Tag Archives: car leasing

Cheapest Car Leases – $199 or Less in 2017

best car lease dealsMany car companies offer special lease deals on selected models and styles each month. Some are very affordable at less than $200 a month.

This month, we list over 50 leases for $199 or less. The list gets larger every month as car manufacturers increasingly work to attract new customers by offering low monthly car costs.

These are usually genuinely good deals that are worth considering as long as you like the models and styles being promoted. The deals usually only last for one month, require a down payment, and have a specific mileage allowance — usually 1000 miles per month, average. Be aware that these deals may vary by region of the country.

Most lease deals are for 24 or 36 month terms. At the end of the lease you can simply return the car, or you can purchase it for the guaranteed purchase price stated in your lease contract. In some cases, you may have equity in the car (it’s worth more than the purchase price) such that it makes sense to buy it and sell it for a profit, or use it as a trade-in for another new vehicle.

Here are the cheapest car lease deals being offered at this time:

Continue reading Cheapest Car Leases – $199 or Less in 2017

Lease Deal Calculator

lease deal calculatorIf you’re looking to lease a car and find a great deal, is it really a great deal?

Actually, it’s not easy to tell by simply looking at the numbers.

Sure, the payment seems low, especially when compared to a loan payment for the same car, but is the payment higher than it should be? Has the dealer made a mistake in his math or is he cheating you? Is the dealer basing the lease on a vehicle price that is too high — higher than sticker price? Is he charging too much interest (lease money factor)? Has he set the lease-end residual value too low?

All these factors contribute to the calculation of monthly lease payment amount. If any one of them is set too high (or too low in the case of residual value), it’s not a good deal. (If you are not familiar with how car lease payments are calculated, see Lease Payment Formula, at LeaseGuide.com.)

Continue reading Lease Deal Calculator

Lease a Luxury Car

Luxury car lease dealsLuxury cars have always had the highest lease rate among all vehicle types. Currently about 70% of all new luxury cars are leased, rather than purchased.

Why is that, you might ask?

There are essentially two kinds of luxury car leasing customers: 1) those who are wealthy and can afford to pay cash or could make large monthly loan payments, and 2) those that can’t but want to drive a better car than they could otherwise afford.

Customers of the first type, those who can afford cash or loan payments, usually have multiple vehicles, like to drive new cars every 3-4 years, don’t drive an excessive number of miles, and prefer to use their cash for more productive purposes, such as for investments. Leasing provides a good solution for them.

Customers of the second type typically lease as a way of being able to drive a much better car than they could drive with a loan. Since lease payments are approximately 50% of comparable loan payments, they can drive twice as much car for the same monthly cost. However, many of these people are so enamoured with the low payments that they overlook leasing’s restrictions, or simply don’t know how leasing works. They may drive too many miles and have to pay for the extra miles at lease-end, or pay for unrepaired damages. Or they sometimes want to end their lease early, not realizing that it can be very expensive.  Leasing is simply not right for everyone.

Continue reading Lease a Luxury Car

Lease or Buy – Which is Better?

Lease vs Buy? What’s the Difference?

One of the best ways to decide between car leasing and buying with a loan is to directly compare the attributes of each, which we will show you in this article. We’ll tell you about how payments compare, about how fees are different, about advantages, and disadvantages.

Another way to help make a decision between leasing and buying is to compare the cost of each for a specific lease vs. buy situation. For this, you’ll need a special Lease vs. Buy Calculator.

Now, let’s take a look at how car leasing compares with buying with a loan. Continue reading Lease or Buy – Which is Better?

What’s Wrong With Car Leasing?

car leasingIs it smart to lease a car? Is leasing a good idea? What’s wrong with it, if anything?

The answer is that there’s nothing inherently “wrong” with leasing a car. It’s a perfectly valid and popular form of automobile financing.

It’s not renting (often confused with apartment leasing). And because it’s a bit more complicated than buying a car with a loan, it’s very often misunderstood.

We often see advice from uninformed people on automotive question-and-answer forums advising other people against leasing. The reasons they offer are things such as, “it’s a dealer scam,” “it’s stupid,” “you pay all that money and don’t own the car,” “you’ll get hit with surprise charges and fees,”  or “it costs more to lease.”

There is some truth in all of those responses but it’s not as simple as that. These are oversimplified answers that create false impressions about leasing.

Let’s take a look at the real answers.

Continue reading What’s Wrong With Car Leasing?

First Car – Lease a Car?

Should I Lease my First Car?

lease a car first carMany people who are looking for an economical way to drive a new car, perhaps their first car, will look at leasing as a possible solution.

The consideration of leasing is often based on a mistaken belief that leasing is like renting and doesn’t require good credit as does buying with a loan. It isn’t renting and it does require good credit.

But is leasing a car a good solution for first-time car buyers?

The answer is — it depends.

If the first-time buyer is a teenager, less than 18 years old, leasing is not an answer.

Since leasing is a form of financing, similar to a loan, it requires that the customer be of legal age and have a good credit history. Furthermore, even if the teen’s parent leases a car to be driven by the teen, it’s still not a good idea.

A teen may not be able to stick with the requirements of a lease — an annual mileage limit of 10,000-12,000 miles, no customization of the vehicle, and minimal wear-and-tear. Insurance may be more expensive than anticipated due to the higher coverage requirements of a lease.

Continue reading First Car – Lease a Car?

How Are Car Leasing and Renting Different?

Uninformed automotive consumers often confuse car leasing and car renting. They sometimes think the two are the same. They would be very wrong.

The confusion is somewhat understandable because of the similarity of terms to that of apartment leasing and renting. Many of us can remember our parents telling us that renting or leasing an apartment was “throwing our money away” and that we should buy a house instead. Until the recent recession, it was true that you could invest in a house and get all your money back, plus more, when you decided to sell the house later. The house “appreciated” in value and was a smart use of your money.

