Friday, February 26, 2010

Benefits of contracting

Despite aggressive low-interest financing, cash-back offers and other
purchasing incentives offered by leading auto-makers to acquirers, leasing
numbers keep increasing steadily over the years. leasing is not only an
attractive financial proposition to most auto-consumers, but also a
lifestyle and preference choice.

Benefit Number 1: Keeping up with the latest trends

leasing is sometimes more of a personal and lifestyle choice than a
financial one. Many individuals are not comfortable with the idea of owning a
vehicle over a long period of time. They’d rather keep up with the latest
trends of the industry and drive the latest models every two to three

contracting a vehicle gives you the convenience of having the latest technology
and safety innovation, such as an electronic stability system, DVD
entertainment systems and advanced stereo equipment. If you are willing to
forego ownership for the latest set of wheels, than leasing is your best

Benefit Number 2: Purchasing Flexibility

contracting also offers purchasing flexibility: it allows you to defer the
purchasing decision while using the motor vehicle. You don’t have to haggle with your
mechanic over repair expenses, deal with hefty maintenance bills or worry
about a depreciating asset. Provided you can keep the auto-vehicle in good
condition and stay within the contracted mileage allowance, you’re
effectively getting a test drive for the length of your contract.
At the end of your agreement, you can purchase the vehicle or simply turn in
the keys and walk away. No questions asked.  

Benefit Number 3: Cash Flow

contracting offers many short-term benefits. It reduces your initial cash
outlay as you do not have to pay the large down payment required for vehicle
ownership. You only pay for the depreciation on the means of transportation - only the part you
will use during your lease, not the entire vehicle. This results in lower
monthly payments and frees even more cash. This cash can be put to use more
intelligently elsewhere than the questionable investment of owning a
depreciating asset. If you are self-employed or use your vehicle for your job,
then you can write off your contracting payment as a business expense.

Benefit Number 4: Negotiating Leverage

Although it may seem a little unorthodox in this industry, almost
everything about contracting is negotiable. If you know all the fees involved,
you can lower your monthly payments, negotiate the purchase price of the
vehicle at the end of the contract and contract additional miles on top of
your mileage limit. You can also do some shopping around and compare deals
from different auto-insurers to get the cheapest GAP insurance for your

No comments:

Post a Comment