What is Leasing?

Leasing is simply another way to finance a vehicle. When you lease, the lessor retains ownership while you make fixed payments over a set period. At the end of the lease, you return the vehicle within the agreed mileage limits and normal wear and tear. Any excess mileage or damage may result in additional charges. You also have the option to purchase the vehicle at its residual value when the lease ends.

While businesses have long used leasing to finance buildings, equipment, and vehicles, personal vehicle leasing is still a relatively new and sometimes confusing concept for consumers. Our goal is to simplify the process so that by the end of this guide, you’ll feel confident in understanding how leasing works and whether it’s the right choice for you.

Why has leasing become popular?

  • In the mid 1980s, the government imposed “Luxury Tax Limitations” on the write-off of business use vehicles. The tax laws began to favor leasing in many situations.

  • In the late 1980s, the government eliminated the tax deduction for interest on vehicle loans. This increased the cost of ownership.

  • Savvy consumers began to realize that there were better uses of their cash than investing in a depreciating asset such as a car.

  • A lease payment is typically smaller than the payment for the purchase of the same vehicle. In a lease, you pay only for the value of the vehicle used during the lease. Under a purchase agreement, you would pay for the entire vehicle, regardless of the amount of use or final value.

  • Businesses and individuals have been attracted to leasing because no cash investment is required. A lease usually asks for a small refundable security deposit and the first month’s lease payment, with no down payment. Licensing and registration are simplified and, as the vehicle is “turned in” at the end of the lease, there is an easy disposal of the old vehicle.

  • As the cost of vehicles has continued to increase, people oftentimes couldn’t afford the loan payment on the vehicle of their choice and turned to leasing with its lower payments. However, we always discourage customers from acquiring more car than they can afford.

Who should lease?

Leasing offers numerous benefits for both individuals and businesses. While it may not suit everyone, it’s often a smart choice.

Traditionally seen as a business tool, leasing was once thought to be complex. In reality, it’s simple and beneficial for individuals too. Businesses lease to conserve cash, improve financial planning, and keep capital free for other needs. With no down payment required, lease payments are often tax-deductible and don’t impact credit lines.

Individuals also benefit from lower payments, no down payment, and an easier vehicle turnover. Even for personal use, leasing provides affordability and flexibility, while business use allows for significant tax deductions.

  • Step 1: Either you pick out your vehicle and negotiate the price with the dealer or you contact us and we take care of this step for you.
    Step 2: We evaluate your situation and pick out the best lease program for you.
    Step 3: You fill out the application forms and we get your credit approved.
    Step 4: We overnight the Lease Documents to you for signature and return by overnight mail.
    Step 5: We pay the dealer and you either pick up the vehicle or we deliver it to you.

  • Our financial partnerships with major national banks allow us to write leases anywhere in the Continental U.S. As an independent leasing company, we can purchase vehicles from any dealership nationwide. Whether you buy through a local dealer or one of our preferred partners, we ensure a seamless process and cost savings.

  • As an independent leasing company, we offer any make and model, giving you more choices without limitations. We’re transparent from start to finish—no games, just real numbers. With multiple funding sources, we provide better options than most dealers. Plus, our expert lease vs. buy analysis ensures you make the smartest financial decision.

  • Give us a call and we will provide you a detailed financial and tax Lease vs Buy analysis tailored to your specific situation.