1. Drink champagne on a beer budget.

   For many of us, the choice to lease or buy often comes down to one thing – the monthly payment. The simple fact is that monthly lease payments are pleasing to the pocketbook. The short-term monthly cost of leasing is ALWAYS significantly less than the monthly cost of buying. For the same car, at the same price, on the same terms, monthly lease payments will generally be between 30% to 60% lower than loan payments.

   Perhaps your monthly budget demands a Ford Focus, but you’re image demands a Mini Cooper. We understand. If that’s the case, then leasing may be the best option for you.

   Consider this example: You have your eye on a 2005 BMW 325Ci Coupe, 2.5 Liter, DOHC, incline 6-cylinder, 215 HP, Remus exhaust, vanity plates, the works. If you cut a $35,000 deal on a well-equipped model, and get a 6.5%, four-year loan, the monthly payment will be a whopping $830 – about as much as the 30-year mortgage payment of a $160,000 house. Ouch.

   Stretch the car loan out over five years, and you’re still facing a monthly payment of $684.

   Now, can you imagine the monthly payments on a $50,000 Cadillac or a $75,000 Mercedes?

   So, what about leasing that $35,000 BMW? On a three-year contract, the payment would fall to around $425 – 32% less than the four-year loan.

   The #1 reason why people lease instead of buy is because leasing allows them to drive a nicer car for a much smaller monthly payment.

2. Down payment? You’ve got to be joking.

   Low on cash for a down payment? You’re not alone. With leasing, you can generally drive away with nothing down. Zip. Zilch. Zero. Nil. Nix. Naught. Nada. Not a penny.

   And with Lease-X, many sellers will actually pay you a cash bonus to take over their lease. Where else can you lease a car AND get a big fat check to buy yourself a sweet pair of fuzzy dice? Repeat after me – Lease-X, Lease-X, Lease-X.

3. Length does matter.

   If you need a car for a short period of time – say 6 to 12 months – purchasing a car is an expensive proposition. The depreciation in the first few months alone may leave you upside down in a car that you can’t get out of. And, forget about renting a car, unless you’ve got money to burn.

   This is one of the many advantages of Lease-X. Lease-X is full of short-term leases, available for a fraction of the cost of other alternatives.

4. Instant gratification.

   Want to upgrade to a new car every few years, with minimum hassle? With leasing, you can afford to have the latest and the greatest. Since the term of a lease is significantly shorter than the term of the average loan, it allows you to move onto a newer model – or a different model – more quickly. After all, life is short.

5. Sales tax savings.

   In many states and provinces, when you lease a car, you pay for the sales tax over the entire length of the lease. This means that the sales tax is broken up into small monthly payments, as opposed to a large lump sum when you purchase the car.

6. It’s not personal, it’s business.

   If you are looking to purchase a car for business purposes, there is often tremendous tax benefits associated with leasing. Of course, you’ll need to check with your accountant to see if these benefits apply to your business.

7. The future value of the car.

   At the beginning of the lease, the value of the car at the end of the lease is set. In stone. And, occasionally on paper. This is the price that you can purchase the car for when the lease term expires. When you buy a car, however, you are taking a chance that the car is going to be worth more than you owe when you want to trade it in. And if you are like a lot of car owners, you’re going to be sorely disappointed.

8. Show me the money.

   In addition to a cash transfer bonus, many sellers looking to transfer their lease on Lease-X may offer additional incentives, such as making a few monthly payments for you in advance. Cha ching.

The Lure Of The Lease – In Plain English

The Downside Of Leasing A Car

The Upside Of Buying A Car

The Downside Of Buying A Car

The Definitive Answer

Take a look at our leasing guide here.