Car Leasing: Reasons to Consider It

In the current economy, it is quite difficult to fathom the affordability of new cars. Whether you lease or buy a new car, the vehicle’s value will still depreciate 50-60% in as little as three years. Yet for many struggling in the present economic circumstances, the advantages of leasing for three or more years definitely stacks up against the cost of buying a new car with a traditional bank loan. Ultimately, leasing is one of the best ways to drive more for less money. You can also take advantage of being able to change cars every few years and stay within factory warranty. On the flip side, of course, leasing can be tricky and confusing for the unwashed. You should be proactive and understand all of the components that go into a lease. You lease a car through a dealer, just as you buy a car through them. Or you can use independent leasing companies like D&M Leasing (www.dmautoleasing.com) who are unbiased to a particular brand. Regardless, your dealer or independent leasing company arranges your lease with a finance company just as when you buy a car. When you lease a vehicle, the following goals should be kept in mind the following objectives: • Secure the lowest possible capitalized cost. • Secure the highest possible residual value, particularly if you do not intend to buy the car at the end of the lease. • Get the lowest possible money factor. • Pay the absolute minimum down payment, acquisition fee and security deposit. When you set about leasing a car, it’s the dealer who manages all of the paperwork for the financing. Most people do not have the opportunity to speak to any representative of the leasing company. And even if your monthly payments are lower with a lease than with a loan, you may not be getting a best deal. You should do your own research and secure competitive quotes. Find out what terms are available from a number of different lenders and lessors. You should also make a determination as early as possible in the negotiating progress whether you are interested in buying the car at the end of the lease. Also remember that most leases do not have interest rates, Instead, they have a form of interest known as a "money factor". In general, if you multiply the money factor by 2400 you can determine the approximate interest rate. Lastly, many dealers avoid mentioning the actual selling price of the car and instead focus on the monthly payments. To get the best deal, pay attention to the sales price as well as the monthly payment. Use sites like AutoBidsOnline.com to secure the lowest possible sales price. By sticking to your guns, whether you’re leasing or buying your next car, by doing your research and staying on top of the negotiations, you put yourself in a position to save and, perhaps even more important, enable yourself to secure the best possible value for your money.

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