What are the benefits of leasing a car?
Getting a new car is likely to be one of the biggest investments of your life, which is why being able to make affordable, fixed payments is one of the best benefits of leasing a car. With a lease, everything you pay is agreed up front. There are no grey areas on annual mileage or equity.
What happens when you lease a car?
As the person leasing the car, or the lessee, you are paying some initial fees along with monthly payments to use the car, but you don’t actually own it. Every lease agreement has terms and conditions you must adhere to and at the end of the agreed-upon term, you return the car to the leasing company.
What are the incentives to lease a car?
Preservation of cash is a strong incentive to lease. Lower Tax Bite In most states of the U.S. and in Canada, you don’t pay sales tax on the entire value of a leased vehicle as you would if you purchased. You’re only taxed on the portion of the value that you use during your lease.