Leasing often provides greater flexibility compared to purchasing a vehicle. Explore some of the advantages of leasing your next commercial vehicle.
- Lower Upfront Costs
Leasing a vehicle requires less money upfront compared to purchasing the vehicle outright. Many dealers offer financing options when you buy a vehicle. However, you are still likely to need a large down payment.
Down payments for a new vehicle can cost up to 20% of the purchase price. Leasing allows you to drive off with a vehicle at a much lower price.
- Lower Monthly Payments
Leasing may result in lower monthly payments compared to getting a loan to buy a vehicle. The monthly payments for leases are determined differently compared to standard loans.
You are financing the depreciation of the vehicle instead of the purchase price, which often results in a lower monthly payment.
- You Do Not Need to Resell Your Vehicle
Leasing allows you to avoid the difficulties that come with trying to sell a used vehicle. The vehicle goes back to the dealer at the end of the lease.
Instead of negotiating a trade-in price or finding a buyer, you simply take the van back to the dealer where you obtained the lease.
- You Can Upgrade Every Couple of Years
Most car leases have a contract length of 48 to 60 months. If you choose a closed-end lease purchase, you can upgrade your vehicle every few years without a major hassle.
If you choose to buy a vehicle, you are likely to deal with repairs after four or five years. Leasing helps you avoid those challenges by swapping out your vehicle with a new one periodically.
- Choose From a Variety of Lease Options
Leasing a vehicle may provide a more cost-effective solution compared to buying one, depending on your financial situation. For example, you can often find great deals on a Ford Transit Custom lease.
You can also find different leasing options, such as hire purchase (HP) and lease purchase. Hire purchase is a financing option that allows you to eventually own the vehicle. A portion of your payments goes toward the price of the vehicle. At the end of the lease, you can pay a purchase fee and own the car.
A lease purchase involves paying for the depreciation of the van. At the end of the contract, you return the vehicle.
No matter what type of leasing option you choose, you should also compare vehicles. Think about the total capacity you need, the number of seats, and other features to ensure that you make the right choice.
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