Lease A Car – Benefits and How It Works?
In Florida, leasing a car is preferred because for many people it is more flexible. The monthly lease-car payments are less than the monthly owned-car payment. For example, if you lease a Malibu or a Chevy then the monthly payment will be lower than what you would need to pay the bank every month if you had purchased the car.
Buy or lease a car on your terms from the most reliable company in Florida – Lease A Car Direct. You can talk to their leasing experts about the branded cars you desire to check out. All the cars are new and have a full manufacturer’s warranty. There are many such advantages associated with leasing a car.
Pros of car leasing
- Leasing a car lowers the down payments as well as the monthly premiums.
- The lease monthly premiums cover the taxes and depreciation for the specific lease duration.
- You get a warranty that covers the repair costs.
- You get to trade in a new car every 2 to 3 years. It means there is no need to drive the same model year after year.
- Driving a nice and new luxury car becomes affordable.
- After the lease expires, you get to purchase the car if you don’t wish to turn it in or negotiate a trade-in.
- Car manufacturers are offering extra incentives on a lease because the used cars get back faster and their new collection gets boosted.
The difference between leasing and buying a car is you own the car and can get it customized as you like. In the long run, it will seem more economical. You can enjoy driving the car beyond the limit without concerns about paying a limitation allowance. Car ownership brings pride! The pros of purchase a car are the cons of leasing a car.
How leasing a car works?
Leasing a car is the same as buying one. Buyers do some research and compare different models online. They visit the dealership to check out their preferred model. Go for a test drive to find out if it is the right one for their needs. They then need to determine the trim level, color, and several other options and discuss financing options.
The difference between leasing and buying a car is that the majority of it happens when the lease expires. On expiration, you need to determine whether to negotiate for a trade-in and choose a new model or buy and keep the car. The choice is subjective. If you prefer to drive a new car after every 2 to 3 years as you wish to drive a car that has no squeaks or rattles, then leasing a car is the way to choose. On lease term expiry, you can trade-in to lease a new model.
- Capitalized cost means the buying price of the new car and you haggle over it while leasing a car.
- The money factor is a payment factor, actually the interest rate. You need to multiply the interest rate by 2400 and get a rough estimation of the annual percentage rate.
- The residual value defines the value of the car on lease expiry. A higher residual value means low monthly payments.
Read also: Getting The Best For Your Mercedes Benz
Residual value and money factor must be compared with other leasing companies to get the best deal!