Many people looking at new cars choose to lease rather than buy. Overall, car leasing has grown significantly in the last 15 years. Car leasing hit its 20 year peak in 1999 when almost 30 % of new car transactions were leases. Car leasing has been slightly less popular in recent years; significant rebate programs and lower prices have encouraged more people to buy rather than taking a car lease. A car payment calculator is typically the best tool for evaluating whether car leasing makes sense for you. See the chart below for some advantages and disadvantages to car leasing.
Advice for Car Leasing
If you decide that car leasing is the right decision for you, be sure to ask the dealer for the "money factor." This car leasing term refers to the annualized interest rate. You can multiply this car leasing money factor by 2,400 to ge a rough annual percentage rate. Use this number to compare your car leasing offer with bank rates at Available Bank Rates to Compare with Car Leasing Offers. If the interest rates are quite low, purchasing may make more sense than a car lease. Bankrate.com also provides a great car payment caluclator. Car payment calculators are very useful, because they allow you to view your monthly payments based on the loan amount and the interest rate that you enter. Car payment calculators make it much easier to compare a purchase with a car lease.
When signing a car lease, take careful note of any fees included. Possible car leasing fees include an acquisition fee, disposal fee, and possibly and early termination fee. Finally, make certain that the monthly payment is derived from the negotiated cost of the car. For more information on how to arrive at the cost of the car before moving on to the car leasing agreement.
