Why Lease A Vehicle? – All Star Automotive Group
Purchasing a brand new vehicle can be fun and exciting! Something about that new car smell makes us feel happy and overly joyed! But we understand that purchasing a new vehicle is not always the cheapest option and monthly payments can be high. So have you ever considered leasing instead?
Leasing a vehicle is a great option for people who want an affordable monthly payment and a reliable new vehicle. The benefits are simple! You get a new car more often, 2 to 3 years depending on your lease agreement, you are covered by the manufacturer’s warranty and there is no negative equity!
So how does leasing work exactly? You are paying money down from a vehicle’s MSRP to its residual value. The residual value is a value set by the manufacturer an is mandated by the Federal Government. This is a number that can not be changed.
When your lease is over, there are four options you have:
- Option 1: Purchase the Vehicle
- For example, your MSRP is $40,000 and the residual value is $19,000. You would purchase the vehicle for the residual value at $19,000.
- Option 2: Trading the Vehicle in
- For example, the trade in value is at $26,000 that means you have $7,000 in the equity you have accured. Then with the equity you have accured, you can put that towards your next vehicle or put the money in your pocket and walk away.
- Option 3: Selling the Vehicle
- That is an option also, but that can vary depending on the state you live in. Some dealers require you to purchase the vehicle first, then sell it outright.
- Option 4: Walk Away
- Keep in mind, when you are walking away, you are walking away from the equity you have built over the course of 2 to 3 years. At the beginning of your lease, you signed an agreement stating how much mileage you could use in your lease period. If you have gone over on your mileage, you will have to pay anywhere from $0.08-$0.15 per mile.
Purchasing or leasing a vehicle is a big decision, so you should consider these 4 questions when you are truing to make this decision.
- How many miles do you drive a year?
- How long do you want to finance your vehicle?
- How often do you want to drive a new vehicle?
- What are the 3 most important things to you when financing a vehicle?
The great thing with leasing is that there are so many options to choose from such as the amount of mileage per year, how long you want to lease and the packages you want included. Leasing has so many great benefits that it is clear to see why more people are wanting to lease over purchasing.
Contact a one of our many Sales experts today to find out more information about leasing and if it is the perfect option for you!
At All Star Automotive, we offer a wide range of automotive services to make every step of your ownership experience as easy as possible, whether you’re shopping around for a new, used or certified pre-owned vehicle, or need repairs from certified experts.
To help you find just what you’re looking for, our new inventory and used inventory search provides plenty of options. And when you’re ready, quick credit approvals and online financing help make your purchase go smoothly and efficiently. You can also schedule your service online and get the expertise of one of our factory-trained technicians. All these options are available at Baton Rouge’s favorite place to buy and service vehicles – All Star Automotive! Proudly serving Baton Rouge, Port Allen, Zachary, Baker, Denham Springs, Prairieville, Hammond and surrounding areas.