Leasing a car is a wise option you can choose if it falls within your budget. Not only does it provide you with flexibility; it’s the most practical way to use a car. Nowadays, prices of cars are getting high, and it becomes difficult for many people to afford a vehicle. If you’re stuck in such a dilemma, leasing a car can help you get to where you need to go without headaches.
When you lease a car, you won’t have to deal with maintenance issues such as periodic tune-ups and major repairs. Even when the car you are leasing suddenly requires repairs while you are using it, the repair cost will be shouldered by the car leasing company.
What Does Leasing a Car in Involve?
There are many factors that are involved in leasing a car. Here are some of them which you need to consider:
Your Payments Reflect the Car’s Value
Every month you pay essentially for the rent, and this amount is based upon the value of the car you have chosen. If you wish to save on rent, it would be better to rent an economy car rather than a luxurious one.
Higher Residual Percent Saves You Money
You can save a certain percentage of your monthly rental cost by choosing a vehicle with a higher residual percentage that is factored into your payment. This is designed to offset the depreciation of the vehicle.
Understanding Set Miles
When you rent a car, you will have a monthly mileage limit depending on the car. If you go beyond a set mileage, you will be charged for every mile you used that goes beyond your monthly limit. Therefore, always monitor your mileage to avoid extra charges.
Expect a Disposition Fee
When you get to the end of your lease you can expect to pay a disposition fee around $300 to $500. Such fee is just common and normal in the industry.
Understand What Money Factor Means.
Your ARP and your money factor are the same. To save more money, always choose the lowest possible money factor.
Leasing or Buy a Car, Which is Better?
You don’t have to be an expert to determine whether or not leasing a car is better than buying one. You most likely landed on this page because you are looking for a car. However, before you take any action, you have to be convinced with your own decision, and this is possible if you know which you think is better. Leasing Memphis cars is great, but Zooomr will always ask you to understand what you are buying or leasing before you sign any paper or document.
You Won’t Own the Car
Keep in mind that leasing a car is not a rent-to-own plan. Definitely, the car you are renting will never be yours no matter how long you have been leasing it. You only pay for the use of car and not for its entire value. It sounds as though you’re on the losing side, but Memphis car leases can offer lower monthly payments.
Leasing Doesn’t Require Up-Front Costs
When you purchase a car, you are required to make an up-front payment that is usually a certain percentage of the total value of the car. This is like an advance payment you can make to reduce your succeeding payments. However, it’s a big burden if you have a budget constraint. If you choose to try Memphis car leases, you are not required to make an up-front payment. What you pay is the first month of rent, acquisition fee, security deposit, and taxes.
No Worries About Selling Car Leases
Owning a car means maintaining it and selling it in the future when you have a plan to buy a new and a better one. The challenge is to sell your car when it’s already depreciated. It is difficult to find a buyer who is willing to pay higher for a car with lower value. All of these are no longer your concerns when you lease a car.
If you decide to purchase the car, you will pay a monthly amortization fee for a couple of years. The final payment you make means your car is completely yours. In leasing a car, your final payment doesn’t mean the car is yours. Although you can have an option to purchase the car after leasing it, your final lease payment will not entitle you to own the car. Take note that your monthly car rental fee is not a monthly amortization fee.