When it comes to getting a new car, leasing tends to have a bad reputation. However, one out of every four shoppers don’t realize is that it can be a great option for their situation. So when at the Montgomerville Acura dealership, consider these five reasons why you should lease your next Acura as opposed to buying it upfront.
1. End up paying less for your new vehicle – since buyers only pay for the future depreciation of the vehicle as opposed to the actual sales price, the car’s monthly payments through a lease are typically lower. The depreciation is found by subtracting the residual value, the predicted future value of car by end of lease, by the purchase price. It is this remainder from the other two values that you then make monthly payments on. For example, on a $20,000 car loan you will end up financing the entire $20,000 whereas a car lease would allow you to only pay a percentage of that amount.
2. Drive a new vehicle every 3-4 years – if you like having the newest high-tech features, leasing is definitely the route for you. Most leases last about three years, which is just enough time to update on the latest technology and safety features Acura has to offer. Leasing a car for this short of a duration also means you receive a warranty that covers most repairs. Although you do have to keep up with traditional maintenance including oil changes, tire rotations and any other recommended maintenance from the manufacturer (all usually minimal considering the newness of the car), the total overall cost is usually lower. But don’t worry, if you do end up falling in love with your car and just can’t bear to see it go, you can usually buy it by the end of the lease in either cash or with a car loan to pay the balance.
3. Good Credit – if you’re looking to boost your credit score, leasing should definitely be considered as an option. 10% of your credit score is based upon the different types of credit you use, leasing allows for this credit variety. But remember that leasing a car is equivalent to signing a long-term contract – hard to get out of. Many require anywhere from zero to a thousand dollars up front and with a negotiable down payment. Just remember that putting as little down as possible will result in higher monthly costs.
4. No need to worry about resale value – when buying a car out right, it becomes a bit of a gamble determining the worth of the vehicle once you’re ready to sell or trade it in. In leasing, that value is predicted right away and put in writing. If a buyer is not careful than can end up paying more on the car loan than it is worth, known as an upside-down loan. It makes it more difficult for car owners because it means that they will have to come up with extra money in order to sell it. However, none of this is an issue when leasing a car.
5. Don’t have to worry about out of range down payment – many car lenders will require about 10 to 20 percent when taking out a loan for a car. If you’re not able to pay for this sizeable down payment, consider leasing your vehicle which allows for negotiable down payment rates.
For more information on leasing your new Acura, contact us at Montgomeryville Acura. Due to our Lease and Recieve program our customers can either update their lease or earn credit toward a new vehicle regardless of where it was bought.