Why Leasing? Why Is Leasing Popular?

If we go back to about 10 years ago, most automobile consumers were not aware of what auto leasing is. Now, nearly 40% of all new automobiles are leased in Canada and the numbers are increasing rapidly each year. If you wish to know how popular leasing has become, you can just take a look at lease ads in newspapers.

There are two main factors that caused the favourable shift to leasing. Firstly, the cost of new cars has increased significantly over last few years and that high cost of new cars put out potential average buyers. Secondly, in the late 1980’s, tax law changed and it eliminated interest deductions on automobile loans and that lead increased the cost of ownership experience. Thus, people were eager to find ways to make their personal vehicles more reachable.

Leasing has become incredibly popular because it gives an opportunity for people to drive the vehicles they want or vehicles that they dreamt of for less money and less hassle. However, as attractive as it may seem, leasing certainly does not fit everybody’s lifestyle. Moreover, leases can be more complicated than purchase loans. From the article written by Eric Peters, he puts it this way, “The problem with leasing isn’t so much the cost; rather, it’s the perceived complexity” (Peters, 1996). In order to get a good fair deal on your auto leasing, you must do your research and preparation.