A clear narrative warning of the possibility for substantial charges if the contract is terminated before the end of the lease term. A notice of the limitations of any financing rate disclosures. These changes have been well received by consumer advocate groups and the leasing industry. Standardized disclosure will make leasing a more open process that will likely increase both customer satisfaction and the volume of vehicle leasing. Leasing is very popular with drivers of more expensive vehicles.
Sales tax is assessed on each lease payment, rather than at the beginning of the lease.
Depending on the cost of the car, total mileage, and percentage of business use, a lease may yield more favorable tax consequences than a purchase. Easier to Upgrade Lower monthly payments allow consumers to leverage their purchasing power and lease a car that is more expensive than they could otherwise purchase. In most cases, the lessee can return the car to the lessor at the end of the lease, or buy it at a preset price. A vehicle that is purchased and maintained for the long term will generally be more economical than leasing a car every 2 or 3 years. Some individuals find it hard to break a cycle of leasing because they do not have any equity in their leased vehicle, which makes it more difficult to meet the higher initial costs of a purchase.