10 Reasons You Should Lease a Car
The team at Motofy have been working in the automotive rental and lease space for a combined total of over 30 years. As automotive-insiders we know all the tricks of the business. Two of the most common questions our team get asked are; 1) “How do I get a good deal on a car?” and 2) “Should I lease or should I buy?”
Leasing actually answers both questions. Leasing almost guarantees you the best deal in today’s automotive industry. Almost everyone would be better off leasing a car because of the way the industry is today - almost no one should buy a car. Here are ten reasons why you should lease rather than buy:
1) Use it and lose it. A car is just a commodity. It is simply a piece of equipment used to get where you want to go. There is no valid reason to own a car, the thing you want to do is simply use it and then get rid of it.
2) Control of cost. With leasing, you can control the cost of your usage based on time and distance. By leasing, you can get in and out of a car limited to how much you use it. Those that put high kilometres on a car (contrary to popular belief) should lease as the user can exact the cost of usage.
3) Better deals. The deals are almost always better on leases. The way to get the best deal on a car is to work the manufacturer, not the dealer. The dealer doesn’t control the best deals the manufacturers do. When Honda wants to take market shares from Toyota, for example, they will increase the residual of a particular model thereby reducing your monthly cost.
4) Lease depreciating assets, don’t own them. There is no reason to own a car or anything for that matter when you know it’s going to go down in value. The argument against this is when you lease you will have a payment forever. That’s right, and when you own you have payments that are unpredictable. The perfect lease would be 24-36 months (shorter the better) and get out before there are issues not covered by warranty and before models change.
5) The lease agreement protects you against future loss. A lease is like putting a stop on a stock or getting life insurance. The lease protects you from the downside of eroding market conditions. If the future value of the car were to depreciate more than anticipated because of new models, abundant inventories, or a failed economy you are protected against future downside with a lease.
6) Don’t believe the fantasy of ownership. Pay to use the car, not for some fantasy of ownership. There is no reason to pay for the future value of the car. You are paying to use a car not for its value in the future.
7) Never worry about selling or trading your car in. At the end of your lease simply hand your car back and/or upgrade to a new car. No need to haggle car dealers about how much your trade-in is worth and no need to deal with unreliable private buyers who seem intent on wasting your time.
8) Share the equity. Motofy give you the ability to make an offer to purchase your lease vehicle at any time. If you lease for the longer term, say 36 months or more, it's likely Motofy will sell you your car for its residual value, which could be less than its market value. On some used car leases, Motofy will sell you the car for $1. This equals an instant windfall for you!
9) Tax deductions. The write off’s on leases can be much greater than ownership. For a business owner who owns a car, the write-off can be limited to the depreciated value of the vehicle, set by the ATO. If you leased the same car and used it 100% for business you could write off 100% of the lease payment with no limits.
10) Leasing is easier and quicker. Put simply, Motofy do all of the leg work for you. You tell us what you want, we find the car, negotiate the purchase and make all arrangements for the lease to start. During your lease we arrange servicing and repairs and are there to help you with any issues that arise along the way. When your lease is over, we help you to hand your car back or seamlessly upgrade to another car.