T H E C A R M A V E N
© COPYRIGHT 2020. The Car Maven
Well, it really depends. This is where you, the buyer, need to know what your driving habits will be with this vehicle. While it may seem cheaper as you feel lost among the shouting matches, "Buy Now! Only $99/month! ". It is worth investing in a magnifying glass and reading ALL of the fine print.
Leasing is a means of "renting" the vehicle for a specific period of time, and then deciding if you want to buy the vehicle outright at the end of the lease period. If you are not interested in buying it, all you need to do is return it at the end of the lease (covering any damages that may have been incurred). Leasing can be a great value if you like to have a new car every 2 or 3 years and you don't drive a lot of miles. It is important to remember that if you drive more than the contracted annual mileage, you are responsible for what is known as a mileage surcharge. The advertised lease payments that you see are completely dependant on many factors; the residual value of the vehicle (forecasted future value), the 'money factor' (the closest thing to an interest rate on a vehicle loan), and any down payment made by you or cash incentive offered by the manufacturer). Remember, nothing in life is free, and when you see varying lease payment offers, the cost is usually hidden in the money due at signing. Don't ever feel bad about asking questions of the dealer, that's what they are there for. And they want you to leave happy and willing to tell your friends and family. Further, when you return the leased vehicle to them, they get another chance to sell or lease you your next vehicle!