Automotive Lease Prices Explained

Buying a car is a big responsibility and at times it is not the best solution for a person’s needs.  If you are in the market for a new car, but don’t know what your long term needs are going to be or if you just prefer to update your model every few years, leasing a car may be a better choice for you.

1160608 breaklight Automotive Lease Prices ExplainedLeasing a car basically means paying for the use of the car while you are using it.  When the lease is up, you have the choice of renegotiating and renewing the lease or turning the car in and doing something different for your next auto.  Shop around for the best lease price that you can get because leasing companies have much more leeway when adjusting the price than when you are buying the car.

Lease prices are based on the amount of depreciation that the car will accumulate while you are driving it.  So, when a car is first leased, they determine the car lease price by taking the MSRP and negotiating.  It is important to negotiate down from the MSRP as much as possible and then determining the depreciation percentage on the car.  The monthly payment will be made up of the depreciation value and the interest on the lease price plus taxes.  A refundable deposit is also usually required.

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