A Smart Lease Can Be Advantageous?

Answer 1

A Smart Lease is a leasing option often used in automatable financing. Consumers can realize many advantages from a smart lease. The most popular advantage, and one that is highly advertised, is the low monthly payment. Since the term of an auto lease is not long-term, the monthly payments are typically lower than standard financing because one is only paying on the value of the vehicle that is expected to be used during the lease term. For example, when one is interested in a luxury car that will typically render monthly payments to be extraordinarily high with regularly financing, a smart lease offers a reasonable monthly payment based on a short lease term.

Since smart leases are set for short term durations, one can virtually drive a brand new vehicle every few years. Upon completing the term of a smart lease, the customer typically has three options. The first option is that the customer can simply walk away with no further financial obligations. The second option is to return that vehicle and lease an brand new vehicle. The third option is to purchase the vehicle via traditional financing options. Of course, all three options are conditioned upon the customer complying with all of the conditions of the smart lease and/or qualifying for any additional conditions.

Complete maintenance assurance is another great advantage of the smart lease. Consumers do not have to anticipate costly repair expenses, or unforeseen mechanical repairs because the smart lease is typically offered on new cars that are covered under the manufacturers bumper to bumper warranty.

A smart lease may also offer additional tax benefits if the vehicle is used for business purposes. Consult with a tax professional for specific requirements, and advise.

Before agreeing to purchase your next vehicle through a smart lease, thoroughly understand all the options regarding yearly mileage usage limits. Smart leases are based on the amount of miles that the customer anticipates utilizing per year. Thus, a very low monthly payment may be hinged on the fact that the allowable mileage per year is relatively low. Hence, if one anticipates utilizing the vehicle above the average per year, one should reconsider the smart lease as an option or at the least, inquire as to options with high yearly mileage allowances.