Cars are not houses or apartments, and don’t act the same. All cars, unlike houses, “depreciate” in value over time and miles. They never appreciate in value — except possibly if they turn out to be classics 30 years from now. You always lose money with a car, whether you buy with cash, finance, lease, or rent. Cars are never good investments (except for some old classics). The average new car will lose half its value in three years, and even more in the following years, regardless of what was paid for it.

Continue reading How Are Car Leasing and Renting Different?

Zero Down Car Lease

zero down car leaseLeasing can provide an affordable option to anyone needing car financing at minimum monthly cost. Upfront cost can also be minimized by paying no money down — $0 down payment.

Lease payments are 60% – 110% lower than loan payments for the same car. And most leases can be obtained with zero money down— $0 down.

So what’s the catch?

First, leasing is a bit more complicated than buying a car with a loan. If you don’t understand how leasing works, or how to determine if it’s right for you, you should skip it until you take the time to learn about leasing — from LeaseGuide.com.

Second, in order to get a zero down car lease, you need a good credit score. In fact, you may need a better score than you would need if you were buying with a loan. You should always know your current credit score before going car shopping.  What’s your FICO score? Find out now when you check your credit report for $1 at Experian.com!
Continue reading Zero Down Car Lease

Basics of Car Leasing

How Does Car Leasing Work?

Car leasing is extremely popular because it offers a more affordable method of auto financing. It allows you to have lower monthly payments than with traditional auto loans. About one out of every five vehicles driven by automotive consumers in the United States are leased.

But car leasing is not for everyone. Is leasing good for a teen’s first car? What are the pros and cons of leasing?

Leasing is a little more complicated than buying with a loan, so you should take the time to learn about leasing, and be sure it’s right for you before making a decision.

What is a Lease?

Both leasing and buying a car with a loan are simply two different methods of financing. Where a purchase loan is a method of financing the ownership of a vehicle, leasing is financing the use of a vehicle for a specified number of months, similar to renting but not quite the same thing. Continue reading Basics of Car Leasing

Lease vs Buy Calculator

How to use a Lease vs Buy Calculator

When you use a Lease vs Buy Calculator such as the one at LeaseGuide.com, you should understand how it works and how to get the results you want.

Car leasing is a little different than buying a car with a loan. The language is different, the process is different, and the way that payments are calculated is different. Let’s take a look at how you would use an online lease vs buy calculator to better understand the differences. Continue reading Lease vs Buy Calculator

Car Leasing – Pros and Cons

What are the advantages and disadvantages of car leasing?

Car leasing has it’s advantages and disadvantages. Here is a summary:

Pros:
– Get new car every 2-4 years, with latest features and safety equipment
– Lower monthly payments
– Usually no down payment
– Car is always under warranty
– Lower sales tax (in most states)
– Avoids used car selling/trading hassles
– Automatic GAP insurance included (most leases) Continue reading Car Leasing – Pros and Cons

Do You Need a Lease Kit?

Car Leasing KitLeasing a car is a bit more complicated than buying a car with cash or with an auto loan. Because of that, many people are leasing when they shouldn’t be, and others who should are making mistakes or paying too much.

It’s a fact that many people who lease cars make their decision based on nothing more than monthly payment. They know that lease payments are lower than loan payments — it’s true — but what seems like a low lease payment can often be a bad deal. It’s very difficult to calculate lease payments on a simple calculator, especially if you don’t know the standard lease formula. And even if you know how to calculate a payment, it doesn’t tell you if the lease deal is good or bad.

This is the reason that LeaseGuide.com (also by Al Hearn) created the Car Lease Kit a few years ago. It’s a collection of online tables, calculators, and guidelines that give car leasing customers the tools they need to make sure they get the best possible deal and avoid mistakes.

The Lease Kit helps in the following ways:

– Tells you which car makes and models make the best lease deals (have the highest lease-end residual values)

– Shows you average lease-end residual percentages for all vehicle makes and models so that you can compare the lease residual offered by your dealer

Continue reading Do You Need a Lease Kit?

Where Are the Best Car Deals?

best car dealsEveryone buying a new car wants to get a bargain and a great deal. So where can those deals be found?

Although we’ll be primarily discussing brand new cars here, we can make some comments on used cars, if that’s the direction you think you want to go.

Used Car Deals

Finding a great deal on a used car is a bit more tricky than finding a new-car deal. That’s because used cars are, well, used. No two are alike. Even used cars of the same year, same brand, same model, and same equipment can have different mileage, different problems, may have been driven and maintained differently, may have been wrecked (or not), and may have very different prices for these and other assorted reasons. When you find a used car at a bargain price, it might be for a good reason — or the buyer may simply be desperate — or it could be a common scam, especially if bought online. Therefore, it takes much more care when buying used.

Continue reading Where Are the Best Car Deals?

Is It Better to Lease or Buy a Car?

better to lease or buyAlthough we’ve discussed this topic previously (see Lease vs Buy), there is one aspect that we haven’t discussed and continue to hear questions about.

The question is essentially this: “If a car dealer is offering a special promotional lease deal, a purchase rebate, and a low interest loan on the car I want, which one is the best deal?”

The short answer to this question is that the lease deal will nearly always be better — and it’s not simply because monthly payments are less. If the lease deal is one that is being offered by the car manufacturer, the company has usually applied a price discount, a low money factor (finance rate), and a high lease-end residual value. The combination of all these things makes for an attractive low monthly payment. Customers are not able to negotiate these kinds of deals for themselves  because a dealer only controls one of those three things — price.

Continue reading Is It Better to Lease or Buy a Car?