New car leasing has come back from the endangering species list to capture about 30 percent of the car market. The reason? In comparison to buying your car with an installment loan, leasing you next vehicle can offer you a lower monthly outlay for transportation, give you assurance that you’ll never pay much for repairs and likely limit your initial vehicle payment. Though many advertised leases require substantial initial payments, other leases require a small opening payment or none at all.
To get a better understanding of new car leasing, and to help you decide whether you are better off buying or leasing your next vehicle, we recently spoke with Scot Hall is Executive Vice President of Swapalease.com. Hall is an acknowledged expert on vehicle leasing, and his advice can help you navigate the uncharted waters of a car lease.
An answer to the lease-buy conundrum
Some personal finance experts still suggest you lease rather than buy, but if purchasing your next car with traditional financing means you’re going to accept for a five-, six- or seven-year loan, you could well be better off leasing. Why? If you have a lengthy loan and you decide you need a new vehicle, you could well discover that you owe more money on the loan than the car is worth. That means to trade it in on a new car, you’ll have to pay that additional amount before you buy the new vehicle. That number could be substantial, and rolling that cost into the new car loan could be a recipe for disaster.
We at Driving Today want to keep you from disaster. We want to give you the best, most accurate advice possible, so you can make great decisions about your car. And a big decision is whether you should lease or buy.
Hall makes a good case for leasing, and he offers you tips that can help you land the best lease deal possible. To hear his advice, please click below.