5 Benefits of Leasing Exotic Cars
Undoubtedly, there is something about exotic cars that we just can’t help to want to drive and just be around them. For many owners, these vehicles are not simply transportation or a status symbol; they’re a temporary escape from their day-to-day where they can experience the most pristine driving experience. Similar to all vehicle purchases, the methods of acquisition are not limited to outright purchase and traditional loans. However, leasing is a very viable option. In this blog, we share 5 core benefits of leasing exotic cars.
Preserving your capital for other investments
When leasing a car, you only pay for the expected depreciation of the car over the lease term rather than the entire price of the car. This frees up your cash to reinvest into your business or other investments where you can realize a higher rate of return.
Leasing for business purposes may be tax-deductible
Yes, you can lease in a business name. An exotic car can potentially be used to impress prospects and customers. If the car were used for work-related purposes there may be certain tax benefits; however, we recommend consulting with your accountant or financial advisor regarding any tax decisions.
Sales tax paid monthly and a lower tax bite
In Canada, you only pay sales tax on the portion of the vehicle that you use during the term of the lease and not on the entire value of the car. Also, instead of paying all of the sales tax upfront when financing (or paying cash), you pay tax as part of your monthly lease payment.
As an example, if you leased a $250,000 exotic car in Ontario, you would pay 13% sales tax only on the monthly payments. Buy it, and you would pay $32,500 in sales tax upfront.
No excess mileage charges and maintenance
In the case of vehicles purchased through an open-end lease, typically there is no restriction on the mileage that can be accumulated during the terms of the agreement. This allows the operator to use the vehicle as required. Many leases coincide with the manufacturer’s warranty coverage, or aftermarket warranties, so in the event that something were to go wrong with the car the owner is always covered for major repairs.
Ability to switch cars frequently
Many auto enthusiasts like to change cars every two-three years, or even more frequently. Lease structures can be tailored to each individual’s needs. Leasing can be a great option if you like to change cars more often and want to drive more car for your money. It allows you to jump into the latest cars with the newest technology, safety, and fuel-efficiency features.
As you can see, there are many benefits to leasing an exotic car. At Pfaff Leasing in Vancouver, Montreal, Calgary, or Toronto, we make it simple for our clients to get behind the wheel of the exotic car of their dreams. For more information about this, we encourage you to continue browsing through our website.
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