It’s no secret that great automobiles are getting more and more expensive. One way to get around this is to lease a new vehicle. Leasing can be a great option for people who are cost-conscious. Better still, if you’re on a tight budget, leasing may be the only option you have to get behind the wheel of your dream car.
Another benefit of leasing is that your vehicle will always be under manufacturer warranty, and as such, it’s likely that all major repairs will happen well after your lease has ended. So no wasting time in line at the mechanic or paying for costly repairs.
What Does Leasing a Car in Involve?
There are a lot of different aspects to consider when leasing; sometimes it can be a little overwhelming. But taking the time to understand the main points below will give you a leg up when you’re looking to lease a new car, and certainly save you time and money.
Your Payments Reflect the Car’s Value.
Your monthly lease payment directly reflects the value of the vehicle you’re looking to get into. The most straight-forward way of lowering your payment is to choose a vehicle with a lower value.
Higher Residual Percent Saves You Money.
Try to get into a vehicle that has a higher residual percentage. Vehicle depreciation is factored into your lease payment through the residual value percentage. A higher percentage means that the car has lower depreciation, which means you save more cash.
Understand Your Set Miles.
There are a certain number of drive miles that you’re allotted on a lease. It pays to do your homework on this particular point. Make sure won’t be exceeding the mileage limit and, if you do, find out what the charge per mile will be for if you go over.
Expect a Disposition Fee.
When your lease ends and you return the vehicle, you’ll most likely be expected to pay a disposition fee. This usually runs between $300 and $500. Be sure to inquire about this fee up front so that you can factor it into your overall budget.
Understand What Money Factor Means.
Aim for the lowest money factor you can get. This is the same thing as your ARP, so the lower it is, the more you save.
Is it Better to Lease or Buy a Car?
Memphis car leases can be fantastic options. But understanding your personal needs — as well as the distinctions between leasing and purchasing a car — is key to deciding which option is best for you. Zooomr believes that, before you sign anything, you should know exactly what you’re getting into.
You Won’t Own the Car
This one is pretty straightforward: you do not own the car. The company that leased you the vehicle owns it. You’ll be paying lower payments than if you’d purchased the car yourself, but you can’t transfer, sell, or mortgage the vehicle.
Leasing Cuts Down Up-Front Costs
When purchasing and financing a new car, it’s usually required that you make a large down payment or trade in your old vehicle. Sometimes you’ll need to do both, depending on the value of your trade-in.
When you opt to go with Memphis car leases, you simply provide the first month’s payment, along with a security deposit and a few other taxes and fees, and you’re driving away in your new car. Of course, you can also choose to add in extra cash to lower monthly payments, but this is never required.
No Need to Worry About Selling Car Leases
If you’ve ever sold your old vehicle, you know how much of a pain it can be. Listing it for sale, spending time haggling with potential buyers, and even with a strict, routine maintenance history, customers generally don’t want to pay high prices for a used vehicle.
You don’t have to contend with any of that when leasing. Nor will you have to worry about getting a vehicle with a high re-sale value. When your lease is up, you simply return the car and save a lot of time, money and hassle.
If you’ve financed a car, the end payment means that you’ll receive the title, and it’s now your vehicle to do with as you please.
On the other hand, leasing means that you’ll need to return the vehicle once the lease is over. Purchasing the car that you leased is always an option, though most people simply sign a new lease and get into a brand-new vehicle.