Frugality

Benefits of leasing and asset finance

Buying property such as a new car or house is not easy due to the large initial cost. However, you may need to own it at some point. Leasing and asset finance is one of the convenient and affordable ways you can get what you need without having to raise a large amount of cash up front. Through leasing, you can use the asset for a decided time after which you can buy the property or return it to the owner. Some of the benefits of leasing include:

Increase your purchasing power

Leasing helps you to increase your purchasing power so that you can acquire better quality equipment rather than settling for something cheaper and most often than not less effective. You may need a vehicle that is worth $2,000 but you only have $900. You can use this amount to lease the vehicle of your choice for the time you need to use it, the actual cost of the vehicle not being a factor. This way, you get what you need without having to compromise due to cost.

Enjoy tax advantages

Depending on the sort of leasing contract that you have, you may enjoy some tax benefits. The availability of these benefits depends on various factors and you can find out more about them from your accountant.

Hedge against inflation

Most equipment prices often depreciate with time and usage. However, when leasing, your payments apply to the use of the equipment. Therefore, you do not suffer inflationary pressures. Furthermore, you are not subject to losses when it comes to resale of the equipment.

Flexible payments

One of the biggest advantages of leasing with http://leasequit.com/and asset finance is the flexible payments that you make towards the leasing contract. These payments plan designs conveniently fit into your income budget rather than going through the pressure of raising a large amount of cash. These flexible payments can also contribute to the hire purchase cost of the equipment if you intend to own it after completing the leasing period.

Leasing gives you options

If you are not ready to commit to a single asset or if you are unsure of the long-term needs of the equipment, leasing is the only way to make sure you do not end up with dead weight that costs a lot of money. Most leasing contracts have provisions for returning, extending or purchasing the equipment after the leasing term is complete. Leasing fits into a wide range of budget allocations.

Enjoy the warranty period

Most leases for equipment such as vehicles run for about three years. This is almost equivalent to the warranty period of a new vehicle. Therefore, the warranty covers most of the repairs done to the vehicle during the leasing period at little or no extra cost to you. However, you also need to play your part in maintaining the equipment in good condition to prevent any penalty fees at the end of the lease.

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