There are several misconceptions about leasing that you might use to improperly justify paying cash to acquire a new car. In reality, leasing is an investment tool that allows you, without immediately giving away a large number of your own funds, to have a modern and high-tech vehicle.
Not only does this allow you to potentially have a lower monthly payment relative to financing a car, but it also allows you to drive a newer vehicle for less money. If you know what you're looking for and negotiate smartly, you can save money by leasing. Here are 5 myths of leasing that you should completely free yourself from.
1. Leasing is More Expensive than Credit
This is a popular myth about leasing. The cost of leasing usually depends on many factors, such as your own contribution, the purchase price, number of payments, among others. It is important to understand that the cost of leasing a vehicle is always lower than buying for cash or on credit.
Leasing companies usually receive discounts from manufacturers due to the volume of purchases and share the discounts with their customers. Also, monthly payments may include bonuses in form of insurance, payment registration expenses, and much more. This makes leasing cheaper than credit or paying with cash.
2. I Have Nothing at the End of the Lease
The truth is that leasing preserves your liquidity. Leasing only requires a small investment of your capital when compared to purchasing a vehicle. How you use the extra money is what determines what you will actually have at the end of the lease. You may choose to invest in an asset that has the potential to appreciate or use the additional liquidity to fund other critical expenses. Leasing comes with many benefits and it's a better strategy for financial growth than just investing your money in a depreciating asset.
3. All Car Lease Deals are the Same
Some people usually believe that you will get the same vehicle lease deal from every single vehicle dealer. However, this is not the case as different vehicle dealers within the leasing industry can have unique specials and deals solely for their business. This guarantees that you will get a good deal that fits your needs and your financial plan. At Wilmar Inc., we encourage you to do your research in terms of fleet lease specials; however, you will not find a better deal and experience than ours after working with us.
4. There are Huge Repair Bills for Minor Damages
This is a popular myth from people who have never leased before. Fair wear and tear are not to be confused with damage such as impacts, harsh treatment, or negligence. End-of-lease charges only take place when the vehicle, its equipment, or accessories are not used, maintained, or looked after as originally agreed.
They merely compensate the leasing company for the cost of rectifying damage or loss if you've not sorted them out at the time of handing the vehicle back. So, there is nothing like huge repair bills for minor damages. Just ensure that the leased vehicle is properly maintained and you will never worry about extra costs.
5. I Drive Too Much to Lease a Vehicle
Leases usually work just as well for people with higher mileage habits as they do for those who are low mileage drivers. Remember with a lease option, you're only paying for the portion of the vehicle you're contracting to use rather than the whole vehicle purchase spread out over a longer financing term. A well-written lease usually takes into consideration the anticipated use of the vehicle, and this includes the number of miles. So, you don't have to worry about the number of miles because you'll discuss it when writing the contract.
For a flexible, growing, and cutting-edge business vehicle fleet, leasing is undeniably the smartest way to go. For more information about how fleet leasing can be the best possible choice for you and your business, contact us today!