Many financial experts would tell you that leasing is a better choice than buying when it comes to choosing an automobile. Financial advisors suggest you buy assets that appreciate in value and lease those that depreciate. Most everyone knows that automobiles depreciate the moment they are driven off the lot; therefore, one would think that leasing an automobile would be the better financial choice.
Your driving style and history should also help determine whether it's best for you to lease or buy. If you are the type of individual that prefers a new auto every two to three years, wants to drive an auto while always under warranty, a person that doesn't drive a great deal or isn't rough on their auto, then financing an auto lease is the better choice for you.
If the above advantages of leasing an automobile appeal to you but you are still not sure if leasing is the best decision financially for you, compare the two options. Use our online loan/lease calculators that quickly compare monthly payments, the total car price, interest and more, side-by-side for your review.
Many shoppers think that you should negotiate the lowest lease payment. In reality, it is more important to negotiate the automobile purchase price, which will lower your capitalized cost resulting in a lower payment. The capitalized cost and lease financing rates are negotiable while the residual value is not.
When you're ready to apply for financing for an auto lease, it is wise to know the terms and definitions to successfully negotiate a fair deal. Some of the terms to know when researching auto lease financing include:
Besides understanding the language of auto leasing, it is important to be aware of the various fees involved with a contract such as Excess Mileage Fees, Acquisition or Lease Inception Fees, Disposition Fees, and Early Termination Fees.
The more you know about auto leases and financing, the more you'll save in the end. Your homework before signing an auto lease will save you money especially if you choose to purchase the car at the end of your lease.
myAutoloan.com can help you determine if you are getting a fair price on your auto lease or refinance the buyout amount when your auto lease ends.