Car Lease Deals
You don’t need to buy a new car to enjoy a new car. Instead, you can take a much more affordable route, which is to lease a car. Many consumers have found themselves stuck as their pay hasn’t increased yet retail car prices have been on the rise. Fortunately, leasing a car is a simple and logical solution. An added bonus is that when you lease a car, you don’t need to worry about maintenance. Since all leased cars come with a warranty, you can rest easy that you will not be on the hook for any surprise repairs. As you can already see, leasing a car makes a lot more sense than owning a car in today’s world.
What Does Leasing a Car in Involve?
Leasing a car isn’t as complicated as you might think. In fact, it’s quite simple. If you’re not familiar with the process of leasing a car, it’s broken down for you below. Feel free to refer to this list whenever you deem it necessary.
Your Payments Reflect the Car’s Value
If you’re a savvy consumer, then you want a vehicle that provides comfort, safety and style without breaking your budget. If you lease a vehicle that’s too expensive, then you will be adding unnecessary stress to your life. If you lease a vehicle that’s cheap, then you might not have the convenience and safety features you desire. It’s highly recommended that you research retail prices on several cars, then determine which car suits you best. Your monthly lease payments will reflect the price of the car. In other words, a car with a higher retail price will have a higher monthly payment, and a car with a lower retail price will have a lower monthly payment.
Higher Residual Percent Saves You Money
Residual Price refers to how much it will be worth when the lease ends. Be sure that your residual price reflects the expected depreciation of the car’s value.
Understand Your Set Miles
The one potential downside of leasing a car is the set miles. For example, if you’re leasing a car for three years and your annual miles is 12,000, then if you drive more than 36,000 miles over that three-year time frame, you will have to pay a fee. The fee is based on how many extra miles you drove, and these fees can add up fast. Therefore, be sure you know that per-mile number, and if you find that you might go over the allotted miles, renegotiate your deal with the lender.
Expect a Disposition Fee
This fee is often overlooked by borrowers, primarily because it’s not always explained to them by the lender. Only someone reading the fine print will notice it. A disposition fee is that fee you must pay when the lease ends, and it usually ranges between $300 and $500.
Understand What Money Factor Means
This basically means the same thing as Annual Percentage Rate (APR). If you have good credit, be sure to mention that so you can knock down the percentage. This will save you money.
Is it Better to Lease or Buy a Car?
As stated above, leasing a car makes more sense in today’s economy. However, make sure you review every detail prior to signing on the dotted line. Also, never be afraid to walk out of a dealership when negotiating a lease. They won’t let you leave. Even if you do leave, they will call you with a better deal.
You Won’t Own the Car
One of the beauties of Memphis car leases is that you don’t own the car. Therefore, once you’re done borrowing the car, you don’t have to worry about it anymore. Just keep in mind that you can’t sell or mortgage the vehicle.
Leasing Cuts Down Upfront Costs
It’s not required to use a down payment for Memphis car leases. That said, if you put down a larger down payment, then your monthly fees will be lower. If you choose not to use a down payment, then you will only be expected to make the first month’s payment along with a security deposit and necessary fees and taxes.
No Need to Worry About Selling Car Leases
An often overlooked advantage to leasing a car is that you never have to worry about hunting down a buyer when you’re ready to sell your car. Instead, when you’re done with the lease, you’re done with the car. There is no long-term commitment.
When the lease is complete, you will have the option to purchase the vehicle. If you go this route, then you will be given the Title, which means you will officially own the car. Of course, this is not necessary. When you buy a car, you have no choice but to own it. When you lease a car, you have a choice on whether or not to purchase it when your lease is complete.