The Sales Manager from this RAM truck dealer in Waldorf, MD recently sat down with us. This is because people are often confused about the finances of leasing a car. There really is a lot to it, and it is different from paying a bulk amount for your new or used car that you plan to have for years. Leasing gives you a chance to try out different cars without commitment, and it’s worth trying out at least once during your driving days. Below we have explained how the financing works. We have gone in depth into the topics of down payments, other payments leases involve, and other general information about leases. Continue reading to learn all about how paying for a lease works! Enjoy!
There is a down payment involved with a lease. If you make a large down payment, then your monthly payments will be smaller. Be prepared to pay a fee as a penalty if you choose to turn in the car early, before your lease term concludes. However, this fee can be waived if you are trading in the car for another leased car or if you are purchasing a car. You may also have costs that include an acquisition fee, a refundable security deposit and the first month’s payment. Payments have low interest rates. A dealership like the one mentioned above in Waldorf, MD can give you more specific details on how the process may work there!
Lease payments are generally low, as you’re paying only for the vehicle’s depreciation during the lease term. Depreciation ties into the car’s residual value, which is a percentage that is an important part of your leasing deal. If you have a high residual percentage, then you can count on having low monthly payments. You will also be paying for taxes, and for ‘rent’ charges. When your lease term ends, you may have some end-of-lease costs. Any of the car’s future value will have no financial impact on you. If you exceed normal wear and tear of the vehicle, then you will be responsible for any charges.
Other reasons to lease
If you are interested in driving new vehicles, then leasing is an easy way to do it. You may get yourself a new car every few years, if being in the latest and most technologically-advanced car is important to you. Depending on the lease, you may only be allowed to drive the car a certain number of miles per year. This can be a good thing, because you are in turn saving on gas money. Keep in mind that if you exceed your mileage limit, you may need to pay a penalty.
We hope that you have enjoyed learning about the finances of leasing vehicles. There is really a lot to know before you make the decision. Do not hesitate to contact the above-mentioned dealership with specific questions about a vehicle you may like to lease!