Car leasing is increasingly becoming popular in the cuntry, owing to the convenience and affordability it promises. The automotive industry is also benefiting from this trend. Understanding the benefits of a car lease is especially important if you are someone who doesn’t want to buy a car at the moment but travels extensively for pleasure or business . With attractive advantages like low monthly payments, plenty of car options and sufficient warranty, getting a car lease is indeed tempting.

Lower Monthly Payment
Lease payments tend to be based on depreciation in the vehicle’s value during the course of the lease. This is why the car lease payment tends to be lower than the amount you pay when purchasing a vehicle. Because you’re not paying for the full value of the car, the monthly lease payments tend to be 30% to 60% lower than the monthly payment when buying a vehicle.

Regularly Change Cars
Another one of the benefits of a car lease is that now that you are paying fewer monthly lease amounts, you can widen your scope of potential vehicles to purchase. This means you can purchase a better and more expensive vehicle fitted with the latest technology and features. Not only this, when your lease gets over, you can immediately invest in another leased vehicle as you do not have to sell your present vehicle. Therefore, you will have the freedom every two or three years to drive a brand new car.

No Down Payment
One of the biggest benefits of a car lease is that no down payment has to be made when leasing a car. But this will vary from one dealer to another and you will also have to pay the first-month payment and other surcharges linked with the lease.

Fewer Maintenance Fees
Car owners are likely to lease a vehicle for the period for which the car is under warranty, so that any repairs or maintenance costs can be covered. So, you won’t have to pay any mechanical fees for the upkeep of your car. In fact, there will be some lease companies that will also include in their lease contract a routine maintenance for the vehicle. So, no matter what, you will always be covered.

Lesser Tax Burden
Another benefit of taking a car lease over purchasing a car is that since the full amount of the vehicle is paid for in a lease contract, you will only have to pay sales tax for the lease amount. The best part is that the tax amount will be spread across monthly installments, which will allow you to pay it off comfortably instead of in one go.

Thus, there are several benefits that make car lease an attractive option for funding a vehicle. Advantages like lower monthly payments, no down payment, less tax burden, lower maintenance fees and the freedom to keep updating your car are factors that have contributed to its popularity.