When it comes to leasing a car, many folks are divided on the benefits of the whole process. For those who have leased in the past, they’d likely recommend it. Those who have never leased tend to be unsure or skeptical. If you fall into the latter group, then this article is just for you!
Leasing a car is essentially renting. Leases can be a cheaper alternative to buying. It’s a great way to get more car for less money. The options that come with leasing can be similar to buying in some way. You still get to test the waters and choose a vehicle that fits your needs as well as your preferences.
What to Expect When Leasing
Leasing involves monthly payments to use a car as your own for a given period of time. Dealerships will have various term lengths and payment options depending on their current offers. Sometimes a down payment is still required, but not always.
When you lease a vehicle, you assume responsibility, but not ownership, of the vehicle. Reading the fine print in the contract is extremely important. Mileage restrictions and other limitations may come along with the agreement. Typically this is the biggest issue consumers have with leasing. However, for most, it doesn’t seem to be a problem.
At the end of the lease, you always have a buy-out option. The residual value after the lease term is typically non-negotiable. Banks calculate expected depreciation prior to the end of the lease, so when the time comes to buy at the end, you may be working with numbers you weren’t expecting. The final selling price, however, is usually negotiable, so you still have the chance to get the price down in the end.
Leasing isn’t for everyone. But for those who want a newer car for a cheaper price it can be a more viable option.