New Car Leasing
Leasing a new car is an attractive alternative to a conventional new car purchase. If you like a particular car, but you're wary about owning it, why not lease it first with an option to buy? Request new car lease quotes today and compare them to find the best deal.
There are several benefits to new car leasing — but there are also some negatives. Let's look at the benefits first!
- Your monthly payments will be lower. Because you're only paying for the portion of the vehicle that you actually use, your monthly lease payments will be 30%-60% lower than for a purchase loan of the same term.
- You can afford a nicer car. Because your monthly payments are lower, you'll be able to afford a nicer new car.
- You will pay for fewer repairs. Leasing a new car means the car will, on average, be more trouble-free than a used car, and the car will likely be under the manufacturer's warrantee.
- You'll spend less cash. Most leases require little or no down payment — though you can make one in order to lower your monthly payments.
- You'll pay fewer taxes. In most U.S. states and in Canada you don't pay sales tax on the entire value of a vehicle when you lease. You only pay tax of the portion of the value that you use during your lease.
- You won't have to sell the car. You simply turn it back in to the leasing company at lease end and walk away. However, you can also choose to buy it or trade it at the end of the lease.
 Even with all of those benefits, new car leasing requires more discipline and commitment than new car buying. Look through the list below. If you answer "yes" to any of these questions, leasing may not be right for you.
- Do you think there is a chance you'll want to end your lease early? You may have to pay fees and/or prepayment penalties. There are, however, new legal alternatives such as lease swapping that make getting out of a lease easier.
- Do you typically drive your cars more than 15,000 miles a year? You can be charged for excess mileage if you drive more miles than the number specified in the lease.
- Do you mistreat your cars or fail to keep them in good condition? Anything more than normal wear and tear and you'll pay for damages.
- Do you think you'll want to customize your car, make modifications, or repaint it? If you make any modifications to the car you'll likely have to pay to have them undone at the end of the lease.
- Do you like paying off your loans and driving your cars until the wheels fall off? Leasing new autos means low monthly payments and new cars to drive — but it means you never own your car and you always have monthly payments.
- Do you have a flawed credit rating? Leasing is slightly higher risk for lenders, so be prepared to have your credit reviewed. Expect to pay a higher rate if you have a history of credit problems.
Ready to lease a car? Request free, no obligation new car lease quotes today, and compare them at your leisure to find the best deal.
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