Many people ask the question how to lease a brand-new car? There are many benefits of leasing. Leasing is another way to finance your car, in other words you can do traditional monthly payments. The most common term for monthly payments that people use right now with is 72 months of financing. Leasing the most common term is 36 months, although there are two-year leases and 4-year leases and even 39-month leases. You could also pay cash for your car. The two most common benefits of leasing are it gives customers a lower monthly payment in traditional financing and it gives you choices and flexibility at the end of that lease.
One thing to keep in mind is your monthly payment. About 90% of customers have some sort of a monthly budget in mind when they come to the dealership. One term to make sure you know is the residual value. This is the guaranteed value that your car is going to be worth at the end of your lease. The residual value is always preset, and you will know the residual value when you lease a car. Another term you might want to know is called money factor. Just like a monthly payment for financing uses interest rate the money factor will help determine your leasing rate. It just looks a little bit different as opposed to listing 4.89% the money factor will say 00204. In order to convert that, you multiply it by 2400 and it will give you a rate of 4.89%. This would be what your leasing interest rate is.
Knowing the typical timeline of a lease will help you understand your leasing options. The typical timeline for a lease is 36 months. Usually when you get to about 6 payments or 6 months left in your lease, you would normally be hearing from the dealership where you got your lease like a luxury car dealership queens ny. They will consult with you and give you options for the end of lease terms. Then you can pick the one with hopefully with their help that’s best for you and your family.
One choice is you can decide that you love your car so much you will want to keep it for the next 10 years. In which case you were going to finance that car based on the residual value. For example, let’s say you still owe 13,000 on your car, that is the residual guaranteed value of your car. You would Finance this amount on that amount. Another option is to trade it in for something else. Many consumers who lease typically do this option for the fact they can upgrade to the latest safety features and technology. Your car will either be break even, it will have some positive equity, or you will have negative equity. Most often you are going to be break even or you might carry a little extra money into your next lease. These are just some of the benefits of leasing a car.