About Leasing

As we all know, the average cost of a new vehicle rises each year. With this in mind, it's important that consumers understand all of the financing options available to them. One option available is leasing.

The general principle behind leasing is that you pay for only what you use. Typically, leasing requires a lower initial cash outlay, lower monthly payments (as compared to a loan), and you can get more vehicle for your money. By leasing your vehicle, you can drive the car of your dreams for less than the typical monthly loan payment.

One of the commonly discussed disadvantages to leasing is that you don't own your car at the end of the lease. Of course, purchasing a vehicle through a loan may mean that by the time you've paid off the loan, you've paid more than your vehicle is worth.

Leasing a vehicle enables you to escape the inherent problem with purchasing a vehicle, namely, that the vehicle's value depreciates over time. Accountants usually recommend buying an asset if it appreciates and leasing it if it depreciates.

It's important that consumers understand all of the financing options available to them. At Eastern Auto Leasing, we work hard to customize leases for every one of our customers. We look at the entire transaction and, because of this, we make our customers happy.

• Working capital is freed for other uses
• Normal bank credit lines are not disturbed
• Since the expense can be easily identified and allocated to the appropriate cost center, cost accounting may be simplified
• Income is generated from the use of the vehicle — not ownership.