v Is leasing for you?
- Before you decide do a side by side comparison Lease vs. Buy. Many financial experts advise to buy assets that appreciate in value, and lease those that depreciate in value, because automobiles depreciate in value, leasing makes the most financial sense.
v Mileage Considerations
- Some people think they shouldn't lease because they drive too many miles. That's just not true. Figure out how many miles you drive per year and build the miles into a lease. Low mileage drivers will pay less per month compared to a higher mileage driver. Most leases only charge $0.10 per mile over 15,000 miles per year.
Example: 10,000 extra miles X $0.10 =
$1000. Your payment goes up
approximately $30 per month X 36months.
Compare your situation side by side:
Many Lease companies have plans to cover most driving habits, low mileage starting at 10,000 miles per year up to higher mileage driver at 25,000 miles per year.
v Lease-End Options
- Most people choose to walk away at the end of a lease because most guaranteed values are greater than the wholesale value of the vehicle. You could choose to purchase and keep the vehicle or sell it for a profit.
v Excessive Wear and Tear
- Every lease contract has specific wear and tear guidelines attached to it. Here is an example of a GMAC Excess Wear Table, Most guidelines are similar. You should read lease contracts before signing.
v Leasing is Good!
- For most people, leasing is a problem free, money saving, and enjoyable experience that returns them to lease again with their next vehicle. People who have problems with leasing are generally those who don't understand how leases work. Do your homework first and you won't have any surprises.