Halton AutoLease Discusses The Benefits of Leasing A Car Over Purchasing A New Vehicle

When it comes to the decision of leasing or purchasing a vehicle, the experts say "make the decision to lease and save your money".

make the decision to lease and save your money

contract between a Lessor and a Lessee for the hire of a specific asset. The ownership or asset is retained by the lessor, but the right to use the asset is given the lessee for an agreed period of time in return for a series of payments

From an income tax perspective, when an automobile is used for business purposes, it is most beneficial if the vehicle is used 50% or more for business and has a cost not exceeding $30,000

When you lease, though, regardless of your percentage of business use you are able to claim, paperwork and accounting are simplified because your payment encompasses both the monthly depreciation and interest expense of your new or used vehicles.

if your heart is set on owning a new vehicle, you wish to make vehicle modifications or you have a poor credit rating, then leasing might not be for you. But if you keep your cars in good condition, generally drive less than 35,000 kms per year and know you'll be able to make your payments then leasing is the option that will save you the most money in the end

(PRWEB) April 16, 2009 -- So what exactly does it mean to lease a vehicle? According to Paul Pittaway, the Lease Manager for Burlington, Ontario's Halton Auto Lease, a lease is a "contract between a Lessor and a Lessee for the hire of a specific asset. The ownership or asset is retained by the lessor, but the right to use the asset is given the lessee for an agreed period of time in return for a series of payments". So when you decide to opt in for regular or commercial auto leasing, rather than paying the whole cost of a vehicle regardless of how many miles you drive it, you pay only a portion of the cost of the vehicle - the part that you, the lessee uses up.

"From an income tax perspective, when an automobile is used for business purposes, it is most beneficial if the vehicle is used 50% or more for business and has a cost not exceeding $30,000", stresses Paul, "When you lease, though, regardless of your percentage of business use you are able to claim, paperwork and accounting are simplified because your payment encompasses both the monthly depreciation and interest expense of your new or used vehicles."

So is flat-out purchasing of a vehicle all bad? "Not really", explains Paul, "if your heart is set on owning a new vehicle, you wish to make vehicle modifications or you have a poor credit rating, then leasing might not be for you. But if you keep your cars in good condition, generally drive less than 35,000 kms per year and know you'll be able to make your payments then leasing is the option that will save you the most money in the end".

###

Post Comment:
Trackback URL: http://www.prweb.com/pingpr.php/Q291cC1TaW5nLVBpZ2ctVGhpci1QaWdnLUNvdXAtWmVybw==

auto car leasing commercial used finance

Bookmark -  Del.icio.us | Furl It | Technorati | Ask | MyWeb | Propeller | Live Bookmarks | Newsvine | TailRank | Reddit | Slashdot | Digg | Stumbleupon | Google Bookmarks | Sphere | Blink It | Spurl