Leasing is one of the most practical arrangements available today. It is heavily preferred by people who are looking to save money or simply get the best bang for their buck. Fortunately, you can lease pretty much everything these days – from luxury handbags to designer clothing, industrial equipment, and cars.
And when it comes to leasing cars, more and more Australians are opting for it instead of making an actual car purchase. Regular folks and those who own growing enterprises deem it the more cost-effective strategy for meeting their transportation requirements.
This arrangement also offers a bunch of other benefits that buying a car does not. These unique advantages are the drivers behind their decision to just lease instead of buying a car.
If You Are a Business Owner…
Leasing a car is not as big a financial investment as purchasing a vehicle. The upfront costs are fewer and lower.
Say, you need a vehicle to make your business more mobile through delivery services and by allowing your employees to travel to different places for work with ease. You can save more money by acquiring a vehicle for operations through a car lease arrangement because of these three reasons:
- You can avoid paying for the full actual price of the car.
- You can avoid paying taxes, and other fees typically attached to a vehicle purchase.
- Monthly payments are fixed.
Other perks you can enjoy are:
- More car options to choose from due to the lower cost of leasing.
- Versatility for your operations especially when you take advantage of a novated lease. With this type of arrangement, your employees who need a vehicle can pay for a car lease more easily. By using the employment agreement to enable this, you can deduct their lease payments from their income, which will also allow them to save money on tax returns at the end of the year.
- Faster implementation of growth and mobilisation plans. Quite often, businesses put off implementing their growth strategy for fear of creating a big dent in their finances. In a competitive business world, such delay typically translates into a loss of opportunities for better and greater profitability. By choosing to lease vehicles needed for your business operations, you can grow your enterprise faster.
If You Want to Provide Your Family a Good Car…
A car lease is also an ideal option for personal and family use. If you choose to lease, you automatically get a larger selection of vehicles based on your budget. You can be certain that you are not just settling for any car, you can choose the one that you truly want instead of an affordable second-hand clunker. You can actually get a brand new vehicle.
Here are other reasons why it is a smart option for many:
- You do not have to worry about the depreciation of the vehicle.
In a car lease, you only get the car for a specific period of time. Thus, you do not have to think about value maintenance too much, which a lot of car owners spend money on in preparation for the possibility of reselling. When the lease period is over, all you have to do is to return the unit with the key.
- Lease payments are flexible
You can pay for lease payments in advance (which you can do hassle-free through mobile money transfer) and take advantage of cash deductions. Or, do so to improve your personal financial management scheme.
- You can eventually purchase the car
If you end up loving the car, you may opt to buy it. At the end of the lease contract, you just have to pay the residual value or final instalment on the lease and take ownership. You may even get to negotiate a really good price if you haggle well enough.
- It is easy to trade in the car
If the contract allows for it or you are able to work out an arrangement with the car leasing company, you can easily trade in the car you have used for a newer one to better fit your needs or new requirements.
In this day and age where a lot of people prioritise financial security, it is imperative to shift mindsets from conventions and explore alternative solutions such as a car lease. Exploring different financial arrangements can prove completely worth it in making your life more comfortable and simply easier.
Rob Chaloner is the Founder and Managing Director of Stratton, and is passionate about smarter ways to buy and finance cars. With Stratton, he’s working to help Australian buyers disrupt the traditional car buying, financing, and insurance markets through smarter products and online services.