Should you sign up for
car leasing or buy a car? As you decide, you have to consider the pros and cons
of each. Here are some points to ponder on so you can make an informed and,
hopefully, satisfying choice.
Considering
Limitations
When you own a car, you
can use it freely and even modify it according to your preferences and needs. On
the other hand, when you are merely leasing (i.e. borrowing) the vehicle, you
may have restrictions on the annual maximum mileage, the modifications, etc.
For personal everyday use, purchasing a car may be a wise investment; for
business purposes, leasing may be better.
Comparing
Costs
The upfront costs of
buying a vehicle may be high, but car loans that can be paid in years make it
easier to afford the car. As for leases, you usually pay a set fee monthly
until the end of your term, where you can pay the remaining value or swap it
for another car or a newer model. Maintenance expenses may be included in
warranties or paid additionally, so these have to be considered when you crunch
the numbers.
Claiming
tax deductions
Both leasing and owning a
vehicle entitles you to tax deductions when you use the car for work-related
errands. You can use the Australian Taxation Office calculator to compare your claims.
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