After buying a house, a new car is the second biggest
purchase that most of us make during our lifetimes. Since the majority of
shoppers do not have enough cash on hand for this kind of transaction, most
buyers look towards financing options for their new vehicle. The decision to
either lease or finance to buy in this situation can be extremely confusing,
especially for first-time buyers. You must take several different factors and
aspects of your own lifestyle into account, while weighing the option to either
buy or lease. This article can show you some of the reasons why a sign and
drive lease deal may be right for you.
About Price – Why Leasing
is Such a Deal
The age old adage about leasing is that you get "more
car for less money," with a lease. This is due to the fact that the car's
monthly payments are normally smaller with a lease because you aren't actually
paying for the sales price of the vehicle, but rather what the depreciation of
the car's value will be. The car's "predicted future value" is the
amount that the vehicle is expected to be worth at the end of the term of
lease, also called "residual value."
The residual value is then subtracted from the overall
purchase price of the vehicle, and the remainder is the amount on which
payments are based. So if a car's residual value is 55 percent after three
years of use, that means a $30,000 car would be worth $16,500 at the end of the
lease. You'd make lease payments on the remaining $13,500, rather than the full
$30,000; there are, however, interest fees and taxes included within the term
of a lease.
The Other Advantages
of Leasing
When it comes to putting down money for a lease, the amount
due up front can range from zero to several thousand dollars. Thus, if you do
not have a lot of money saved up for a down payment, looking into a special
lease deal may give you a much wider variety of vehicles to choose from.
Leases are also great for people who get bored with their
cars easily, as many only last about three years; once the lease is over, many
auto dealers offer trade back deals for new models or different upgrades. Since
you'd be leasing every few years, you could also guarantee yourself up-to-date
technology and safety features in your car.
Additionally, since many new-car bumper-to-bumper warranties
last for three years, the car is typically covered for the entire duration of
the lease term. If you enjoy having the newest high-tech features, leasing
could be better for you. And if you have grown fond of your car by the end of
your lease, you can usually still purchase the vehicle at that point in time.
Therefore, if you like to keep your options open, and only want to
put up a small amount of money up front, a lease may be perfect for you. Make
sure to visit Gentilini Motors for
the
best sign and drive lease deals in NJ.
Labels: Sign and Drive Lease Deals NJ