The Benefits of Leasing a Car Could Land You in a Leased Vehicle at Ganley Ford West in Cleveland, Ohio

The question of whether to buy or lease a vehicle comes up often. Consumers clouded by confusion commonly wonder about costs. Others with borrowed opinions fear dealer restrictions on a leased vehicle. So to clear things up, the experts at Ganley Ford West in Cleveland, Ohio are sharing the benefits of leasing a car. Facts about payments may interest couples in Euclid, Ohio. And tax perks will likely pique the interests of individuals in Independence, Ohio and companies in Rocky River, Ohio.

To begin, let’s clarify the key differences between an auto purchase and an auto lease. The first, and most obvious, is ownership as an auto lease is basically an extended rental. Where a financed auto purchase has a loan duration of 36 to 72 months, an auto lease has a term of six, 24, or more months. At the end of the loan, consumers ideally own vehicles that are paid in full. At the end of the lease, vehicles are returned to dealerships.

Giving a leased vehicle back is one of the benefits of leasing a car. It lets people who like having new vehicles satisfy their shiny desires without being bitten by vehicle depreciation. As the experts at Ganley Ford West explain, the average new vehicle loses 20 percent of its value in the first two years. Someone looking to trade in a purchased vehicle two years later would likely be upside down, or owe more than the resale value. Someone ending a two-year lease, however, would be unaffected and free to shop for their next new car.

These two shoppers would have drastically different down payment options. The upside down consumer would likely have to pay at least 10 percent of their next vehicle’s cost. And the difference between their trade-in’s value and loan balance would either come from their pocket or be rolled into their new loan. Whereas the lessee could get a brand new vehicle in exchange for little or no cash since the benefits of leasing a car include minimal down payments, if any.

Everyone in Euclid who prefers to protect their cash reserve may find the decision to buy or lease dependent upon monthly payments. It’s certainly a factor for private shoppers in Independence and corporate buyers in Rocky River who would rather accumulate funds than empty accounts. And as lease payments are based on approximately half of vehicle prices whereas the full amounts are factored into loans, monthly lease payments are inherently less.

Some may say the buy or lease debate can end with payments. But the benefits of leasing a car continue to include tax breaks. First, on the local level since sales tax is only applied to actual lease payments versus the full sticker price. And again at the federal level for people leasing work vehicles as well as all leased vehicles in a company’s possession. The federal tax break can seal the deal because it allows monthly lease payments to be deducted as a business expense.

But before you consider yourself sold on vehicle leasing, the team at Ganley Ford West in Cleveland insists that you know usage restrictions do exist. Nowhere near as binding as the rumors you may have heard yet relevant to efforts to keep you fully informed. A leased vehicle is, after all, intended to be leased or sold to someone after you turn it in. So mileage allowances averaging 12,000 annual miles are typically included in lease terms. As are agreements that excessive wear and tear do not occur.

Now that you know the baseline benefits of leasing a car, visit www.ganleyfordwest.com to view available vehicles. And we say baseline because there are more perks than we can post here – like lease obligations don’t show up as debts on credit reports. Families in Euclid, Ohio and businesses in Independence, Ohio and Rocky River, Ohio may find that tidbit relevant to their future plans. As they would other facts that make the decision to buy or lease depend upon each shopper’s situation. To determine whether a leased vehicle is the right new vehicle for you, call 216.941.9800 or stop by Ganley Ford West and discuss your details with an expert.

Ganley Ford West
16100 Lorain Avenue
Cleveland, Ohio 44111
216.941.9800
www.ganleyfordwest.com