Frequently Asked Questions
Which is better, leasing or buying?
It depends on the type of driver you are and is based on a number of factors. Weigh your options and select the plan that is best for your driving personality.
Why is leasing sometimes less expensive than purchasing a vehicle?
The monthly payments on a leased vehicle are calculated by disclosed factors such as interest rates, down payment, and trade value if applicable. The loan for a purchased car is negotiated based on the selling price and once this is determined the customer decides how much money they wish to put down to arrive at the desired monthly payment.
What are some variables to consider if you wish to lease a car?
The type of vehicle and how much residual value will be left over, your individual driving habits and any factory sponsored leasing rate reductions. All of these can be important to allow you to decide the type of agreement that would best suit your needs.
What are the components of the leasing payment?
These include the monthly depreciation, monthly lease charges and sales tax based on the state where you lease. Pay close attention to the residual value as this is mark that the payments are calculated by as you will not make payments beyond this dollar amount. Once the lease is calculated by month, the lessee will not pay beyond the ending date of their agreed upon term which will end at the predetermined residual value. This is different for buyers that will continue to make payments on the loan until it reaches a zero balance.
What occurs at the end of a lease?
You have the option to purchase the vehicle you lease or return it to the dealership. There may be some fees incurred based on the leasing agreement contract for excessive wear and tear and mileage but these can be expected since the contract you sign will outline all the rules and regulations surrounding the lease.