As retail prices of cars have continued to soar as of recent, leasing a vehicle is steadily becoming more economically viable than purchasing one. Car leases are much less costly than buying or financing the purchase of a vehicle. Taking out a lease towards a car offers a majority of the benefits purchasing a car does: having a nice, new car to drive.
A widely recognized benefit of car leases is the low responsibility associated with short lease terms. Repairs and maintenance may be skipped in the interim for the dealership to perform upon finalization of the lease term. Also, leased cars must have warranties active that eliminate costs related to car damages and failures not associated with at-fault accidents.
What Does Leasing a Car Involve?
Vehicular leasing comprises a palette of terms and conditions that need to be understood. Inform yourself about these important facts and situations to consider to properly evaluate the value of any given car lease contract.
Your Payments Reflect the Car’s Value
Payments required for various vehicles depend directly on the sales price. By searching for a vehicle of lower value, you will save money in your lease agreement.
Higher Residual Percent Saves You Money
A high residual percent reflects a high amount of depreciation held by a car available for lease. Higher residual percentage values call for lower lease installments required. Actively search car lots for vehicles with high residual percentages, found by directly asking the dealer for such values.
Understand Your Set Miles
Every vehicle as an upper limit of miles able to be traveled every month that should not be exceeded. Surpassing this explicit distance value results in hefty fees, calculated and charged to you per extra mile driven. Learn about various car leases’ terms to find a set mile limit comfortable in meeting your needs.
Expect a Disposition Fee
Disposition fees are required by lessors to return the vehicle to acceptable, resalable condition. Such fees usually range from $300 to $500, depending on the value of the vehicle.
Understand What Money Factor Means
Money factor is a part of a hard to understand, fancy financial terminology used by car dealers. Remember that money factor means APR: simply multiply any car’s money factor by 2400 to reach its annual percentage rate (APR). Try to sign an agreement whose car features a low money factor to save hard earned money.
Is it Better to Lease or Buy a Car?
By reading about basic vehicular leasing facts, tips, and tricks, you are undoubtedly on the search for a new vehicle. Understand all points raised in this article prior to moving forward in the leasing process. Even though the majority of Staten Island car leases are great options, Zooomr recommends to all potential lessees to fully understand car lease basics before leasing a car.
You Won’t Own the Car
One advantage of the high cost of purchasing a vehicle comes in the ability to do whatever one wants to their car. Purchasing a car transfers ownership from dealer to buyer; leasing a car is essentially borrowing a car from a dealership for set amount of miles and days or months. Lease agreements such as Staten Island car leases translate to lower payments, unfortunately at the price of nixing the potential for modifications or resale.
Leasing Cuts Down Up-Front Costs
Financing a car comes with the burden of trading in a vehicle, submitting a down payment, or both. Choosing to agree to any one of the popular Staten Island car leases, down payments are never necessary, as you are only required to pay a reasonable security deposit along with other minor fees and taxes. One can also pay extra money prior to commencement of the lease term to lower amounts required in further monthly payments.
No Need to Worry About Selling Car Leases
Unfortunately for car owners, participants of used car markets often refuse to pay reasonable prices. To even begin to command a reasonable price for a used vehicle, one must commit time, effort, and resources towards maintenance. When you submit to a car’s lease agreement, you will never be burdened with finding potential, reasonably-minded customers to purchase your car.
Submitting the final payment, or “end payment,” of the payment plan for a financed vehicle always results in the lessee ending up with ownership and title of the vehicle. After obtaining ownership, the owner can do whatever he wants to the vehicle as it is now his. Leases retain ownership of a vehicle, which requires lessees to return the vehicle to the lessor, usually a dealership lot. Sometimes, lessees are extended the opportunity to purchase the vehicle at a reasonable, lowered price as compared to normal resale car markets.