Economists around the country agree: there has never been a better time to buy or lease a new vehicle. Manufacturers are pulling out all the stops to close this year on a high note. Use this to your benefit when deciding if leasing a brand new car is right for you, the answer might just surprise you.

Leasing 101

Leasing is slightly similar to buying a new car; however there are many important differences. When you lease a vehicle you’re agreeing to pay for only the portion of the vehicle you are using. For example, if you agree to a 36 month lease, you will only be paying for the first three years of the vehicles value, referred to as capitalized cost. This is why monthly lease payments are usually much less than purchasing a vehicle.

The value that will be left in the vehicle at the end of the lease is determined in advance, often called the residual value. When your lease expires you will have the option of purchasing the vehicle at the residual value cost, or you can walk away.

Advantages of Leasing

There are many advantages to leasing a vehicle rather than buying. When you purchase a new vehicle, you will be charged taxes on the full amount of the car. In a lease, you’ll only pay taxes on the portion of the car you agree will be used. This is one reason the monthly costs are usually lower. While you won’t actually own the car, you will still need to maintain it. Most leases include a new car warranty, but since you’re driving a brand new car, you probably won’t ever need to use it.

If you think leasing may be right for you, be sure to visit our dealers, BMW of Sarasota, Honda of Ocala, Lamborghini Sarasota, Toyota of Tampa Bay, Wade Raulerson Buick GMC, or Wade Raulerson Honda to find out about the current lease specials.