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With the emphasis on saving money and making the best spending choices, potential car buyers are seeking ways to minimize their down payments and still get that best deal on a car that may be priced above their means. One often-overlooked option for getting that new car and the best deal is to consider leasing. Critics of leasing cite several valid reasons for why buying is a better option. Little to no money down. The money you would pay down to buy a car can be put to better use in an investment. Lease what depreciates, buy what appreciates. Lower monthly payments. Lease payments are based on a number of factors such as the residual value, which is calculated based on the usage and depreciation of the vehicle after a two- or three-year period. Have the opportunity to acquire a vehicle with more equipment, such as heated leather seats and a power sunroof. Tax deduction for a small-business owner. Before signing an agreement to lease a vehicle, be certain you understand the terminology of leasing agreements and ask questions if anything is unclear.
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