Behind The Wheel
Auto leasing options that get your business in gear
If you've been busy scouting out the best buys in new
vehicles, you may be concentrating your efforts on choosing the
model, make and options to fit your needs. But eventually, the
question of financing arises. Should you buy or lease?
The popularity of leasing continues to rise. In fact, by the end
of the decade, manufacturers expect half of all new cars to be
financed under a leasing program, whether it's for a single car
or an entire fleet.
When you lease a vehicle, you sign a contract with the lessor
that gives you the right to use the vehicle during a specified time
period for an agreed-upon payment. You do not own title to the car,
but you are responsible for fees such as insurance, licensing and
registration.
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Paying cash for a car will always net you the best price because
you won't be paying interest on a loan, but is that the best
way to use your available capital? When you consider that the
greatest benefit of leasing for the self-employed is the tax
deduction for leasing payment interest, you'll probably think
twice about tying up your savings or stretching your credit line to
purchase a vehicle.
Recognizing our desire for new cars and the difficulty in paying
for them, car companies are crunching numbers and coming up with
innovative pricing to appeal to buyers. Dealers are more willing
than ever to custom-tailor leasing programs and are offering more
incentives. For instance, Cadillac's SmartLease program on its
DeVille model is $50 less a month in payments than it was two years
ago. And if you already own a Caddy, you can take $1,000 off the
$2,800 down payment.
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