Frequently Asked Questions

Q. Why Choose TransWorld Leasing?

We are not affiliated with a manufacturer - WE REPRESENT YOU!
We can provide the vehicle you want - any make, any model
Leasing available on most pre-owned vehicles
Better Pricing: we find the vehicle and use our buying power to get you the best price
Fast Lease Quotes instead of sitting for hours at a dealership
Equipment Leasing including medical, oil services, airplanes, and more
Let a TransWorld Lease specialist explain the tax benefits of our Customized Lease Programs
Customized Leases:
- Variable Mileage or Unlimited Mileage
- No pre-payment penalties and simple interest payoffs for the client that likes to drive new vehicles more often
- Variable Terms from 12-60 months

Q. WHY LEASE?

Very few of the things we consumers utilize these days illustrate this point as well as the personal automobiles we use. What else can you think of that depreciates as much and as fast as an automobile?

There are several factors to consider before deciding between leasing or buying a new car or truck.

Leasing Can be less taxing on your budget!
If you use a vehicle for business, the tax laws can make a beneficial impact on your taxes.
Lease payments are deductible up to 100%. (Depreciation has limitations)
Fuel, maintenance and insurance are deductible up to 100%

Other Opportunities Leasing Can Provide

No Down Payment
Gap protection (to prevent loss due to a totaled or stolen vehicle)
Leasing allows you to get more car for your money… you can step up to a better model
Security deposit usually not required
Drive away paying only the first payment, license and registration fees
“If it appreciates, buy it. If it depreciates, rent it.” - J. Paul Getty III

Leasing vs. Buying

TransWorld leases meet F.A.S.B. accounting rules and the I.R.S. rules to qualify as operating leases. This is important because the tax benefits are better for you or your company when leasing vs. buying. Leasing also offers off-balance sheet financing for businesses which can help financial statements look stronger. Use your capital to grow your business and not tie it up with long term debt while at the same time keeping your current line of credit available.
If you use your vehicle in business, leasing will offer better tax benefits. Our T.R.A.C. and open-end lease programs offer the benefits of unlimited mileage, no pre-payment penalties, lower residuals, and offer simple interest payoff methods. Many large corporations use these types of leases to obtain their fleet of vehicles. TransWorld brings this lease to the business owner and/or person who uses their vehicle for business and would like to take advantage of these benefits.

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What is leasing:

Technically, leasing is a long term rental. Lease payments pay back the difference between today's cost and tomorrow's value or easily explained as paying for the amount of the vehicle's value that you are going to use.

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Simple. A leasing company makes an educated guess on what a vehicle will be worth at a certain age, the condition it should be in and most importantly how many miles are on it. This value is known as the residual.

This is why they enforce mileage restrictions on a lease. Many people consider this a negative about leasing, but in reality, any one who owns a car, pays for excess mileage. If you own a car and drive it more than average, you will pay, in resale value, for those excess miles. At TransWorld, we build a lease to give our customers as many miles as they need, within our guidelines.

Back to the residual. This future value, placed at the end of the lease, is removed from the capitalized cost (amount financed) at its present value. You do not pay for this part of the vehicle in a lease.

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This is why leasing is cheaper.

Once you have purchased you new car, your next question might be "what will I be able to sell this car for in the future?" By having a predetermined residual, set by the leasing company, this worry is taken away. At the end of the lease, you may be able to walk away from the residual value and turn the car in leaving the bank with the obligation of selling it and possibly taking a loss. This loss, for one, is a reason why Chrysler is no longer leasing. They could not afford to take these losses anymore. They are now offering longer finance terms and lowering interest rates to give lease like payments, but the resale burden has been put back on the customer. Predetermined residuals have saved leasing customers billions of dollars at lease term end.

There are many variables on what could cause a car to lose more value than expected. Gas prices, body style change, and the economy are just a few. In a lease, the customer can be shielded from these unknowns.

In short, a lease is like getting your trade in value given to you up front, which takes away a lot of worries.

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Rick Cash