If you are looking for a fantastic way to get the car you need, leasing may be the best option. Leasing is a budget friendly choice and more cost effective than making a purchase. Why not enjoy the benefits of driving that luxury vehicle without the payment that would be required if you bought it? Leasing is the best way to drive an awesome vehicle without breaking the bank.
A lease is usually for a term of 3-5 years, which is plenty of time to allow the manufacturer’s warranty to cover service needs. No one wants to sit in a mechanic’s shop having costly repairs done. Because these vehicles are still covered under warranty, if there would be a service interruption, it would be covered by the manufacturer. What could be better than that?
What Does Leasing a Car in Involve?
There are many aspects of leasing a car. Here are some things that you need to understand the leasing process:
Your Payments Reflect the Car’s Value
Your payment amount will depend on the sales price of the vehicle. The higher the vehicle’s price tag, the higher the payment will be. If you want a low monthly payment, then you need to opt for a car that has a lower value.
Higher Residual Percent Saves You Money
The vehicle’s depreciation is factored into the monthly payment through what is called a residual value. To get a payment that is on the lower end, you need to get a vehicle that has a higher residual percentage.
Understand Your Set Miles
A lease sets the mileage amount that you can drive each month. This is calculated in the terms of the lease. Those who go beyond the allotted miles will be charged a fee per mile. It can be quite costly to have overages. Before signing a lease, make sure that you understand the mileage terms completely.
Expect a Disposition Fee
Think of leasing a car as a little bit more than what you would pay for a monthly rental fee. However, keep in mind that there will be a disposition fee upon returning the vehicle. You will be expected to pay between $300-$500 when you return the car.
Understand What Money Factor Means
Think of the money factor in a lease as the ARP in a purchase. You always want to strive to get the lowest money factor in order to save big bucks.
Is it Better to Lease or Buy a Car?
You must be searching for a car, especially, since you are visiting this page. Making a decision to lease a car is important. You must know all the facts about a lease and purchase to see the option that best works for your situation. You need to completely understand what you are getting into before you sign for a Memphis car lease.
You Won’t Own the Car
If you purchase a vehicle, the car will be yours to do with what you want. You will need to make payments for a specific period of time. However, when you are leasing a car, you pay the lender to use their vehicle. You will never get a title or have any ownership rights to the car. Many people choose Memphis car leases because they can get a lower payment, but it also means that you are not paying toward the purchase. You will never have a tangible asset that you can sell.
Leasing Cuts Down Up-Front Costs
To finance a new vehicle, the lender will want you to have a down payment or trade-in with value. However, a Memphis Car lease doesn’t require a down payment. Though, you will be required to pay a security deposit, acquisition fee, and taxes. Any extra money that you put into the lease will help to lower your payments. You can get smaller monthly payments by putting more money down, but this is not required by the lender.
No Need to Worry About Selling Car Leases
Selling a car is a challenge. Most customers don’t want to pay a high price for a car, though you may not want to sell it at all. You must stay on top of maintenance needs. Leasing a car is a bit different. You don’t have to worry about a purchase. It is not your job to market or sell the automobile.
When you are involved in a purchase, the vehicle is yours at the end of the term. However, a lease doesn’t do anything along those lines. You receive a title with a purchase, and with a lease, you turn the car back in. You do, however, have the option of purchasing the vehicle at the end of your lease. Keep in mind, the car is not yours to the lease end date, and you must give it back and pay any mileage that you owe.