Choosing to lease instead of buy a vehicle is becoming an increasingly popular decision among drivers, and it's not too difficult to understand why. Even from just a few years ago, there has been a significant jump in how many drivers on the road are leasing their vehicle. While each situation is different and it's important to weigh in your driving patterns and preferences before deciding on leasing vs. financing, we've put together some information to help you understand the benefits of leasing your next vehicle:

There are pros and cons to both leasing and financing a vehicle, but one of the biggest and most obvious perks about leasing is that you have the option to upgrade your car every few years. With all the rapidly improving technologies, luxury features and safety features, being able to upgrade often without having to worry about selling or trading in your car is a huge bonus. Once your lease expires, you have the option to purchase the car or start a brand-new lease. You can always be driving the newest and best car on the market.

Leasing is an especially great option for those drivers who need or want an upscale car for their business, whether that means driving clients around, pulling up to meetings, or even bragging rights. You can have a nicer car for less money (and potentially a helpful tax write-off…) with significantly lower monthly payments and usually little or even zero down payment cost. You can be driving the same exact vehicle for hundreds of dollars less each month and be under warranty at the same time.

A final thing to consider is tax laws. Tax laws are always changing and recent laws have made leasing more advantageous for auto buyers. Starting Jan 1, 2015 state taxes on leases were reduced by as much as 50 perfect under House Bill 2317

New vehicle trade-in tax laws that went into effect Jan 1, 2020 have also made leasing more attractive for buyers. The state currently collects no sales tax on a car's trade-in value, which acts as credit toward a new vehicle purchase. By law, sales tax only applies to the difference between trade-in value and the new vehicle's purchase price.That changes starting Jan 1, state and local sales tax will be applied to any trade-in value above $10,000. If you lease a vehicle, this new tax will not effect you.

So what are the cons with leasing? You don't own the car at the end of the lease, even though you have the option to buy it. As previously mentioned however, many people still find this to be more of a pro than a con.

Secondly, there's the issue of mileage limitation. In a lease, mileage is typically limited to between 10,000 and 15,000 miles a year, but you are usually able to purchase extra miles ahead of time. If you do go over your limit, the fees on average are more affordable than you would imagine. Unless you regularly take several large road trips a year, this shouldn't cause any problems. (According to the U.S. Department of Transportation, the average American puts 13,500 miles on his or her car each year.) It's also important to note that although a penalty of any amount for extra mileage on your lease limit sounds scary, having an above average number of miles on a car you're trying to trade or sell is just as penalizing, if not more.

Whatever you choose, the financing and leasing programs offered by Autohaus of Peoria fit a broad range of driving and lifestyle needs. Contact us or stop in at Autohaus of Peoria anytime. Our sales staff and financial officers would be happy to help you decide the best path for you to have your dream car.

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Autohaus of Peoria

2322 W Van Winkle Way
Directions Peoria, IL 61614

  • Sales: 309-512-8248
  • Service: 309-512-8253
  • Parts: 309-512-8253


  • Monday 9am - 8pm
  • Tuesday 9am - 6pm
  • Wednesday 9am - 8pm
  • Thursday 9am - 8pm
  • Friday 9am - 6pm
  • Saturday 9am - 5pm