Who leases a car and why?
Leasing allows you freedom to have a new vehicle every 2 or 3 years, while protecting you against negative equity. In the event your vehicle loses value, the lease guarantees a residual amount of worth at the end of term. (FYI – If the vehicle is worth more than the residual, the customer reserves the right to purchase the vehicle for the residual amount.) Also, there are certain tax advantages for leasing (business owners, etc.). And leasers receive full new car vehicle warranty and that generally allows them to drive a more expensive vehicle at a lower payment.
The most important thing to consider when you’re thinking about leasing is how much you drive. There are certainly mileage parameters with leasing. And a penalty (approximately 15 cents a mile) if miles are exceeded. Pay attention to the average number of miles you drive in a month and then you will know if leasing is a good option!
It is true that leasing is more popular for certain makes and models. Nissan is very aggressive in the leasing department, specializing on their core vehicles: Altima, Maxima, Murano and Rogue. And Hyundai and Chevy offer leasing, as well.
It’s nice to have options when looking for your vehicle. Leasing is just another segway to financing your automobile!
What other questions do you have about leasing? Do you own or lease your vehicle? Why?