Leasing

The 5 Myths of Leasing

By
FleetGuru
on
May 18, 2017

A well-written lease takes into consideration the anticipated use of the vehicle, whether it is the number of miles that will be driven or the condition of the vehicle at lease-end. Simply stated, with a lease you avoid paying for the vehicle life that remains when you no longer want to use the vehicle.

“I’ve heard horror stories about leasing.”

Myth #1

“I don’t want to be limited to miles and charged for damage”

“I drive too much to lease a vehicle.”

THE KEY TO LEASING IS IN THE DETAILS

A well-written lease takes into consideration the anticipated use of the vehicle, whether it is the number of miles that will be driven or the condition of the vehicle at lease-end.  Simply stated, with a lease you avoid paying for the vehicle life that remains when you no longer want to use the vehicle.  

Dealers are known for writing leases that won’t match the actual use of the vehicle.  The terms are generic and often too restrictive for many lessees.  This can result in heavy punitive charges at lease-end.  At Doering, we have the ability to customize each lease to ensure that every client is satisfied and protected from excessive charges at lease-end.

Myth #2

“I have nothing at the end of the lease.”

“I like to own my assets.”

LEASING PRESERVES YOUR LIQUIDITY

Leasing requires a smaller investment of your capital compared to purchasing a vehicle.  What you will have at the end of the lease is only limited by how you choose to use the extra money!  You could choose to invest in an asset that has the potential to appreciate, or use the additional liquidity to fund critical expenses.  When the many benefits of leasing are explained to accountants and financial planners, most agree that vehicle leasing is a better strategy for financial growth than investing your money in a depreciating asset.

Myth #3

“I like to get used cars and you can’t lease used cars.”

LEASING WORKS FOR NEW AND USED VEHICLES

Generally speaking, the guidelines on leasing used vehicles require a market value of at least $15,000.

Myth #4

“I keep my vehicles for a long time.”

LEASING IS A FINANCING ALTERNATIVE WITH A BUILT-IN EXIT STRATEGY

Leasing is a perfect option to finance a vehicle even if you intend to use your vehicle for many years.  Leasing offers advantages over traditional financing, such as an exit strategy if you decide you don’t want to keep the vehicle at the end of your contract term. Also, leasing provides protection from the risk of market value fluctuations.  Traditional financing puts the entire risk of losing money at resale on the vehicle owner.

Myth #5

“I’ve always bought, it’s just the way I’ve always done it.”

UNDERSTANDING VEHICLE LEASING MAKES IT THE RIGHT CHOICE

Most people purchase vehicles because they don’t understand how they can benefit by leasing their vehicle.  Once leasing is explained, the majority of individuals choose leasing over purchasing.  Our success is based upon satisfied clients who remain with us because of the advantages they receive year after year as a direct result of our leasing programs.

Want more information on leasing?

Take a look at this informative video about leasing with Doering Fleet Management.