Many of you may believe that leasing a car will cost you more than buying, however, this is not true.
In fact over the years most of us have been brainwashed to think so, but when taking a closer look at all the benefits of auto leasing, you will find truths that could save you money. There are some main factors to consider firstly and understanding how car leasing works will help you to make the right choice.
Every day we are faced with choices which seem quite clear cut such as drinking coffee, tea or water, putting on a suit or jeans, wearing boots or sneakers, what to have for lunch and so on. Yet, these are all small in price when compare to buying a home or a vehicle and it is where most people seem to think that the choices become complicated. Buying versus leasing is most often hugely misunderstood as we are taught that buying a vehicle is better than leasing because you will one day own the vehicle and have no more payments. But is it truly the way it ends up to be?
Start by asking yourself these questions:
If your answer is yes to all, then leasing is perfect for you, if not, don’t worry, leasing may still be the option for you. Leasing is not the same as renting, in fact it is more like buying than most people may think.
Leasing is Financing
Leasing is basically financing a vehicle. The leasing company provides the finance and a vehicle is bought from a dealer for you. Your lease payment covers two fees, one is the depreciation or use and the other is the money factor or interest. Thus, you are then actually dealing with a finance company and not a dealer and you can negotiate price just as if you were applying to buy a vehicle.
Ask yourself this, if you buy a new vehicle now and pay it off say over five years, what costs will you have once it is yours? When it breaks, what will the cost be?
If you are leasing a vehicle on the other hand, you are able to drive a new vehicle every three to four years and you will usually have relatively low monthly payments.
When buying a vehicle you are paying for three parts instead of two. As stated above, leasing payments are made up of the depiction and interest, whereas with buying includes equity as well and this causes the higher monthly payments.
Let’s look at an example:
How can this be? Well it is actually quite simple. When leasing a car worth $35 000, your payments are worked out on the difference of the vehicle’s worth. The leasing company takes a look at the vehicle’s worth in three to four years and what they can then sell it for. So, if the vehicle worth drops with say $18 000 to $20 000 and they can sell it after your contract term for $15 000, your payment is worked out on the $20 000 and not the full price as with buying.
There are a couple of things to keep in mind when leasing a vehicle, so, let’s have a look at them.
Before signing a leasing agreement you must be 100% sure it is the vehicle you want as cancelling a lease could prove to be quite expensive.
Be sure to get a good quality Gap insurance above the insurance included in your contract.
It is not recommended to pay a Cap cost to reduce monthly payments as the car will never be yours, so, it is a waste of money. However, you can ask the leasing company if you could rather pay a security deposit if you want to.
When getting extra’s for comfort keep in mind that even these you are renting and paying extra for them might not be the best option.
You can adapt your vehicle of choice as your lifestyle changes, so, if you get married or have kids in three or four years, you can easily go from a sports car to a minivan.
Always read the fine print with any transaction as these are important.
There are some extra’s you could consider as an upgrade that actually improves the value and boosts the residual price. When leasing consider these if they are offered to you:
Now is the time to lease and remember to jump into a new vehicle every 30 to 40 months or so. Always test drive a vehicle before signing and read the fine print.
We offer absolutely the best lease deals in New York including 2 year leasing options for Long Island and Staten Island Acura Specials (ask us about short term car lease in your state). Prices for Brooklyn leasing might be slightly lower comparing to leasing in other areas. For some car models we are not able to show the price, it’s that low. Call or chat with us for a quick quote.
We would be happy to beat competitor’s auto lease quote from any car leasing company in NY, NJ, CT, PA. Our prices for car leasing in Brooklyn, NYC are impossible to match. Our monthly deals and specials are often not published. We do all the negotiations including price, additional packages, even higher mileage limits with a car manufacturer for you, bypassing a dealership.
Just call us or bring a quote from a competitor including all the vehicle options and preferred packages for you brand new car. There are no hidden fees, extra costs or unexpected surprises. Honest business, transparency and trust is the key. We are not in competition with anybody but our-selves. Our goal is to beat our last performance. eAutoLease.com
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National car lease approval rates are around 70%. eAutoLease is proud to be in 90% range. How? We work directly with multiple financial institutions on your side to find the lowest possible rate on a new car lease. Not ready to commit to a 2 or 3 year lease, consider taking over the remaining term on used car lease deals, someone else’s lease.