions that don’t become a burden on them later.
Buying a car is often one of the first financial decisions that people have to make. But, the real question is whether to buy a brand new car on loan, buy a used car at a much lower price, or to lease a vehicle.
In most cases, buying a used car that’s at least 3-4 years old & leasing a new car are often the best choices.
Below, we bring you a few reasons why leasing a car is a significant financial decision:
 
 
1. Leasing gives you choice & flexibility
 
We live in a time where people prefer the availability of choices over a long-term commitment, & the same is reflected in our buying choices. Buying a car often involves a prolonged commitment to maintenance, wear & tear repairs & other minor as well as major issues. Living a lifestyle where we hardly have time to cater to our personal needs, buying a car becomes a strict no-no for the younger population, especially during their settling-in-a-career-phase.
With leasing, you have a choice to select the car you want as well as the flexibility to change it whenever you like. Plus, most vehicle leasing services’ leasing agreements give you maintenance benefits, thus taking the burden off of your shoulders.
 
2. Leasing involves lower monthly payments than auto loan EMIs
 
Another reason why leasing a car is better than buying a new one, is that the monthly payments on leased vehicles are often lower than monthly EMIs on auto-loans. This is true even after the vehicle leasing service includes the maintenance & other miscellaneous costs. This is because in leasing a car, unlike buying one, you pay only the depreciation amount instead of the total car amount. This total amount is often much less, around 1/4th of the actual cost of the car, & thus you pay lower monthly amounts. In any case, unless you cross the threshold of no. of km to drive as mentioned in the leasing agreement of your vehicle, the monthly amount you pay on your lease is much lower than most auto-loans EMIs.
 
 
 
3.  Leasing incurs lower maintenance costs
 
Another benefit of leasing a car is that you often spend much less on general maintenance & repairs than you would otherwise. Most vehicle leasing services agree on a certain no. of km you’re allowed to drive your leased car before you are slapped with additional charges. These km are well within annual maintenance thresholds.
This lower no. Of km mean that your car will undergo much less wear & tear than regular vehicles, thus needing fewer warehouse trips & reduced maintenance costs! Isn’t that great?
 
 
4. Leasing brings with it many tax benefits
 
If you’re self-employed, a self-made entrepreneur, or are using your leased car for business purposes, you can ask for tax sops that are in place to promote young entrepreneurs & start-ups.
As a general rule, some parts of your monthly leasing payments are tax-deductible. It largely depends on the leasing agreement struck between you & the vehicle leasing services, but most of the tax benefits can be levied on professional usage of your car.
 
So there you go. These are some benefits of leasing a car. Much depends on the vehicle leasing service & leasing company you choose. It’s essential to go through the leasing documents thoroughly to get a better idea of the benefits you’ll be receiving through leasing a car. Happy leasing!