Auto Moto Center

There are many people wondering whether to finance the purchase of a new car or to lease. Vehicle leases offer many advantages. For instance, one does not have to worry about resale value when one is leasing a car.

When a new car leaves the showroom, the auto loses about fifty percent of its resale value. But, the person who is leasing his car does not worry about depreciation because he will return the automobile to the lessor at the end of the contract period. If the contract period is less than thirty six months, the auto will always be under manufacture warranty during the time the lessee drives the car.

When one buys a new car, he has to pay the sales tax on the purchase. When one is leasing, the sales tax is calculated on a monthly basis, so the tax bite is not as severe. The person who is leasing his car, does not usually have to worry about repair costs.

It is important to know how many miles a year the car will be driven. Most leasing agreements allow the lessee to drive the car for up to fifteen thousand miles a year, but more miles can be negotiated. However, if the agreed upon amount of miles is exceeded, there will be money penalty.

Even if one is leasing an auto, one is still required to purchase insurance in order to protect the leasing company's interest. Some insurance companies offer special rates on leased cars so it is worth shopping for the lowest rate. Some leasing companies require lessees to choose from a list of insurance companies.

A lot more people today, than in the past, consider car leasing as a viable option as opposed to buying a car. As the price of cars continues to go up, so does the number of people who decide to lease. Some drivers claim that they will never again buy a new car when they can lease.