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Wednesday, October 5, 2011

Why It Is Right To Opt For A Car Lease Option

By Paul Smith

The idea of a car lease option is becoming more popular by the day. It is a great way to drive a new car without purchasing it outright.

To get a car this way is very easy. It means that you rent one from a finance company that has already purchased the car. When the term expires, you have the option of paying off the vehicle or trading it in for a newer model.

The benefits of going this route are plenty. Say you are a small business owner but your car is rather old. You need to make an impression with your clients in order to land those important orders. By leasing the latest model of your favorite car, you will be seen as successful, thereby giving you a change to seal the deals.

An added bonus is the low deposit required. With a normal purchase deal, you would have to give a huge deposit to get finance. So spending your money on a small deposit on a lease option gives you more cash in your pocket to invest some place else.

You are also going to have lower monthly payments. This means that you actually pay for the depreciation of the vehicle and not the total price. Having a restricted monthly budget therefore, might help you get the dream car you have always wanted.

Of course, if you can't wait to drive that latest model, you can opt to trade-in your existing vehicle. You do not have the added headache of selling the vehicle because it is not yours.

There are terms that start from 2 years and end at 5 years. In this regard, you should do some research to find the best deal which is going to suit your pocket.

Many businesses also lease their vehicles for those special tax breaks. Buying the vehicles outright, especially if they have a large fleet, does not make financial sense, because the vehicles are going to depreciate by the month. Leasing allows them to claim from the tax man and they do not have to worry about owning old vehicles.

There are many options when considering car leasing today. When you get to end of your contract, you can trade-in in your vehicle and start the process again. The nice thing is that you are under no obligation to purchase the vehicle and you can drive a new car every second year.

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