Choosing to lease a car could be the option you are looking for. Some do not know that car leases will give you a lower car payment than what you can expect from a financed vehicle. Since the retail price of cars is steadily rising, this option will allow you to enjoy the vehicle you want without breaking your budget.
One popular benefit is the lease usually ends before the car needs expensive repairs, so you will not have to waste your time at the auto repair shop. Even if a necessary repair is required, leased cars remain under the manufacturer warranty, so all repair costs will be covered.
What Does Leasing a Car in Involve?
There are many things involved when you lease a vehicle. Below are a few things you should keep in mind when considering a car lease:
Your Payments Reflect the Car’s Value.
Your monthly lease payment is dependent upon the car’s sale price. If you want to save money, the car’s value should be on the lower side.
Higher Residual Percent Saves You Money.
The residual value percent of the leased car is used to calculate the monthly payments. This covers the depreciation of the car. To receive the lowest monthly payments, look for a vehicle with a high residual percentage.
Understand Your Set Miles.
When you opt for a car lease, you will be given a set number of monthly miles that you can drive. You will be required to pay a fee for each additional mile. Be sure to go over all this information before you sign the lease. You do not want to deal with unexpected charges.
Expect a Disposition Fee.
The costs involved with leasing a vehicle are a little more than a monthly rental. You should know that you will need to pay a disposition fee upon returning the vehicle. The fee that is usually required is $300 to $500.
Understand What Money Factor Means.
This is not too hard to understand as your money factor is your ARP. The lowest money factor will help you save a lot of money.
Is it Better to Lease or Buy a Car?
You are visiting this page, so you are likely in the market for a new car. It is important that you know the difference between leasing and buying so that you choose the best option. Memphis car leases can be the right option, but Zooomr thinks that people should know exactly what they are getting into.
You Won’t Own the Car
One important thing people need to understand is they will not own the car. When you finance a car, you will be given the title when you finish paying for the vehicle. This is not the case with a leased vehicle. You will be paying to use a lender’s car. You will be getting lower payments with Memphis car leases, but you cannot mortgage the vehicle nor can you sell it.
Leasing Cuts Down Up-Front Costs
If you opt to finance a vehicle, more than likely you will trade in a vehicle or make a significant down payment. Memphis car leases do not come with large down payments. You just need to leave a security deposit, your first month’s payment, an acquisition fee, and pay the required fees and taxes. Of course, if you decide to pay some extra money, this can lower your monthly payments, but this not necessary.
No Need to Worry About Selling Car Leases
Most people know that selling a car can be difficult. People do not want to pay a high price for a used car. Of course, if you want to get at least some of the money back, you will have to keep up with the maintenance schedule. You should know that you do not have to worry about purchasing a car with a high resale value when you lease a car. You will not have to find a buyer for you vehicle either.
There is an understanding that you will receive the title when you make the final payment on a mortgaged vehicle. This is not the case with a car lease. You can opt to purchase the leased car at the end of your contract, but you do not automatically get the car or the title. You are expected to bring the car back to dealership you leased it from.