A new year will soon be upon us. Your list of resolutions is stuck to your refrigerator as a daily reminder. Do you have leasing a new vehicle on the list? We have some great reasons why you should add it on, bolded and *starred*!
What is a Car Lease?
Think of a car lease as something else that you might rent, like an apartment. When you initiate a rental agreement, there are fees you are required to pay, like a deposit. With a vehicle lease, you will pay some initial fees. As with an apartment, you pay a monthly payment, but you don’t own it. It’s the same with a car lease. When your apartment rental lease is up, you move out. When a vehicle lease is up, you return the car. Our Ford Sales Manager likes to say, “You rent items that depreciate and purchase items that appreciate.”
Let’s look at some benefits of leasing a car.
Lower Monthly Payment
Typically, a lease payment is lower than a finance payment if you borrow money to buy the car. With financing, you are paying for the vehicle plus interest. With leasing, your payments are calculated by adding the depreciation amount plus sales tax and a financing fee. The depreciation is the value that the car has lost while you have driven it. You have a lower payment because you are not buying the vehicle outright, but are paying for using it.
Lower Down Payment
When you buy a car, the down payment can run up to 20% of the purchase price. Upfront money for leases is much lower. You will usually have to pay the first months’ payment plus taxes, title and registration fees.
Lower Repair Costs
When you lease a vehicle, it usually is short-term, within the warranty period. You are driving the vehicle during the time when it is most trouble-free. Because of this, the repairs you would normally have will be covered under the warranty from the manufacturer. But you want to review the lease agreement to make certain you understand what is covered and what is not.
No Selling Your Vehicle or Trading It In
When you want to get a new car, you may have an old one you want to sell or trade in. Selling outright can be a hassle and trading in may not give you the value you want. But a lease is hassle-free. When the lease is over, you return it and you are done. If you find yourself loving the car you leased, you may have the option to purchase it instead of returning it. If you have equity in the car, you might be able to trade it in.
New-Car Experience
Do you love getting a new car? A lease will usually last two to four years. So when the lease is up you can return it and upgrade to new car more often. When upgrading, you can get the latest and greatest safety and technology features.
More Cars to Choose From
Sometimes qualifying for financing may be difficult, especially if the car you want is a more expensive model or you want the higher trim level. But since a lease typically comes with a lower monthly payment, you have more flexibility on what you can afford, giving you a larger range of vehicles to chose from.
Let Wendle Ford Offer You a Lease
Whether you decide to lease a car or buy one, we can help you decide. We can show you the different payment plans for both options. You should consider what monthly payment you would like and your driving habits. If you don’t drive lots and lots of miles, leasing might be great for you. We will discuss your driving intentions and find what is best for your budget. View our current inventory and pick out what you want. Then come see us for a drive!
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