The prospect of owning a car is tantalizing, though it may be an expensive affair. For this reason, a majority of individuals are now opting to lease cars, as it is a more affordable way of owning a vehicle. The rising price of procuring new vehicles also further encourages leasing, as folks look for alternative methods of attaining automobiles without breaking the bank.
Leased cars bear an advantage of new cars, primarily because they are under a driver’s care for a limited period. This means that they are less likely to require service or maintenance within the agreed upon time. Moreover, the vehicles are covered by the manufacturer’s warranty, which guarantees free repairs in case the need arises.
What Does Leasing a Car in Involve?
Before leasing, one must be well acquainted with the entire process. Some of the procedures that an individual needs to familiarize with include:
Your Payments Reflect the Car’s Value.
Monthly installments are directly proportional to the market price of the car involved in the transaction. Therefore, owners are advised to choose vehicles that are affordable if they are looking to save that extra dime.
Higher Residual Percent Saves You Money.
In addition to the monthly dues, the leasing companies charge an additional fee, named the residual percentage, to cover for depreciation costs. Typically, vehicles with higher residual percentage values tend to have a lower monthly total payment.
Understand Your Set Miles.
Leased cars are like borrowed items, so they have to be taken care of. Before a car is given out, the two parties agree upon a monthly mileage cap. Penalties are imposed if the mileage is surpassed. Prospective owners are required to know the prearranged distance and stick to it religiously to avoid unnecessary additional charges.
Expect a Disposition Fee.
At the end of the leasing period, renters are obligated to pay a disposal fee. In the contemporary market, the price ranges around an approximate $500 and is often mandatory among leasers.
Understand What Money Factor Means.
While looking for a car to lease, you should prioritize those with substantially lower money factors, as they will significantly save you a load of cash.
Is it Better to Lease or Buy a Car?
The first step in the process of procuring a vehicle is research, which is usually conducted online (like visiting this website). Many people are often faced with the dilemma between opting for either purchase or leasing a car. For this reason, it is imperative to seek advice and learn the pros and cons of each before making the ultimate decision. Though Memphis car leases offer fantastic deals, Zooomr maintains that individuals should be well conversant with the ideas before committing to any deal.
You Won’t Own the Car
Purchasing a car and leasing it are two different things. If you buy a car, you have full control over it. On the contrary, a leased car is like a rental, where an individual pays to use the services of a good owned by another party. Renting a car from Memphis car leases may incur lower monthly charges, but the downside is that you cannot have an outright say over the vehicle’s operations.
Leasing Cuts Down Up-Front Costs
Once you inquire about the purchase of a car, you are required to make full payment or give a sizeable amount as deposit followed by predetermined monthly installments. In the case of Memphis car leases, down payments are not obligatory. In their place, renters are asked for the first month’s fees, security deposit, miscellaneous fees, and taxes. If the client can raise additional funds at the time, it is accepted and subsequently lowers the ensuing monthly deposits. This, however, is entirely out the involved customer’s volition.
No Need to Worry About Selling Car Leases
The process of the sale of a car, specifically a used one, can prove to be a daunting task. Buyers often undervalue used vehicles and sellers usually have to adhere to an austere maintenance timeline. On the other hand, leased cars do not bear these stresses, as it won’t be your job to dispose of the car once you feel it has served its purpose. This makes the leasing process much easier, as customers do not have to search for cars with higher resale values.
When buying a car, the end payment transfers its ownership to you. Once the payment is made to the last penny and the rights are handed over, you have full, autonomous control over the car’s operations. Contrariwise, at the end of the lease period, you are expected to return the vehicle to its owner. The exception comes in where a renter decides to activate the purchase clause, where he/she pays for the car’s full value. This option is usually included in some deals, though not all of them.