Leasing a new vehicle is quite simply: Paying for the use of the vehicle over a time period. During that time you are responsible for all maintenance, auto insurance, licensing fees and care of the vehicle just as if you purchased the vehicle. The lease will have a term (example: 36 months) during which you will make the payment to the financial institution. At the end of the term you can simply return the vehicle to Cascade Auto Group with no further obligations.
This is where the lesson gets exciting. The calculations for the payment are based on the guaranteed value at the end of the lease. It does not matter what the actual depreciation is, you are paying for the guaranteed depreciation. The reason this is such a big deal is that when you reach the end of the lease you have the option to purchase the vehicle for the guaranteed value. If the vehicle has depreciated the same or more than the expected you can turn in your car and be done with it. If the vehicle has a greater value than expected you can still purchase the vehicle and own it for less than what it is worth! It's the only way to guarantee the value of your vehicle when you are ready to trade it in!
Now that we have your attention let me explain why I'll always lease instead of purchasing a vehicle:
· Your leased vehicle will be under manufacturer warranty*?.no hassles?.no worries!
· You can be in a new vehicle every 2-3 years*.
· You will know the exact mechanical history of the vehicle at the end of the lease when you are making your decision to terminate or purchase.
· And again, it guarantees the value of your vehicle at the end of the lease!
Leasing is simply another option for vehicle purchase. If you have not considered a lease for the vehicle you are purchasing then you do not have all the information necessary to make your decision.
*Subject to the term and conditions of the lease.