Leasing
As the cost of vehicles continues to escalate, we here at Steve White Dodge-Jeep have found a way to give you the monthly payment you desire and still drive the new vehicle of your choice. Lease it!
Advantages to Leasing
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- Lower monthly Payments and Low Down Payment.
Payments on a lease are lower than financing because you are only paying for the depreciation, which is the difference between the price of the vehicle and the residual value.
- Upside Down
Never have to worry about being upside down..where the value of the vehicle is less than the amount you owe.
- Always have a payment
For most people, a car payment is like a house payment. You will always have one, so why not drive the new vehicle of your choice every 3 or 4 years?
- Asset Sense
You should buy items that appreciate and lease items that depreciate. For example, most people would not be too excited about paying for stock at $30,000. if they knew that it would only be worth $15,000. in 4 years.
- Low Risk
A bank or lease company is assuming the total risk of what the vehicle will be worth in the future.
- Flexibility
You do not have to give up the option of owning the vehicle, you can just postpone
it. This gives you time to make sure that it’s the right vehicle for you.
This makes good sense with advances in technology that have the potential
to make your vehicle outdated.
- High Mileage
Drivers can benefit by applying for extra miles up front, usually at a reduced price. The automotive industry deducts 23-30 cents per mile over your mileage limit when you trade in a vehicle.
- Win Win
In many cases, the residual value is comfortably high resulting in lower monthly payments. At the end of the lease, the leasing company absorbs the loss, not you.
- Warranty
The short-term lease leaves you covered under your factory warranty, allowing worry free driving with no unexpected repair bills.
- Get a nicer vehicle
High residuals allow you to drive a $5000 to $10,000 more expensive vechicle for about the same payment as financing.
- Tax Savings
In states with sales tax , you only pay tax on your monthly payment, not on the whole vehicle. And in some cases, the entire lease payment may be tax deductible. Consult you accountant for more information.
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Your options at the end of your lease.
- Return it to the bank and pay only a small disposition fee.
- Sell the vehicle and keep any amount over the residual.
- Trade it in on a new vehicle.
- Buy the vehicle for the residual amount.
Lease Terminology
- Cap cost the purchase price of the vehicle plus the acquisition fee.
- Acquisition
Fee a fee charged by the lender for doing the lease.
- Cap Cost Reductions any trade equity, cash or rebates used as a down payment to reduce the cost of the vehicle.
- Residual a predetermined estimate of the market value of a vehicle at the end of the lease term.
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