Renting and Leasing Vehicles – When It Makes Sense (or Cents)

Obviously when you fly to another city and need transportation, you will need to use mass transit or rent a car. Other times when you might need a rental include: special occasions, when your vehicle is at the repair center, or if you need a special type of vehicle (e.g., a truck) just a couple of times a year. Instead of outright owning a vehicle, some people and businesses opt to lease.

Pros and Cons

Leasing a car has some distinct advantages as compared to buying. Usually the down payment is less when you lease. When you purchase you often need to put down 20% to obtain a loan. The monthly payment is usually less when you lease too. The disadvantage here is that you don’t own anything at the end of the leasing period. If you are the type of person that always likes to have a newer vehicle (3 years or less old), then leasing may be for you. Make sure you read the fine print what the dealer requires as to the returnable condition of the vehicle so you can avoid any penalties. For businesses, there may be tax benefits too.

Working with a Car Solutions Company

For some small and large organizations, it makes sense to work with a car solutions company. These companies work with businesses to identify funding methods and help with fleet management. One company, Hitachi, even has electric vehicles in their portfolio for businesses that want to “Go Green”.

Conclusion

You have choices when choosing a new vehicle. When determining if it makes sense (or cents) to lease, consider the down payment, annual estimated mileage, monthly payments, routine maintenance, depreciation, and tax consequences.

About the Blogger

Michael Gray is co-author of Auto Upkeep – a basic car care curriculum used by over 500 schools and thousands of homeschoolers in the United States and Canada. You can become a “Fan” of Auto Upkeep at Facebook.com/AutoUpkeep.

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Auto Upkeep 4th Edition

Michael Gray

Mike has roots in the automotive service industry. He began diagnosing and fixing cars at a young age in his family’s service station. He has worked in automotive parts supply stores, towing companies, and service facilities. After graduating from St. Cloud State University (MN) with a Bachelor’s degree, he implemented and taught a basic car care program at the high school level. During work on his Master’s degree at Illinois State University (IL), he was a curriculum specialist on a National Science Foundation project where he co-authored ten integrated mathematics, science, and technology books designed for team teaching. Mike has also supervised teachers in Career and Technology Education as a school system administrator.

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