Car Lease Deals
New cars get more expensive every year. It’s harder than ever to find a car that won’t break your budget. The solution may be to lease rather than buy. Leasing is much less costly than buying a car outright, and this makes for a fantastic way to get into a car you like at a price you can afford.
Since leased cars are new, they are covered under the manufacturer’s warranty the entire time you lease the car. This means you’ll spend less on repairs if the car happens to break down. However, it’s likely your lease will end early enough your car won’t even need any major work done. This saves you from wasting hours in a service shop or having to go without a car except for the times you take the car in for routine maintenance.
What Does Leasing a Car Involve?
There are several things to know about the process of leasing a car. It’s important to understand the following details before you head to the car lot:
Your Payments Reflect the Car’s Value
The monthly payments on an auto lease agreement are determined by the value of the car you select. Therefore, if you want the lowest cost, you want to look for an economy car with a lower sale price.
Higher Residual Percent Saves You Money
The monthly payment for a leased car also includes a fee that covers depreciation. This extra fee is the residual value percent. You’ll get lower monthly payments when you get a high residual percentage on your lease contract.
Understand Your Set Miles
When you lease a car, you are limited in the number of miles you can put on it each month. If you’re over the limit, you have to pay a fee for each mile you drove in excess. Therefore, it’s important to know how many miles you’re allowed and how much you’ll have to pay if you exceed them.
Expect A Disposition Fee
While leasing a car is similar to having a monthly rental car, there is one big difference. You’ll usually have to pay a disposition fee at the end of your lease. These could be as much as $300 to $500, so you’ll want to be prepared for the cost.
Understand What Money Factor Means
The money factor happens to be the same as the ARP. That means you’ll end up with the lowest monthly payments if you get a contract with a low money factor.
Is It Better to Lease or Buy a Car?
If you’re reading this article, then it’s a sure bet you’re interested in a new car. Before you take the plunge, it is important to understand the difference between buying and leasing. Memphis car leases can be fantastic opportunities, but Zooomr suggests you take your time and understand the contract before you sign.
You Won’t Own the Car
When you purchase a car, you can do whatever you want with it even while you make payments on it. When you lease a car, it just means you’re more or less renting it from the lender or dealer. Memphis car leases might mean you have lower payments, but keep in mind, you don’t actually own the car, so you can’t sell it or take another loan out on it.
Leasing Cuts Down Up-Front Costs
Traditionally, when you finance a new car, you need to put down a large down payment or at least trade in a vehicle. When you look into Memphis car leases, you’ll discover you won’t need a down payment. You’ll be required to pay the first monthly payment, acquisition fee, security deposit, and miscellaneous fees and sales taxes. If you want to make a large initial investment up-front, that will drop your monthly payments, but it isn’t necessary to do so.
No Need to Worry About Selling Car Leases
Trying to sell a car you’ve bought can be a challenge. It’s difficult to find someone who will pay what you want for the car, and in order to get a good price, you need meticulous service records. You don’t have this worry when you lease. You don’t even have to try and lease a car that’s popular and has a good resale value because it isn’t your responsibility to sell a leased car when you’re through with it.
Once you’ve made the final payment on a car you buy, the car is all yours. You’ll get possession of the title so you can sell it or do what you want with the vehicle. A lease contract is entirely different. When you make your last payment, you have to return the car to the dealer. If you want to keep the car, you can negotiate a buying price, but if you don’t go ahead with the purchase, you lose the car.