Why It’s Okay to Lease a Chevrolet Corvette
Leasing the New Corvette of Your Dreams Isn’t a Bad Idea
Jay Leno, chin-in-chief of the motoring world, recently said that it’s not a good idea to lease a Corvette. While I certainly respect his opinion, leasing isn’t the worst idea in the world if you’re looking at a new Corvette. There are some reasons why you’d want to consider leasing.
You Own a Business
I am not a tax accountant, so taking that type of advice from me comes with the risk of me being an idiot, but when you lease a car you can deduct your lease payments as a business expense. Obviously the Corvette would have to be used for work, which limits who could use this rule, but it’s possible.
When you buy a vehicle for your business, you deduct the depreciation. You also deduct the mileage, as it’s also a business expense. With the lease, you deduct the payment. If you’re a brick layer, you probably couldn’t pull this off, but if you are a traveling Corvette salesman, you might. Obviously check with your tax accountant.
You Don’t Plan on Keeping It
Do you like a new car every couple of years? We all do! That’s one reason why I love writing about cars, because I get to drive new ones regularly without having to buy them. But I digress. If you like having a new car every couple of years, leasing makes sense.
While it’s true you don’t build any equity in a lease, you also aren’t paying for the entire car. You’re just paying for what you use. Doesn’t it make more sense to pay for what you use than to pay for everything?
For those completely unaware, when you lease, the leasing company determines how much the car is going to be worth at the end of the lease. This is, to put it simply, a guess. An educated guess, sure, but it’s a guess nonetheless. Then the amount of the sale price to the amount of what it’s worth in two or three years is divided over the course of the lease.
There’s more to it than that, but only paying for what you use makes a lot of sense if you aren’t going to keep it forever.
Special Corvettes Make the Deal Better
You’d think an in-demand model like the Grand Sport would be worse on a lease. That’s not necessarily the case. If the leasing company determines your car is going to hold more value over another version of the Corvette over three years, your lease payments could be lower on the better car.
Cars Aren’t in Demand
While Corvettes surely are more immune to the whims of the automotive marketplace than other makes and models, the truth of the matter is that people aren’t buying cars. Additionally, they’re not buying sports cars. That means companies like Chevrolet are looking to move metal. One way a company can move metal without seemingly taking a big financial hit is by offering good lease deals.
Why do you think your neighbor leases a BMW for $299 a month? A normal lease wouldn’t be that low in most cases, but BMW wants to move cars, so they “cook the books” by offering solid lease deals.
The manufacturer’s loss is always your gain.
Just a reminder: If you are someone who plans on modifying your Corvette, a lease is not a good option for you. The car needs to be returned in stock condition, or you’ll be assessed a fee. You don’t want that.
Also, if you’re someone who plans on keeping a car for five years or longer, a lease isn’t a good option.
If you’re savvy with how you shop, you can get a good deal on your next Corvette. Depending on your circumstances, that good deal might even be a lease. And that’s okay.