Leasing
a car is similar to financing the purchase of a new car in many ways,
but there are some key differences. You might be able to get more car
for less money by leasing. That's because a car loan is based on the
full price of the new car, while a lease is based on only a percentage
of the car's price. For example, on a $30,000 car, you'd finance the
entire $30,000 purchase price with the car loan. With a car lease, you
only pay the difference between the car's price and what's it's expected
to be worth  at the end of the lease, which is a car's residual value.
So if the car's residual value is 55 percent after three years, for
example, that means the $30,000 car would be worth $16,500 at the end of
the lease. You'd make lease payments on the remaining $13,500 and not
the full $30,000.
If
you only have a small down payment saved up, leasing may also be a
better option for you. Many car leases require anywhere from $0 to
several thousand dollars up front, thought he down payment is
negotiable. Many advertised lease offers will promote low payments, but
require a sizeable down payment. If you want to out as little down as
possible, remember that your monthly lease payments will be higher.
Many
leases last about three years, which is typically the length of many
new-car limited manufacturer warranties. That means the car is usually
covered under warranty for repairs for the duration of the lease. You
still need to maintain the car, though, which includes oil changes, tire
rotations, and recommended maintenance from the manufacturer. Failure
to properly maintain the car during the lease can result in fees when
you turn the car in at the end of the lease.
If
you enjoy having the newest high-tech features, leasing could be the
better choice for you. Since you'd be leasing every few years, each new
car will have the latest and greatest technology and safety features.
With a leased car, you don't have to worry about selling the car or
getting a good price for your trade-in. When the lease is up, you can
simply turn in the car and walk away.
Contact us today at Flagstaff Subaru, serving Bellemont, AZ, with any questions.
Contact us today at Flagstaff Subaru, serving Bellemont, AZ, with any questions.
