Getting a Lease Deal Online
If you’re new to cars, you probably have questions about how leasing works, and this article will tell you about what you need to know. After this article, you’ll learn about:
- What is a lease
- Why do people lease
- What do I need to know if i’m going to lease a car?
- How can I determine if i’m getting a good deal on my new car lease?
What’s a car lease?
Some people think it’s nothing more than a long term car rental. That’s not a completely accurate comparison, but it does a simple enough job at explaining it. The lessee – you – pay money to the lessor(the bank), who owns the car. The agreement is set for a certain length of time, usually 2-3 years. During this time, you can drive the car for a set number of miles (usually between 12ooo to 15000 miles per year). You can raise the amount of miles you can drive, but the more miles mean higher monthly payment.
Your use of the car, and the miles you put on the car, reduce the car’s value. You are paying for that depreciation. You also pay the lease fees, taxes, etc.
Why do people lease cars?
There’s a lot of great reasons to lease a car. First, it’s less expensive than buying a car. With the retail price of car’s rising, a lease is often the least expensive way of getting a car. Leases require lower down payments, and lower monthly payments, than car purchases. This is also a great way to get a new car for less money than you’d have to typically pay for. In addition, leases also have a lower cost of maintenance. Leases typically end before cars require major service, or new tires. As a result, maintenance costs are usually low for leases. In addition, leased vehicles are usually under the original factory warranty. As a result, owners don’t have to worry about the cost of repairing the vehicle – as long as the problem is covered by warranty.
Another great benefit of car leasing is you can have a new car every few years. Many people want to be in the latest, and newst, car. Leases are typically for 2-3 years, as a result there’s a faster turnaround time than a standard car which is held for 5-7 years. Leases are also easier to exit once the term is complete. Assuming there isn’t any over-mileage, or excess damages to the car, you can drop off the car and move on to whatever is next.