When we have a question: to buy or lease a car, what do we choose?

Buying a car gives us its ownership, but at the same time, it limits us, making us stop at one option.
Leasing a car allows us to change the car as often as you want.

Benefits of car leasing

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Often we face the question: is it worth buying a car, or is it better to lease it?

In case of leasing a car, you can change it every year and you don’t need to stop on a single car.
When you buy a car, you stick to this very vehicle before selling it.

Buying VS Leasing

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Some people might have too many obligations at work or commitments with their family, and they don’t have the patience or time to go from dealership to dealership and negotiate for the best deal.

It is so much easier to go online and search for the car they want and find an installment that can fit into their budget in the comfort of their own home. There is also the option to buy or lease the vehicle and with this article, a client can look at the convenience and benefits of car leasing.

Why will it benefit a client to lease his/her dream car?

Many people might feel uncertain whether they need to buy or lease the car they want.

First of all, they have to consider certain factors, such as:

Do they want to own the car eventually after a certain period of time?

The amount of driving they do annually, for example, is it ten thousand, fifteen thousand or more every year.

Would it be nice to own a new vehicle after every three years?

This is the type of questions to consider before buying or leasing a car. Most of the time clients will choose to lease. With leasing, they can afford a car that is more expensive and most people prefer owning a new car every few years.

The following advantages of leasing a car should be looked at:

Lower payments

With the lease of a car, payments will be lower as when buying it because they only pay for the depreciation of the car during the leasing period.

Deficit/trade equity

Because the risk of depreciation that is minimized, they can avoid problems with trading in a car when buying a new one, or leasing another.

Tax benefits

It’s possible for people to receive some tax breaks if they use their car for business or are self-employed. A tax consultant can help to make the benefits clearer for those that need a better understanding of it.

Low or no cost maintenance

Most of the time the lease may expire before 50,000 miles has been done for individual drivers. Thus, it means that any repairs of the vehicle will still be under the period of factory warranty. The only expenses a client will have may fall under the usual things like rotation of tires, and oil change routines, etc.

Features and safety

With any car leasing contract, a client can drive his/her choice and model car they want. It means that they can choose out of the newest models, body style, better safety features and technologies they prefer.

Depreciation

Everyone knows that cars are not good investments because they depreciate in value when the mileage piles on and by getting older. If a client buys a car, by the time they finished paying for it, the car generally has little to no value anymore.

With leasing, all this can be changed. Depreciation of a car is most percentage wise in the first few years, and by the time the value drops the client’s lease expire and they can get another car.

Benefits of leasing

It’s a much more logical and affordable alternative to leasing a car instead of purchasing it. Yet, this decision will also depend on the client’s needs, trade cycle, credit situation and their driving lifestyle.

Some benefits to consider:

• Advantages of limited tax
• Depreciation protection
• Terms of financing will be shorter
• Required a small or no upfront payment
• Smaller payments monthly, because payment is only for a portion of the car amount and not on the entire sum
• Drive a car over a period that is shorter and cut down on the maintenance costs

With today’s technologies, it’s made so easy for people to choose the car they want right at home in comfort. They can take their time to decide what they want and from who, while at the same time discuss their financial budgets to make the right choice. Shopping online is less stressful and there is no salesman to push them into something they don’t need.

Do Not Forget

National car lease approval rates are around 70%. eAutoLease is proud to be in 90% range. How? We work directly with multiple financial institutions on your side to find the lowest possible rate on a new car lease. Not ready to commit to a 2 or 3 year lease, consider taking over the remaining term on used car lease deals, someone else’s lease.

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First of all, you need to know what car leasing is. Although car leasing has a similar aspect to renting and buying it is not either.

Buying a car
When buying a car, you pay the full value price, are liable for repairs and will own the car once you pay your final car payment.

Leasing a car
When leasing a car you have a selection and your choice will impact the price. You will be paying a set monthly amount that rarely has anything to do with the value of the car and is usually high. Car leasing payments are calculated on the depreciation value of the vehicle for the period of your contract. Thus, it is usually quite low. You will have little to non-repair cost and can drive a new car every couple of years.

Sound great, right? So, what is the down-side?
If you fully understand the terms of your car leasing agreement and are aware of what is expected from you during your leasing period, there is no down-side!

Car leasing is not financed by a car dealer but is done through a bank, finance department of a car manufacturer or a leasing company. When you apply for a car through a dealer, the dealer is actually selling the car to the leasing or financing company. You are the actually leasing the car from the leasing company or financial institute. This also gives you some leverage and allows you to negotiate on the price.

Leasing Terms

Without a clear understanding of the terms used in a car leasing contract, you may be paying more than is required. Some car dealers love the fact that people are unaware of what is needed and what gets added and uses this to load the price. So, let’s have a look at some of the basic terms used!

Acquisition Fees – Not all car leasing contracts have this fee and it is a non-negotiable on if it is included. Many times this fee can be included in the Capitalized Cost. It is a fee added to cover setting up the leasing agreement, almost like contract fees. Usually, this amount ranges from $400 to $750.

