BEST CAR LEASE DEALS

Leasing a car means entering into a long-term rental agreement for driving the new car. Leasing a car includes: lower monthly payments, $0 down payment, no depreciation worries, no resale hassle. Unlike a traditional car purchase, you don’t actually own the vehicle. Instead, a leasing company purchases the vehicle from the dealer on your behalf and then you make monthly payments to the leasing company for the duration of your lease. After this term ends there are options like returning the vehicle to the company or purchasing it at a residual value, which is defined in the lease contract. Leasing a new car offers many benefits to enjoy. As of September 2021 - you can get a discount when returning your old lease or trading in your used car. Read more about how does leasing a car work in our guide.

1. Depreciation When you buy a car, you buy the whole thing. When you lease a car, you’re paying for the difference between the negotiated sale price (including fees) and the predicted amount that it will be worth at the end of the lease term. This difference is named depreciation.
2. MSRP This abbreviation stands for “Manufacturer’s Suggested Retail Price” meaning the purchase price that a vehicle’s manufacturer recommends it be sold for at the point of sale. It is also called a “sticker price” as it appears on the vehicle’s window sticker.
3. Residual Value The amount that the car is expected to be worth at the end of the lease is called its residual value. Your residual value is based on your parameters. First is the number of miles per year you agree to drive, which is typically from 10,000 to 15,000. Second is the term of the lease and it is up to you to choose while normally it may be 24 or 36 months and more.
4. Money Factor While traditional vehicle financing includes an interest rate, leases include a money factor, which is not quite the same as an interest rate. The money factor can be translated into the more common annual percentage rate (APR) by multiplying the money factor by 2,400.

Leasing is a cheaper alternative to buying a car outright or via dealer finance. You can enjoy all the benefits of driving a new car, but you don’t have to worry about depreciation because you don’t own the vehicle. If you choose to buy a car, you pay for the entire value of a vehicle. Unlike buying, you only make monthly payments for a portion of a vehicle’s total value, only during the time you’re driving it. In other words, you’re paying for the vehicle’s depreciation throughout the lease term. Moreover, when financing a car, you pay out a large upfront fee or take out a finance deal, while leasing gives you the flexibility to pay fixed monthly instalments. You can also choose to include the cost of maintenance and servicing in your agreement, potentially saving you money in the future and reducing the amount of time you spend off the road.