How To Find The Right Car Leasing Deal
Leasing a car is an option that more people are using on a daily basis. Due to car leases being a more cost friendly alternative compared to purchasing a car, they allow you to enjoy a new car without having to pay full price. As the retail value of cars continues to rise, leasing is a great way for people to drive the car that they want without going over their budget. Because many car leases end before the car needs any repairs, you will also save some time that you would normally spend at the auto shop. Leased cars are covered by a manufacturer warranty, so if the car does require service, all costs will be covered.
The Car Leasing Process
There are multiple factors involved in regards to leasing a car. Consider these factors as you start the process of leasing a car.
Your Payments Are Based On Your Car’s Value
The amount of money that you will pay every month is based on the sale price of the car. To save money, choose a car that has lower value.
You Can Save Money Through Residual Value
Please be aware that every leased car has a residual value percent that is taken into account when determining your monthly payments. The residual value percent helps cover the depreciation of the car. If you want to decrease the amount of your monthly payment, look for a higher residual percentage.
Learn About Your Miles Limit
When you lease a car, you will have a certain number of miles that you are permitted to drive the vehicle each month. If you pass the allowed amount of miles, then you will be charged a fee for every mile that is over your limit. That is why it is important that you understand the amount of miles that you are permitted to drive and the fee for every mile that you go over.
Look For A Disposition Fee
While leasing a car is primarily based around paying your monthly rental fee, be aware that you will be required to pay a disposition fee when it is time for you to return the vehicle. The disposition fee is mandatory.
Learn About Money Factor
Your money factor is just as important as your ARP. Look for the lowest money factor so that you will be able to save money.
You Are Not The Car Owner
When you but a car, it is your personal property and you can do whatever you want with it, even though you may have to make a few payments. However, when you lease a car, you are simply paying to use a car that is owned by the lender. While you will enjoy a lower payment by leasing a car, you will also not be able to sell the car or mortgage it.
Don’t Worry About Selling
Selling a car can be a stressful and difficult experience. Normally, people do not want to pay expensive prices for cars that have been previously used. If you want to sell, you will normally have to abide by a demanding maintenance schedule. When you lease a car, you do not have to worry about buying a car that has increasing resale value or speaking with customers who are looking for transportation because you will not be obligated to do so.
Leasing A Car Prevents You From Paying A Lot Of Money Upfront
When you choose to buy a car and are looking to secure financing, you will be expected to make a down payment or trade in another car. When you choose to lease a car, you will not have to put down any type of down payment. You’ll just have to provide the first month’s payment along with a security deposit, acquisition fee, and taxes. If you are able to put extra money down, you can reduce your monthly payments by paying a larger initial down payment. However, this is not required.
Is It Better To Lease or Buy A Car?
Before you move forward with any decision, it is important that you learn the difference between leasing and buying a car so that you can choose the best available option for your needs. Make sure that you understand the difference between buying and leasing a car before you sign any paperwork.
If you are looking to purchase a car, the final payment gives you the security that the car will finally be yours to own. After you make the final payment, you will receive the title and possess full ownership of the car. However, when you choose to lease a car, you will go through a different process. Under the terms of the lease agreement, you will be required to give the car back to the owner unless you decide to continue the process and purchase the car.