Capitalized Cost – This is the total price you will be paying and your monthly payments will be set according to this amount. Some dealers may try to set the Capitalized Cost to the MSRP, which stands for Manufacturer’s Suggested Retail Price. This is not right, do not allow them to do this. You can and should negotiate the price. The lower the purchase price, the less you will pay monthly.

Depreciation – Depreciation is the loss of value over a period of time. Your car leasing payments will be calculated on the reduction of value in cost over the term of your lease. Usually, a car loses about 40 to 50 percent of value during the first three years. This depreciation amount is what you will be paying as you are not buying the car but leasing it for a number of years. Keep this in mind when negotiating a price.

Term – This will state the number of months or payments you will be making on the car leasing agreement. Most car leasing terms run over 12, 36 and 48 months. Nonetheless, you can go to 60 months, although, your interest will most likely go up. The shorter the car leasing term, the less interest you will be paying.

Residual – This amount is what the car will be worth after your car leasing term is done. If you subtract your depreciation amount you should end up having your residual as these two combined are the total price of the car. This amount is calculated before signing the lease and most companies make use of the ALG or Automotive Leasing Guide to calculate the amount.

Lessor – This will be the company providing the care lease.

Lessee – This will be you, the person applying for the lease.

The Money Factor – This can be very confusing but is actually simple. This indicates the interest rate on your lease and is most commonly just indicated by a simple number. It is actually quite easy to understand. If your Money Factor is say 0029, you just multiply this number with 2400 and it will give you and interest rate percentage of about 7%.

Disposition Cost / Charge – Many car leasing companies add this cost. It is normally around $250 and is said to be used for cleaning and selling cost of the car once your lease term is done.

GAP Insurance – Not all companies offer this even though it is actually quite important to have. This is an insurance that covers the cost of the car you are leasing in case it gets stolen of written off in an accident or some other way. Without this cover, you will still be liable for the outstanding cost of the car in such events. If it is not included or offered, make sure you get a GAP insurance then from an insurance company.

Adjusted Capitalized Cost – This is the final figure used to define the monthly payment amount on your lease. It is worked out by deducting the cap reduction from the cap cost. Can also be stated as Net Capitalized Cost.

Capitalized Cost Reduction – This cost is not always present on a car leasing agreement. It is only used when a down payment, rebate or trade-in is done.

Security Deposit or Guarantee – This is not commonly found on a lease but can be added. It works similar to a security deposit paid on a home when renting. It ensures that there is sufficient funds for repairs if needed when your lease ends.

Early Termination – Terminating your lease early is not recommended as it will be costly and could destroy your credit status. There are many other penalties that can also be added. So, unless you know you will be able to keep up the payments and complete the term of the lease, do not lease.

Condition of Vehicle – This should be stated in your contract and applies to the condition of the car upon its return after the leasing term. This will include damages such as paintwork, carpets, tires, cup-holders and more.

It is sometimes wise to negotiate for the lease or financing and the car separately. Just as with buying a house, having your financing beforehand can give you the upper-hand. Car leasing started out as a way for companies to obtain cars for their business needs but has become a great part of our everyday lives and many people make use of it today. Understanding the terms used for car leasing should also make it easier and safer for you.

Do Not Forget

National car lease approval rates are around 70%. eAutoLease is proud to be in 90% range. How? We work directly with multiple financial institutions on your side to find the lowest possible rate on a new car lease. Not ready to commit to a 2 or 3 year lease, consider taking over the remaining term on used car lease deals, someone else’s lease.

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Many of you may believe that leasing a car will cost you more than buying, however, this is not true.
 
In fact over the years most of us have been brainwashed to think so, but when taking a closer look at all the benefits of auto leasing, you will find truths that could save you money. There are some main factors to consider firstly and understanding how car leasing works will help you to make the right choice.

Buying vs Leasing

Every day we are faced with choices which seem quite clear cut such as drinking coffee, tea or water, putting on a suit or jeans, wearing boots or sneakers, what to have for lunch and so on. Yet, these are all small in price when compare to buying a home or a vehicle and it is where most people seem to think that the choices become complicated. Buying versus leasing is most often hugely misunderstood as we are taught that buying a vehicle is better than leasing because you will one day own the vehicle and have no more payments. But is it truly the way it ends up to be?

Start by asking yourself these questions:

• Do you have a good credit record?
• Do you enjoy driving a new car every three or four years?
• Do you drive less than 15 000 miles a year?

If your answer is yes to all, then leasing is perfect for you, if not, don’t worry, leasing may still be the option for you. Leasing is not the same as renting, in fact it is more like buying than most people may think.

Leasing is Financing
Leasing is basically financing a vehicle. The leasing company provides the finance and a vehicle is bought from a dealer for you. Your lease payment covers two fees, one is the depreciation or use and the other is the money factor or interest. Thus, you are then actually dealing with a finance company and not a dealer and you can negotiate price just as if you were applying to buy a vehicle.

Ask yourself this, if you buy a new vehicle now and pay it off say over five years, what costs will you have once it is yours? When it breaks, what will the cost be?

If you are leasing a vehicle on the other hand, you are able to drive a new vehicle every three to four years and you will usually have relatively low monthly payments.
 

