Know the facts before you go into the dealership to lease your new van so that you can become an educated buyer who knows how to find the lowest prices.
What Exactly is Leasing?
Leasing a vehicle is an alternate way of experiencing ownership, without committing to owning that car for the next couple years. Leasing presents the opportunity to pay lower monthly payments and gives you the flexibility of having the option to return the new van at the end of the lease term.
The most common lease terms last 24-36 months, however, some dealerships offer longer terms of 48 or even 60 months. After the duration of your lease term expires, you simply return the van to the dealership where you are given the option of buying it or moving on to a new vehicle.
Determining How Much Your Lease Will Be.
Understanding how much your new van lease will cost you is all about knowing 2 terms: depreciation and residual value.
Depreciation: regardless of whether you are buying or leasing, every new van lessens in value over time. From the second you drive that new van of the dealership lot it begins to decrease in resale value.
With leasing you need to focus on how much the value of the new van will depreciate over the course of your lease duration.
Residual Value: the residual value of a vehicle is the amount it is worth once you return it to the dealership and it has suffered depreciation.
Let’s take a look at an example that shows how these two things work together to determine how much you will have to pay for your new van lease.
Say you are in the market for a new Honda Odyssey. The Odyssey starts at around $28,000 so this is your initial start price. You plan to lease the Odyssey for 36 months and over the course that time the Odyssey will lose it’s value by $8,000. This means that the residual value of the van will be $20,000. Your monthly lease payments will reflect $8,000, interest, and normal fees spread out over the course of those 36 months.
Knowing the prices being offered on leases at your local dealerships is essential to knowing which new vans you can afford to lease. Request a free, no obligation price quote to receive pricing information on new van leases from multiple dealerships in your area.
Your free price quote will give you the tools you need to fully prepare for your new van lease. Find the top van leasing deals in your area now!
