Leasing a car can be a dream come true for some people, and there are many reasons for this. Some are simply excited to have a new car while others just want to have a new car without paying retail prices. No matter how you look at it, leasing is a great option for those who want to have a nice car and save a sizable chunk of cash.
There are a lot of pros for leasing a vehicle. For example, most leases end before the car’s warranty expires. This means repairs or services are covered, which puts a smile on people’s face.
What Does Leasing a Car Involve?
This is a big question that needs to be broken down. The following are some of the things involved in leasing, which should help you plan your next move.
Your Payments Reflect the Car’s Value.
Okay, you are probably wondering how the monthly payments are figured out. Well, the monthly payment depends on the sale price, so those who want a small monthly payment should look for the most economic vehicle on the lot.
Higher Residual Percent Saves You Money.
The lessee needs to know what the car’s residual value percentage is. This is different for each car and is added to your monthly payments, which is used to cover the car’s depreciation. If you want the lowest monthly payment possible, you should look for a car with the highest residual percentage value. Ask your salesperson for those numbers, and start taking notes.
Understand Your Set Miles.
One thing that most people know about leasing a car is that there are set miles. You can think of these as your monthly mile allowance. You cannot go over this allowance, or you will be charged a fee for each additional mile. Find out how much this fee will be, and be sure to keep an eye on your miles.
Expect a Disposition Fee.
No one likes fees, but this fee is generally unavoidable. It is called the disposition fee, which is expected when you finally return the vehicle at the end of your lease. Do not fret though; it is usually $300 but no more than $500, but you should still inquire just to be sure.
Understand What Money Factor Means.
The money factor is pretty much the same as your ARP. This means saving requires that you get the lowest possible money factor that you can.
Is it Better to Lease or Buy a Car?
You are here so, of course, you are searching for a car. Deciding to lease or buy a vehicle can seem like a difficult choice. Sure, Memphis car leases are awesome, but Zooomr thinks you need to be properly informed to make a wise decision.
You Won’t Own the Car
You will not own the car, so this means Memphis car leases can offer you lower payments than what you might pay for a purchased vehicle. This is possible because you are essentially renting the car from the lender rather than buying it. Sure, you won’t be able to sell or mortgage the vehicle, but you are getting lower payments.
Leasing Cuts Down Up-Front Costs
Purchasing a new car may seem exciting unless you have to finance it. The problem with financing is that you will likely have to take a large sum of money out of your account to make the down payment. Of course, there are some who trade in an older vehicle, provided that its value is high enough to cover the down payment. Those that lease with Memphis car leases do not need to worry about this down payment. All you need to worry about is the first month’s payment, security deposit, taxes, and additional fees. Those who want a lower payment can still put down a large sum of cash, but this is optional.
No Need to Worry About Selling Car Leases
Selling a used car is hard because you will not receive most of the money you invested in it. It should be noted that those who want to sell their cars will have to follow the maintenance schedule to a T, which is not always easy. Those who lease a car will not have to worry about getting a car with a high resale value or do any potential customer hunting. The challenge of selling the leased vehicle falls on the dealership.
When you finance a vehicle, you will own the car when you pay your last payment, which means you finally get the vehicle’s title. The title gives you the opportunity to do whatever you want with the car since it’s yours. You will not receive the title at the end of your leasing term, unless you opt to purchase the car. What you are expected to do at the end of your term is simply return the car, and that is it. After people return the leased vehicle, they get a new model.