Cheap Leasing Payments The Truth Revealed!

When buying a vehicle you are paying for three parts instead of two. As stated above, leasing payments are made up of the depiction and interest, whereas with buying includes equity as well and this causes the higher monthly payments.

Let’s look at an example:

• Buy: If you want to buy a vehicle today that costs $35 000, you may be looking at a monthly payment of about $700. Along with this payment for the four years or so, you will also need to have money for fixing it when need be and if you one day decide to resell you will be lucky to get even half of your money back.
• Lease: Leasing that same vehicle, you may be looking at monthly payments of about $500 and the plus side is you will not have any repair costs or hassles with selling, plus, you can drive a new car every three to four years.

 
How can this be? Well it is actually quite simple. When leasing a car worth $35 000, your payments are worked out on the difference of the vehicle’s worth. The leasing company takes a look at the vehicle’s worth in three to four years and what they can then sell it for. So, if the vehicle worth drops with say $18 000 to $20 000 and they can sell it after your contract term for $15 000, your payment is worked out on the $20 000 and not the full price as with buying.
 

Car Leasing Truths That Could Save You Money!

There are a couple of things to keep in mind when leasing a vehicle, so, let’s have a look at them.

Cons:
Before signing a leasing agreement you must be 100% sure it is the vehicle you want as cancelling a lease could prove to be quite expensive.
Be sure to get a good quality Gap insurance above the insurance included in your contract.

It is not recommended to pay a Cap cost to reduce monthly payments as the car will never be yours, so, it is a waste of money. However, you can ask the leasing company if you could rather pay a security deposit if you want to.

When getting extra’s for comfort keep in mind that even these you are renting and paying extra for them might not be the best option.

Pros:
You can adapt your vehicle of choice as your lifestyle changes, so, if you get married or have kids in three or four years, you can easily go from a sports car to a minivan.

• You can drive a new vehicle every couple of years.
• You will have little to no repair costs.
• Your monthly payments are low and affordable.

Always read the fine print with any transaction as these are important.

There are some extra’s you could consider as an upgrade that actually improves the value and boosts the residual price. When leasing consider these if they are offered to you:

• Leather Seats
• Power-steering
• 4-Wheel Drive
• Navigation
• Sun or Moon Roof

Why is leasing better for both parties?

• Leasing for you implies a lower payment, no repairs and a new vehicle every couple of years.
• Leasing suits your needs and your vehicle needs can be met as your lifestyle changes.
• To the dealer or leasing company it provides them with exceptional used vehicles to re-sell.
• Leased vehicles are usually treated better than owned vehicles.

Now is the time to lease and remember to jump into a new vehicle every 30 to 40 months or so. Always test drive a vehicle before signing and read the fine print.

Do Not Forget

National car lease approval rates are around 70%. eAutoLease is proud to be in 90% range. How? We work directly with multiple financial institutions on your side to find the lowest possible rate on a new car lease. Not ready to commit to a 2 or 3 year lease, consider taking over the remaining term on used car lease deals, someone else’s lease.

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We are often asked how it is possible that we are able to offer wholesale prices to our everyday New York wholesale lease customers and not just business and those looking to buy in bulk. The simple answer is that we have put in over fifteen years to create the best business possible, and throughout that decade and a half, we’ve rubbed elbows with and made some great friends with dealerships across the country.

Another trick to our low costs is that anytime we can, we pass along the savings accrued from dealership rebates. These savings go straight to the customer so we can offer the best in pricing to go along with our excellent service.
Our dedication to New York and wholesale cars means that we’ve built the proper reputation, and our main goal is that when someone leases with us or buys from us, they’ll come back when they’re ready to purchase or lease a new vehicle as well. We’ve put some much effort into this, that we’re proud to say 75% of our lessees become repeat customers.

We can offer cars for sale or lease at low prices, with reasonable monthly payments, and a ton of options both factory and outside of factory stock. While our focus begins at the New York level, we’ve managed to extend our business nationwide and worldwide, which means we’re able to get ahold of some international brands that are hard to find, and we even offer exportation.

We also offer a Lease Swap program that can benefit both those looking for a lease or those looking to get out of their current lease and into a new car. For those looking for a new car, we can match you up with a lease that is already in motion but no longer wanted by the current lessee. The great thing about this arrangement is that it starts wherever their lease left off. So for many, the shorter amount of time means less money spent. You also save on the upfront costs because they have already been paid. For the lessee ready to let go of their lease, this is an easy way to get out of a lease without those harsh termination fees often associated with breaking your contract.

In, New York, wholesale cars may be your best bet to get on the road as soon as possible. Whether you’re looking to buy new or used vehicles, lease a new car, or pick up someone else’s lease, Wholesale Leasing is going to have some type of option for you. If we don’t already have what you want, we’ll certainly be able to find it for you in a reasonable amount of time.

For the same monthly payment that you would have for an average vehicle, you could get a lease for a much nicer one.  Of course, you can stick with a regular vehicle and lower your price even more.  Many people, however, like leasing because of the fact that it lets them get into a vehicle that they really want but didn’t realize they could afford.

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