What is leasing?
Leasing is nothing more than a method of paying for the use of a vehicle over a specified period of time. Leasing contracts typically start at 24 months and can last up to 72 months.
Why is leasing popular?
Leasing has become very popular for a number of reasons. First, it enables the driver to drive a newer car more often. Second, it may allow a buyer to afford more vehicle for less money.
Why lease?
There are two main factors that have caused the shift to leasing. First, the cost of new vehicles has rapidly spiraled upwards over the past decade. Second, with buyers demanding to drive newer vehicles more often, buyers are finding leasing a strong alternative to buying outright or financing.
What does it mean to lease?
Signing a lease contract means that you agree to make regular monthly payments, maintain proper insurance, pay for vehicle taxes and licensing fees, and take good care of the vehicle. This is usually with little or no money down!
What happens at the end of a lease?
At the end of the lease you're expected to return your vehicle to the leasing company. You may also have an option to purchase your vehicle at lease-end for a specified price (the residual value).
What are the benefits of leasing?
There are a number of key benefits to leasing that make it a worthwhile proposition for many vehicle buyers. First off, since leasing is for a shorter time period and calculated on the portion of the vehicle's value that is utilized during the lease term, the monthly payments are much lower than if the vehicle were financed. Secondly, with a lower monthly payments, lease buyers can afford to drive more vehicle than they would otherwise. These two key elements are why people that look into leasing find it to be an attractive option.
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