Many people would consider leasing their car as an excellent choice. Car leases are much more affordable and cheaper than an actual car payment. With a car lease, you can enjoy a great new car for a much smaller payment. The retail prices of cars are getting so high that leasing might be the only way you get a car without hurting your bank balance and budget.
Most car leases tend to end way before any major repairs and services are needed. This means less time spent at the mechanic store. In the event of some urgent repair, the manufacturer warranty that comes with your car should cover the cost.
What Does Leasing A Car in Involve?
Here are some important points you need to understand when deciding and planning to lease a car.
Your Payments Reflect The Car’s Value.
The sale price of the vehicle is used to decide how much your monthly payment is. Therefore, you should choose the vehicle with a lower value to make the best savings on your lease payments.
Higher Residual Percent Saves You Money.
Every leased car has a residual value percent that would be accounted for in your monthly payments. This is used to consider how much the value of the car would depreciate. Therefore it is recommended to choose the higher residual percentage to enjoy lower monthly payments.
Understand Your Set Miles.
When you lease a car, you would only be allowed to drive a set number of miles each month. When you go over this limit, you would be a charged an extra fee for every mile over the limit you drive. Therefore, to avoid surprises, you should know how many miles you are allowed to drive per month and how much you would be paying if you cross this set limit.
Expect a Disposition Fee.
Renting a car could be a lot like paying a monthly rent. However, you are still expected to pay the disposition fee of about $300 to $500 when you return the vehicle. This is usually required from you.
Understand What Money Factor Means.
Your money factor is the same as your ARP. Therefore to save the most, you need to try get the lowest money factor.
Is it Better to Lease or Buy a Car?
It’s a no-brainer that you are here looking for the best and most affordable way to get a car. However, before you start car hunting, it is important that you learn the pros and cons of leasing versus buying your vehicle to decide what the best choice for you is. Memphis car leases might be a great option, however Zoomr strongly believes that you should comprehend these differences before you commit to a vehicle and sign on any paperwork.
You Won’t Own The Car
When you buy a car, it would be yours and you can do whatever you want with it, even if that means you would have to be making car payments for a while. When you lease a car, you are paying for a vehicle that the lender owns. Memphis car leases would mean smaller payments, but it also mean you cannot sell or mortgage the vehicle.
Leasing Cuts Down Up-Front Costs
When you are buying a car and need to finance it, you would need to make a down payment or trade in your older vehicle. However, when you choose the Memphis car leases, you won’t need to make a down payment. All you need to do is make the first month’s payment, a security deposit, and some fees and taxes such as the acquisition fee. If you can afford to put some extra money in, you could lower your payment. This isn’t required but is possible for lower monthly lease payments.
No Need To Worry About Selling Car Leases
It is quite a challenge to sell your used cars. Customers don’t want to pay too much for your used vehicle and you really have to maintain them strictly in order to sell them. However, when you lease a car, selling the car is no longer your problem or responsibility. This means you don’t have to think about buying a car with a good resale value, or even look for good customers to buy your car.
When you buy a car and make the final payment, the car is yours! You own the car and will receive the “title” and can do whatever you want to with the car. It is different when you lease a car. Although you could choose to buy the vehicle after the lease is over, the car does not automatically become yours. You would have to choose to either return the car or go ahead and purchase it.