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Is leasing a car really worth it? 5 advantages of leasing a vehicle

Most people will probably tell you buying a car outright is the better financial decision. You’re working towards something you’ll own entirely versus paying to drive a vehicle for a temporary period of time. On the flip side, leasing can sometimes be a more affordable option with less commitment.

Everyone’s needs and budget are different and there are pros and cons to both buying and leasing. Let’s look at some of the advantages of leasing a car in Manitoba.

Lower monthly payments. When you lease a vehicle, you’re only paying for the vehicle’s depreciation (or decrease in value) over your lease term, plus interest. Your payments will likely be 30 to 60 per cent lower than standard car payments which could give you the opportunity to drive a higher quality vehicle for less. The downside is you won’t own it at the end of the term. Some lenders will resell leased vehicles as used vehicle’s once lease terms are up, which is another reason why they may offer lower monthly payments to get them off the lot.

You can drive a better car for less money. The beauty of leasing is you get to drive a vehicle for a shorter period of time, then switch it up. If you’re someone who enjoys trying different vehicles, this is an excellent option. With a lease, you can upgrade your car to a better model every two to three years without having to worry about trading-in or selling your vehicle.

Lower repair costs. Typically your lease will cover the manufacturer’s general warranty, meaning you shouldn’t be stuck with any major repair costs. Things like oil changes won’t be covered, but necessary repairs and maintenance will be.

Tax benefits. If you select a car for lease and use it for business, you should be able to write off the lease payments as a tax deduction. If you need cars for a larger staff, leasing could help you get the most bang for your buck and save your business the most money over time.

Gap coverage. Usually all leases come with GAP insurance. This insurance protects you in case the car is stolen or is extremely damaged and the repairs would cost more than the vehicle’s depreciated value.