If you are in the market for a car, leasing can be a great option. The best thing about leasing is it’s actually less expensive than purchasing an auto outright. Since the cost of new cars is rising every year, leasing may be the best choice if you want to enjoy a new car without your pocketbook taking a hit.
Leased Cars Are Also Always Under Warranty.
This is a huge plus, because should some type of mechanical failure occur, the driver is completely covered. However, with the lease agreement likely expiring before the need for services, the warranty likely won’t come into play. It is still a win-win.
What Does Leasing A Car Involve?
Leasing a car involves a few steps that the customer should consider and understand before signing any paperwork:
Your Payment Reflects The Car’s Value.
The vehicle’s sale price determines how much your monthly payment will be. Choosing a vehicle with a lower price will obviously save more money.
Higher Residual Percentage Saves You Money.
To save the most money on monthly payments, find a car with a higher residual percentage. To cover depreciation costs, a leased car’s residual value percentage is calculated into the payments. The higher the percentage, the more money you save.
Understand Your Set Miles.
When leasing a vehicle, understand that the car can only be driven a set number of miles each month. If that number is exceeded, you will be charged a fee per mile. To avoid fee shock when you return the vehicle, always read the fine print.
Expect A Disposition Fee.
You should always expect fees when the leased car is returned. Be prepared to pay what the dealership calls a “disposition fee.” This fee can range anywhere from $300 to $500. If you decide not to purchase the vehicle at the end of the lease agreement, you will likely be charged this fee.
Understand What Money Factors Mean.
A money factor when you lease is the same as an APR when you finance. Always try to get the lowest money factor when you lease a car. It can save you a ton of money.
Is It Better To Lease Or Buy A Vehicle?
There are pros and cons when it comes to leasing and financing. What it really comes down to is personal preference and which option is the right fit for you. It is advisable to make side by side financial comparisons to determine which is more advantageous. Regardless of which one you choose, make sure you read over the fine print with a fine-toothed comb so you have a clear understanding before you sign on the dotted line.
You Won’t Own The Car.
Unlike financing, leasing has a number of stipulations attached. When you finance a car, you can do pretty much as you like as long as you are making payments. With leasing, the car is still owned by the lender. This means you cannot sell the vehicle or do anything else outside what is stipulated within the contract.
Leasing Cuts Down On Up-Front Costs
When you finance a vehicle, in most cases you will be required to have a down-payment or trade-in. No down-payment is required with Mesa car leases. However, you will need the first month’s down payment, a security deposit, acquisition fees and additional taxes. Although it is not required, you may put up additional money to lower your monthly payments.
No Need To Worry About Selling Car Leases.
Selling a car has its challenges. Customers generally scoff at paying higher prices for used cars. And sticking to a strict maintenance schedule is a must. When leasing a car, you are getting a new car that will be maintained by the dealership. You don’t have to worry about getting a clunker, or whether or not the car has a high resale value.
If you have financed a car, the end payment serves as verification that your last payment has been received and the car is now yours free and clear. After making the last payment, you will receive the title outright. With leasing the driver has the option of purchasing the vehicle at the end of the contract, or they can simply turn it in. If you decide to purchase the vehicle, they may move forward.