What is better: Leasing or Buying?
There is no set answer to this question. There are several factors that need to be considered when making the decision between leasing a vehicle and purchasing. Some important factors are the vehicles that you are choosing between, driving personality, and financial objectives. Another important aspect to look into is your current trade cycle. How often are you currently switching out of the vehicle that you are currently in? If you are getting out of your current vehicle every 2, 3, or 4 years, then leasing could be a very good option to consider.
Why are the mileage and term limits put into place?
The mileage per year (10,500; 12,000; 15,000; and 19,500 miles) and term of contract in months (24, 36, 39, and 48 months) are used to set the residual value of the vehicle. This value is used to determine what the value of the vehicle is going to be at the end of the lease. This is important because the residual value is used directly to determine payment. This being the case, vehicles that have more equipment generally have a higher residual value, and therefore offer competitive prices with vehicles that do not have as much equipment.
Can I use my current vehicle as a trade-in on a new lease?
You are able to use your current vehicle as a trade-in. One thing to take into consideration is if you have a current pay-off on your vehicle. This can affect the monthly payment on the lease.
What is the difference between down payment and amount due at signing?
The down payment is only the amount that reduces the amount financed, which reduces the amount financed. In some cases no down payment is required, but customers often elect to put some money down to reduce the monthly payment. The amount due at signing includes the down payment, taxes, official fees, deposits, and first month’s payment. All leases will have an “Amount Due at Signing.”
What are my end-of-lease options?
The primary end of lease options include returning, purchasing, and trading in the vehicle that you are currently making lease payments on. There are a number of factors that can result in which option being best for you, and those can be discussed with a sales representative as your lease is coming to an end.