Leasing a vehicle is often an advantageous method of obtaining a vehicle for personal use, as compared to purchasing. Car leases are less expensive than purchasing, especially because retail prices of vehicles have consistently risen over past years.
Car leases also require less maintenance than those that are purchased because dealerships often take car of any needed maintenance. To further sweeten the prospects of leasing a vehicle, leasing almost always is accompanied by a warranty that mitigates the cost of surprise accidents or breakdowns.
What Does Leasing a Car Involve?
Outlined below are the most important functions of leasing a vehicle, important to be kept in mind throughout selecting a vehicle for lease:
Your Payments Reflect the Car’s Value
The selling price of a vehicle dictates the amount of monthly payments. Those searching for lower monthly payments and less financial burden should select a vehicle with lower retail cost than other vehicles.
Higher Residual Percent Saves you Money
Vehicular leasing agreements change in amount based on the condition and age of the vehicle. Depreciation is factored into the value of payments with residual percentage values. Selecting a vehicle with a high residual percentage value is necessary to being subject to lower monthly payments.
Understand Your Set Miles
To regulate the condition and life for leased vehicles, limits are set on how far you are able to drive. Surpassing that limit involves becoming subject to a fee per mile exceeding the limit. To prevent paying set mile fees, ask for written copies of set mile limit agreements from financiers and dealerships and document them.
Expect a Disposition Fee
Leasing is similar to renting a vehicle by the month, in essence. A final payment to help return the car back to normal, called a disposition fee, is required. Disposition fees are paid when returning the vehicle back to the dealership and cover maintenance, cleaning, and other costs. Usually this fee ranges between $300 and $500 and is non-negotiable.
Understand What Money Factor Means
Money factor is a sometimes confusing term used by dealerships in calculating monthly payments. Money factor multiplied by 2400 is equal to APR, or amount of interest paid in a year. Obtaining a low money factor results in lower monthly payments.
Is it Better to Lease or Buy a Car?
As someone reading about the benefits of leasing a vehicle, you are obviously interested a new vehicle. Understanding the difference between leasing and outright purchasing is important to choosing the option most optimal for your life and pocketbook. Although many car leases found in Staten Island are outstanding options, ZOOOMR advises you to fully understand what a lease is and what its advantages are before signing a lease agreement.
You Won’t Own the Car
Owners, not lessees, of vehicles can sell, mortgage, or install aftermarket modifications to a vehicle. Those with leased vehicles cannot perform any of these tasks. Leasing a car is equivalent to using a dealership’s car, not one’s own car. Staten Island car leases do mean lower payments, but that is offset by substantial limitations.
Leasing Cuts Down Up-Front Costs
When purchasing a vehicle, a down payment or trade in is nearly always required. Staten Island car leases do not require down payments. Just submit a security deposit, small acquisition fee, and payment for applicable taxes. One can lower their monthly payments on a leased vehicle by providing a larger sum up front, although this is not required.
No Need to Worry About Selling Car Leases
Selling a used vehicle is challenging, stressful, and often unfruitful. Most people seeking a new vehicle are not comfortable paying a high price for new or young vehicles. High prices can only be commanded by car owners who regularly maintenance their vehicle, a time consuming task that nearly always requires lengthy experience and a high amount of know how. Lessees never have to worry about reselling a used car, which is yet another advantage of Staten Island car leases.
In respect to those paying installments on a financed vehicle, the last payment yields transfer of ownership to the customer, meaning they can do whatever they please. Leasing, although otherwise highly beneficial, is different in not having rights to the vehicle on completion of the final payment. Lessees generally are available to purchase the vehicle at the end of the lease, but are expected to simply return the car following the tenure of the lease.