A great with leasing is that the time spent with the mechanic sorting out the vehicle servicing needs or major repairs is eliminated. The saving made on the time and cost spent at the mechanic’s shop is thanks to the vehicle manufacturer warranty that covers all your car servicing needs including all repair costs.
What Does Leasing a Car in Involve?
Before making a commitment in leasing your next car, you should first understand the main aspects in a leasing arrangement. Detailed below are the key considerations that will help you learn more about leasing.
Your Payments Reflect the Car’s Value
The monthly payments you will make to the lessor or the lending party for the car is determined by the price tag of the vehicle. The lower the value of the car, the lower the monthly lease payments made. Therefore, to make more savings, opt for a car with a lower price tag.
Higher Residual Percent Saves You Money
For every car leased out, a residual value is factored in the computation of the lease payments. Due to the vehicles use, the depreciation costs and the loss in value of the car are both factored in the residual amount. Settling for an automobile with a higher residual worth should lower your monthly lease payments.
Understand Your Set Miles
Your lease agreement will have a detailed section stipulating the miles covered that are allowable by the lending party. A specific fee follows the extra miles covered, that is pegged on the additional miles traveled. It is advisable that you understand the miles allotted to you in the agreement as well as the fee on the extra miles so as not to fall victim of experiencing unnecessary costs.
Expect a Disposition Fee
When compared to the car rental agreements, lease payments are considerably higher. As the leasing party, you are to cover for a disposal fee of the vehicle that ranges from $300 to $500. This explains the higher value of the lease sums.
Understand What Money Factor Means
APR (Annual Percentage Rate) is to lending, as money factor is to leasing. Targeting the least value of the money factor should be your aim if you want to make considerable savings.
Is it better to Lease or Buy a Car?
The question of whether to buy or lease your next car is answered in understanding the option that best fits your situation. While there are great deals in car leases offered by Memphis, we at Zooomr believe in you comprehending the options available before making any commitments.
You Won’t Own the Car
Transfer of title gives ownership to the car buyer. While this the case for car purchase arrangements, leasing contracts have the lending party retaining the ownership status. Memphis offers lower payments, and the ownership title is not transferred. In this deal, therefore, you cannot sell or mortgage the car.
Leasing Cuts down Up-Front Costs
Purchasing a new car requires a down payment to be made or in some situations, a trade-in will do. With car leasing from Memphis, there are no down payments necessary. The only requirement would be an acquisition fee, a first month’s payment accompanied by a security deposit as well as other accompanying expenses and taxes. The arrangement further allows for you to make a higher initial payment if you are in a position to do so.
No Need to Worry About Selling Car Leases
When it comes to the sale of a car, there are several challenges posed. Top among them is that most buyers quote a figure far less than the asking price and for you to fetch more on your vehicle, the vehicle must be well maintained, which does not come cheap. All these hustles are eliminated in leasing agreements, and indeed, the worry too of selecting a vehicle with a higher resale value is eliminated.
In car purchasing arrangements, final car payments mark the end of the contract with the ownership title transferred to you as the buyer. Some car leasing arrangements allow for the same kind of arrangement as the purchasing deals. However, for most leasing arrangements, the final payment marks an opportunity for another contract for you to get a new car.
Having understood your options gives you the power to make an informed choice.