Leasing can be a good deal for some and a bad deal for others. Before you decide to lease or buy your next new vehicle, it is important to understand both the advantages and disadvantages to each. Learn where to find new good car lease deals, how much your lease will really cost, and more.
What Exactly is a Car Lease?
Leasing means you’ll never own your new car, instead you pay to use it for an agreed upon period of time. At the end of the lease term you can return or buy the vehicle.
Why is Leasing a Good Idea?
- If you enjoy driving a new vehicle every few years, leasing is an excellent choice for you.
- If you plan to trade in your vehicle before completing your loan payments it is unlikely the trade-in value will pay off your remaining debt.
- If you’re looking to drive a more expensive car, that’s perhaps out of your price range, leasing a great option. Since leasing payments are usually lower, you’ll be able to drive the car you want for less.
Why is Buying a Good Idea?
- If you plan to pay cash for your new vehicle or own it for years after you’ve paid-off the loan, then buying is a better choice for you.
- If you drive more than average, buying is a better choice for you. Lease agreements limit the number of miles you drive annually. Even though you can increase the mileage limit it will increase your monthly payment as well. If you exceed your limit you could pay up to $0.25 per additional mile, that can add up quickly.
What Do I Need to Know Before Leasing a New Vehicle?Before leasing a car the following is important:
- Determine the final cost of the lease. This includes all fees, taxes, and interest. You can multiply the monthly payment by the length of the lease to get a rough estimate.
- Learn the money factor and interest rate before you lease. If the dealer is not upfront with these numbers request them. If they are unwilling to provide, look to lease elsewhere. Using the money factor you can calculate the annual interest rate simply by multiplying by 2400.
- Check that the manufacture warranty covers the vehicle for the entire length of the lease as well as all maintenance and repairs.
- Make sure that the lease offer includes Gap Insurance, this will cover you if the vehicle is stolen or totaled during the lease. Some leases waive gap liability, these are good lease deals as well.
How Can I Discover Good Car Lease Deals?
It only takes a few minutes to discover all the good car lease deals for every make and model of car. Simply request a free no obligations new car price quote and discover all the latest lease deals that will enable you to further save money on a new car lease.