The auto industry is booming. Vehicle prices are climbing to all time highs. Many consumers want a new car, truck, or SUV, but are looking for an affordable monthly payment. When consumers purchase vehicles, the only way to get a lower payment is to put more money down, and extend the term of the financing, which can lead out to 6 years of payments and interest. With this in mind, many consumers are turning to leasing a vehicle to keep the monthly payment low.
Sometimes leasing can make a difference of a $100 per month on your payment, not to mention, a lower term, which means a newer car, truck, or SUV every three years, and who doesn’t love to get new cars? Typical leases are 3 years and 36,000 miles, but there is a little negotiation that can be done if you suspect you can’t keep it under the 36,000 miles.
The average transaction price of a vehicle has reached $31,000 at the dealership, so it makes sense that consumers are looking for ways to cut their monthly payments. Leasing is a great way to control the inflation. It also limits the repairs you may have to do since, most if not all repairs will be covered within the warranty period on the vehicle. This is good news for consumers, and for those who trade their vehicles in frequently, it is a great option.
There are some limitations when you lease your car, truck, or SUV. For instance, there are limited modifications that can be made to the vehicle aftermarket, and most of them have to be performed at the dealership so that you do not break the terms of your lease. The obvious limitation is mileage. If you go over your mileage, you most likely will have to pay per mile you go over your lease. The vehicle also has to be kept in pristine condition to avoid wear and tear charges.
The good news for auto leases is that there is often little to no down payment required, which makes it more affordable and most of the time, you can afford a higher end model with better equipment. Most leases offer the option to purchase your vehicle if you decide you want to keep it, so if you fall in love with your car, you can keep it.
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