If you’re considering a new car, you should think about leasing options, because they offer a great deal of flexibility and allow you to get on the road at a fraction of the price of buying. Retail prices are up since last year and are expected to continue to rise. Leasing allows you to you to make affordable monthly payments, and options are available for just about any budget.
Leasing doesn’t just save you money on the price of the car. Keep in mind that manufacturer warranties extend beyond the period of the lease. This means that any repairs you have to make to your car incurred by normal driving will be covered by the dealer.
What Does Leasing a Car in Involve?
The contract you sign to lease a car is a legal document and can be hard to understand. It’s a good idea to learn all that you can before you decide to sign it. Continue reading and find about a few general things you’ll see on your lease.
Your Payments Reflect the Car’s Value.
Your monthly payment is determined in large part by the retail price of the car you’re interested in leasing. Keep your payment low by choosing a car with a lower value.
Higher Residual Percent Saves You Money.
You will also be charged on a monthly basis for the value your car loses as time goes on. This is factored in to your monthly payment with a residual percentage. Higher residual percentages actually translate into lower monthly payment, so keep that in mind when negotiating your lease.
Understand Your Set Miles.
Another part of your lease agreement will be limit of miles you can drive each month. If you go over the limit, you will be charged for every mile you drive. Go into the dealership knowing how much you drive on a regular month and make sure to ask the salesperson what the limit is and what the overage fees are.
Expect a Disposition Fee.
Many drivers leave the lot thinking they’ve taken care of everything and that they’ll only be paying their monthly rate for the rest of their lease. They are wrong. Dealers also charge a disposition fee when you return your car that ranges between $300 and $500.
Understand What Money Factor Means.
The term money factor is just another way of writing ARP. Shoot for the lowest ARP/money factor to save the most.
Is it Better to Lease or Buy a Car?
So, the question now is whether you should buy or lease a vehicle. There are advantages to both, and while Memphis car leases have proven the best option for countless drivers, Zooomr holds that you need to make sure you can make an informed decision. The only way to do that is by comparing and contrasting both options before you sign any contracts.
You Won’t Own the Car
One thing that’s crucial to understand is that leasing is legally not equivalent to buying. You will not hold ownership of the car. Leasing a car is kind of like renting an apartment; you are paying to use it for a given period of time. Memphis car leases offer amazing monthly payments, but you will not be able to sell your car or put it up for mortgage.
Leasing Cuts Down Up-Front Costs
On the plus side, you won’t have to deal with the negative aspects of buying a car, like putting down a huge initial payment. Even if you’re financing a car, you’re going to need to drop thousands at the outset. With leasing, there aren’t the same barriers. Memphis car leases ask only that you pay for the first month, a security deposit, an acquisition fee, and other minor taxes and fees to begin your contract. You will also have the option to pay more up front if you would like to lower your monthly payment, but that is not required.
No Need to Worry About Selling Car Leases
One of the biggest headaches involved in buying a car is selling it when it’s time to move on. When buying, you also have to consider the resale value before you decide on the right car. Leasing eliminates that concern. When your lease concludes, you just need to return it to the dealer. This added bonus saves you time and energy.
If you purchase a car with financing you own the car once you make your final payment and receive a title as proof of ownership. When you lease a car, making your final payment does not mean that you own it. Ownership is still retained by the dealer, and unless you arrange to buy the car, you will be expected to return it once the contract terminates.