|
| Car Lease | ||
The term, car lease, refers to a form of automobile financing that produces lower monthly payments than a similar loan. Leasing has lower payments because the amount being financed is less. Only depreciated value is financed, not the entire value of a vehicle. All vehicles depreciate, regardless of financing method. Some vehicles depreciate more than others. When considering a car lease, choose a vehicle make and model with the lowest predicted depreciation (see residual value). The best car lease deal is when price is discounted, and a rebate is available, and interest rate is low, and lease-end residual value is high. In combination, these factors make a good lease deal. A car lease requires that the lessee take good care of his vehicle, maintain insurance, and stay within a specified mileage limit. Leasing may not be good for those who drive more than 15,000 miles per year, don't maintain their vehicles, and don't expect to complete the full term of the lease. A car lease is best for those who like having a new car every two or three years, keep their cars in good condition, drive only average miles per year, have a stable lifestyle, and don't mind not having any ownership equity in their vehicles. About 25% of all consumer vehicles are leased. Car leasing works very well for many people, and not so well for others. Before deciding to lease a car, it's best to learn how leasing works and how to decide if it's the best financing option. For more information, see: The Lease Guide
Comments and questions should be directed
to
. |
Return to