Even for their vast usability, cars are expensive and not everyone has the privilege to afford one. Thankfully, you can lease a car ensuring that it’s not heavy on your finances. Additionally, once the lease period is over, you can move on to a new and recent model replete with the latest features. Moreover, the monthly cost is relatively lower than the average EMI of an auto loan. Read on to know the 8 benefits of a car lease.

• Lower monthly payments

Since you are not buying the car, monthly payments are relatively less than the EMI of a standard bank auto loan. This allows you to get a car which you would normally not consider buying due to its high cost.

• No maintenance cost

Since most leases are covered under the car manufacturer’s warranty, you do not have to worry about the cost of any dents or damages that may occur. Certain leases also cover routine maintenance of the vehicle so you don’t need to spend a single penny for its yearly service.

• Lower down payment

Some leases offer little to zero down payment options. You will only have to pay the lease payment, taxes, and certain additional processing fees. However, if you want to lower your monthly rental fees, it’s best to pay the down payment.

• Tax advantage

In a car lease, you only pay tax on your monthly rental payments instead of the entire price of the car. This helps you save a substantial amount of money and is one of the best benefits of a car lease. Also, you can write off the lease as a tax deduction if you’re using the car for business purposes.

• New car options

One of the biggest benefits of a car lease is you will always be able to drive the latest car models. Not only will you enjoy the latest technological features, but also you won’t have to stress on its depreciation value as you will be driving the car only for a short time.

• Residual value

The value of the vehicle at the end of a lease is known as the residual value. This is locked at the beginning of the lease so no re-models or damages can affect its value. Always look into the fine print of the lease and bargain a good residual value.

• No struggling to sell used cars

You can simply return the car to the leasing company once the lease period is over. Selling a used car or worrying about its value is not your problem. You can either trade-up to a newer model in the market or you can buy your leased vehicle.

• GAP coverage

A GAP coverage insures your vehicle in case of theft and is generally included in a car lease. In a traditional loan coverage situation, you have to opt for GAP coverage separately which is quite expensive.