Buying Used Cars: Advantages Of Leasing

It is no secret that sales of used cars have picked up after the pandemic set in, with people preferring personal mobility instead of opting for public transport. As far as owning a used car is concerned, there are more options available than just owning/buying a vehicle. The average ownership of a second-hand car is about 24-30 months and then there is the running cost to consider as well. Leasing a used car, instead, is not only more affordable but offers other benefits as well. Here's a look at the advantages of leasing a used car instead of owning one.

Ease of Maintenance

(Car maintenance is no longer a cause for headache under leasing)

Maintenance and running cost of a vehicle is significant. When a vehicle is leased, the maintenance is taken care of by the company from where you leased. One doesn't have to spend anything extra on regular vehicle maintenance and repairs apart from the monthly lease payments.

Tax Benefits

The monthly lease amount paid by a person is eligible for tax relief and one can save a significant amount on the taxes. The good news is that this clause is applicable for salaried as well as self-employed individuals.

Pay For A Certain Duration

(Payment terms for leasing are valid for a certain duration)

One highlight of the leasing model is that you pay for the car for a certain period which is pre-determined in the agreement between the lessor and the lessee. Once the duration is over, you can either return the car or increase the lease period as per your requirement. You also have the option of buying the car at residual value after the lease period is over.

No Down Payment

A big highlight is that there is no need for a down payment to be made for you to take ownership of the vehicle. You can start using the vehicle and pay monthly lease instalments, without worrying about arranging a significant sum of money like when you purchase a vehicle against a loan.

Insurance Coverage

(Monthly lease EMIs include comprehensive insurance as well)

The monthly lease instalments also include comprehensive insurance coverage which means you don't have to worry about renewing insurance or additional expenses. The insurance cover includes changes against theft, accident, repairs etc.

Easy Ownership Experience

With all the benefits we listed, it is clear that leasing a used car is a great option. There is a lot less hassle in general and the monthly lease instalments are roughly equal to EMIs if you purchased a car against a loan. The advantage here is flexibility, with respect to lease duration, maintenance, insurance etc. Plus, one doesn't have to worry about the depreciation of the car either.