If you just moved to a new city and need a vehicle to get around, you may want to consider leasing a vehicle for a few years instead of purchasing a new vehicle. Here are three ways that leasing a new Jeep or other vehicle can be a smart choice for a young business professional in a new city.
Generally, when you lease a brand new vehicle, all major service and even regular maintenance is included with the vehicle warranty. That means when you need to get an oil change, you can just swing by your dealership. Or if your brakes need to be replaced, the dealership will cover the cost of replacing them for you.
This can be really advantageous in a variety of ways. To start with, when something happens to your vehicle, you don't have to spend time or energy figuring out where to take your vehicle for repairs as a young, busy professional. Additionally, you don't want to have to break the bank or use up your emergency fund fixing your vehicle when you are just working on establishing yourself personally and professionally.
#2 Tax Savings
When you purchase a vehicle, you have to pay the taxes for the entire purchase price of the vehicle when you buy it. You either have to come up with enough money to make a down payment and pay the taxes up front or you have to wrap the taxes into the car loan that you take out, which ends up increasing your overall tax burden over time as interest is added to your loan.
When you lease a vehicle, you don't have to pay taxes on the entire worth of the vehicle. You only have to pay taxes on the payments that you make. Your tax obligation is spread out over your monthly payments like any other bill, and you don't have to pay a large sales tax bill up front.
This can help you save more money and make transitioning into life as a young professional a little less expensive.
#3 Credit Ratings
If you are just starting your business career out of college, you may not have had a chance to really build up your credit rating and score. When you get approved for a lease, you generally take out a loan that covers the cost of the lease and then make payments towards that loan. This allows you to easily build up your credit. Additionally, it is generally easier to get approved for a small loan to lease a vehicle than it is to purchase a vehicle, making it even easier to raise your credit score up.
When I started shopping around for a car, I knew that I wanted something a little different. Unfortunately, I had no idea what to look for, which made things complicated. I visited several different dealerships, but it wasn't until I worked with the right salesperson that I found what I wanted. My salesperson showed me exciting new car models and talked with me about safety features, which really helped me to narrow down my choices. Check out this blog to learn more about finding the perfect car so that you don't have to worry about having buyer's remorse down the road.