For those who prefer greater flexibility when it comes to car ownership, leasing can be a great option. Many find that the incremental monthly payments make owning a car via lease are far more affordable than paying everything up front. What’s more, retail rates are on the rise. Rather than risk economic insecurity, you may just find that leasing is the perfect option for you.
The advantages of leasing a car are numerous. For one, the lease will likely terminate before you need to make any major repairs to the car. The manufacturer warranty extends throughout the lease duration, and if any major malfunctions occur, responsibility will not fall on you.
What’s Involved in Leasing a Car?
There are several things to keep in mind when deciding whether or not to lease a car. The general details are listed below:
The Car’s Value Determines the Payment.
Many people question how their monthly payment is calculated. The answer varies in specifics from dealer to dealer, but it generally depends on the retail price of the car. The lower the retail price of the car, the lower your monthly payment will be.
Save Money With a Higher Residual Percent.
To account for the decreased price of your car once you eventually return it to the dealer, your contract will include a residual value added to your monthly payment in the form of a percentage. It may seem like a paradox, but if you opt for a higher residual percent, the amount of money you spend will actually be lower.
Pay Attention to the Set Mileage.
Included in your contract will be a set amount of miles you are allowed to drive every month. You will be charged a set fee for every mile you drive over the limit. Be sure to go into the dealership with a general understanding of how many miles you drive every month and factor that into your negotiation.
There Will Be a Disposition Fee.
Your contract may seem just like a document agreeing to rent a vehicle on a monthly basis. Many don’t realize that most dealers will require you to pay a disposition fee when you return your car to the dealer at the end of your lease. The sum usually ranges between $300 and $500, and most dealers require it.
Money Factor Means ARP.
Your contract will likely contain several unfamiliar phrases, such as money factor. This is just another word for ARP. The lower the ARP, the more money you save.
Which Is Better: Buying or Leasing a Car?
The majority of people need a car for a variety of reasons, such as getting to work, transporting kids, or heading out on the weekend. You need something safe and reliable to get you from point A to point B. But the decision between buying and leasing is a big one, and it’s important that you fully understand the issue before moving forward. For some, Memphis car leases are the right decision, but Zooomr advises that you fully grasp what it entails before you sign any contracts or make any binding decisions.
Leasing Does Not Mean Owning .
If you decide to buy a car, you’ll be able to do whatever you want with it, like hook it up with sweet spoilers and paint it electric pink. Leasing a car means that you’re paying a regular fee to use it; it’s still owned by the dealer. Memphis car leases offer the option of lower payments, but in an emergency, you will not be able to sell or even mortgage your vehicle.
Leasing Requires Little Initial Costs.
When you buy a car, you’re going all in, regardless of whether you’re paying everything up front or if you’re taking out a loan to finance it. With Memphis car leases, however, you don’t need to make a down payment. Instead, you are required to pay a security deposit along with the first month’s lease, an acquisition fee, and other smaller fees and taxes. Memphis car leases also allows you the flexible option of paying more up front in order to lower your monthly payments.
You Don’t Have to Worry About Selling Your Old Car.
One huge advantage of leasing is that you don’t have to put in the time and energy to sell your old car once you’ve outgrown it. The whole process can take weeks or even months, require service, and become a huge headache. By leasing a car, you will simply negotiate another contract when your current one terminates.
Many Leases Include the Option of Buying.
If you opt to buy a car via financing, once you make the final payment, or end payment, you will receive a title and officially own the car. With leasing, things are different. Once the contract terminates, you will have the option to buy the car for a sum determined by the dealer. If you do not opt to buy it, you will have to return it to the dealer.