If you’re interested in getting into a new vehicle, leasing is a proven great option. Leasing a car is a very cost-effective method compared to purchasing a new or used car. New cars are becoming more expensive, and used cars often require ongoing repair costs. Leasing a vehicle can get you into one of your choosing without critical financial consequence.
One major benefit to leasing a car is getting to drive it during its best years before the lease agreement ends. By the time it’s ready for major service or repair, you’ll be getting ready to lease your next one. Another benefit to the length of time you have your vehicle under a lease is the manufacturer warranty will cover most all repair issues.
What Does Leasing a Car in Involve?
There are a few factors to consider when leasing a car. Here are a few things you need to consider if you are going to lease your next vehicle:
Your Payments Reflect the Car’s Value.
The less the vehicle under lease costs, the lower your monthly payments will be for the lease. It’s best to pick a car more economically priced in order to get the lowest monthly payment.
Higher Residual Percent Saves You Money.
Another method of keeping your monthly payment cost low is getting a higher residual percentage on the lease. Residual value percentage adds into your monthly payment as a factor for vehicle depreciation.
Understand Your Set Miles.
When choosing your lease, you will be expected to keep your car’s mileage under a certain amount. Each month you must consider how many miles you are able to drive. A fee is assessed for the extra miles past your lease limit. Consider the fees per mile over the mileage on your lease agreement.
Expect a Disposition Fee.
Each lease agreement will come with a disposition fee of around $300 and $500. The disposition fee is expected upon return of the vehicle. Be sure to factor this fee into your overall lease costs.
Understand What Money Factor Means.
Every lease agreement has a money factor, which has the same function as an ARP, or annual percentage rate. Having a lower money factor will help keep your overall costs low.
Is it Better to Lease or Buy a Car?
Deciding between leasing or buying your next vehicle is an important decision. You must consider all the factors that separate leasing from purchasing and the benefits attached to each option. Memphis car leases are usually very valuable agreements. Zooomr recommends getting all the facts before executing your decision for a purchase or lease agreement.
You Won’t Own the Car
When you purchase a vehicle you own it and can do whatever you want with it, even while you make payments on it. When you lease a vehicle, you are paying to use it but aren’t in ownership of the vehicle. You will have lower monthly costs with Memphis car leases, even though you won’t be able to resell that car or have a mortgage on it.
Leasing Cuts Down Up-Front Costs
Many people trade-in their vehicle or make a very considerable down payment when purchasing a new vehicle. Memphis car leases require no down payment. The only things required are payment for the first month and a few other fees, as well as a security deposit. One of the fees is the acquisition fee. Adding a larger initial deposit isn’t required, but does help lower the monthly costs of leasing your new vehicle.
No Need to Worry About Selling Car Leases
Once your lease is up, the vehicle goes back to the leasing company, and you won’t have the responsibility of reselling it. Often depreciation and repair costs make reselling a vehicle very difficult, and often, profit is lost in the sales process. Most people don’t want to pay more for a used vehicle because of ongoing repair costs. Leasing a vehicle allows you to drive vehicles that aren’t easily resold, nor will you have to go through the strenuous process of selling that vehicle when the time comes.
When you lease a vehicle, sometimes the option to purchase the vehicle is available to you. When you buy a vehicle, the end payments cost rewards you with the car’s title. You are free to return a leased vehicle at the end of your agreement with no expectation to purchase, which gives you the unique opportunity to drive cars you enjoy without the responsibility of new car ownership.