When Does it Make Sense to Lease a Car?

September 5th, 2018 by

Man giving keys to another man

Leasing vs. buying: there are lots of competing facts out there, and things can get confusing real quick. So, when when does it make sense to lease a car? INFINITI of Naperville is here to break it down so you can make an intelligent decision for your situation. Let’s take a look at the facts.

Leasing vs. Buying

Think of it as renting versus owning. When you finance your purchase of a vehicle, you’ll own it at the end of the term. When you choose a lease, you’ll have to turn it in when the lease is up. So, when exactly does it make sense to lease a car?

When it’s a business vehicle. That’s because it’s easier to manage accounting expense deductions because you’re allowed to deduct your lease payment. It’s more complicated to show actual interest paid and depreciation allowances if the business owns the vehicle. Check with your accountant to see which option gives you the larger tax deduction.

When you don’t need it for the long haul. If you’re in a situation where you’ll only need a car for a year or two and don’t want to have to buy it now and sell it later, leasing might be a much simpler option.

If the lease payments are lower than loan payments. Many lease payments are lower than loan payments, and that’s what makes leasing so tempting. Dig deeper and compare down payments and the total money you’ll be spending out of pocket to compare the true cost.

When you find an excellent price. Sometimes you can find exceptionally low lease rates, especially on luxury vehicles that maintain a higher value at the end of the lease term. These vehicles are attractive to dealers because they can be sold as certified pre-owned vehicles when the lease is up.

You just like to drive new cars. If you like driving new cars and don’t mind always having a monthly payment, then leasing is ideal.

Competitive Car Financing at INFINITI of Naperville

If you’re stressing out about your car financing, just take a deep breath and relax. INFINITI of Naperville is here to help you make the decision that’s right for you. Whether you lease or buy, our financing team will make it a smooth and simple process. Visit INFINITI of Naperville today! We’re easy to get to from Lisle and Chicago.

Posted in Finance, Tips