| You can often lease a vehicle with no down payment. As the lease is based on the value of the car's residual value your monthly payment is lower than conventional financing.
In a closed-end lease, the lessor bears the risk of a decline in market value and you have the luxury in deciding at the end of the lease whether to purchase the vehicle or return it. It is important to note, however, that in a closed-end lease, the lessee (that's you) is actually responsible in depreciation caused by excessive mileage and excess wear and tear.
If you can deduct the cost of using your vehicle as a business expense, leasing offers a valuable benefit. The IRS permits you to expense up to the entire amount of your lease payment (assuming you otherwise qualify for the deduction).
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You have ownership interest in a purchased vehicle, even though the lender holds a lien on it.
You may make permanent modifications to a vehicle you own such as adding a moon roof, running boards etc.
When you own the vehicle (whether or not you financed it), you decide how much insurance coverage is appropriate, within the limits of state law.
With a purchased vehicle you need not worry about paying for miles driven in excess of the amount permitted under the lease.
You are liable to the closed end lessor for all damage to a leased vehicle in excess of ordinary wear and tear, an issue you do not have to deal with in when you own the vehicle. |
