If you’re new to car leasing, you could have several misconceptions about leasing a vehicle. Here’s a few of the biggest ones:
- Leasing a new car costs more than purchasing it. With a leased car, you pay a down payment, along with low monthly payments until your lease is up. For example, a 2013 Honda Accord EX, costs $24,500. You can get it from the dealer at $334 per month. For the standard 36 month lease, that’s a total of $12,024. Even after insurance, a down payment and the monthly fees, it’s much cheaper than purchasing.
- There’s equity in buying, but nothing at the end of the lease. Not the case. According to Best Buy Auto: “Leasing offers the potential for cash value at the end of its term as well: by keeping your equity out of the vehicle. The cash flow derived from no or a lower down payment and lower lease payments during the life of the lease, together with interest, can produce an amount roughly equal to the used vehicle’s value at the end of a conventional loan.”
- Dealerships tack on additional expenses at the end of a lease. If you abide by your contract, no extra fees are added on for excess mileage or wear/tear.
- Only businesses get a tax break with a leased car. According to Kiplinger, Tax laws do allow businesses to “deduct monthly leasing payments as an expense. But individuals get a tax break, too.” In most states, you pay sales tax only on the monthly payments, not the vehicle price. For example, in a Nissan Altima, you’d owe taxes on about $8,264 in payments rather than the $21,403 vehicle price.
- Once you sign a lease contract, you can’t get out of it. This is why online lease marketplaces like Swapalease.com exist. Swapalease.com allows you to take over someone else’s lease. Or if you want to get rid of your lease, you can give the responsibilities – and the contract – to someone else on the online marketplace.
For more information on finding the best car lease deal or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.