Leasing vs. Buying a Car

In simple terms auto leases are designed for people primarily concerned with using a vehicle, versus those wishing to purchase or own a vehicle. But there is no simple answer to the question of whether to buy or lease a car; it depends on each specific situation. There are financial considerations but just as importantly there are your own personal priorities. Let’s examine some of these.

If you are evaluating the 'lease or buy' decision a good place to start is to write down answers to the following questions:

• Is having a new vehicle every two or three years important to you?
• Is the type of vehicle you drive important?
• How important is it to you to own a car?
• Do you want lower up-front costs and no down payment?
• Do you want to avoid major repair risks?
• Are you happier owning a vehicle for a long period of time?

Financial advantages of auto leasing

• 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%
• No Down Payment
• Gap protection (to prevent loss due to a totaled or stolen vehicle)
• Security deposit usually not required
• Drive away paying only the first payment, license and registration fees
• Monthly payments on leases are generally lower than on comparable auto loans

The human factor - intangible reasons for auto leasing

• The type of car you drive has an impact on your business (realtors, business people)
• Leasing allows you to get more car for your money…you can step up to a better model
• You are passionate about driving your car, not maintaining it
• You enjoy having a new car every two to three years
• You plan on having permanent monthly payments whether leasing or buying

More on 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.

Other useful auto leasing information

Still deciding on a lease versus buying a car?

Get the facts on leasing vs. buying so you can make an informed decision

Why should I lease my auto from TransWorld?

There are lots of leasing companies. Find out why we are a cut above the rest

Should I use an independent auto lease company?

What you should know about dealer leasing versus independent auto leasing