It's surprising how many people don't consider leasing when
they're in the market for a new vehicle. Leasing is a smart alternative to
financing because it can allow you to drive a nicer, newer car for less money.
However, longstanding misconceptions about leasing lead customers to believe
they are making monthly payments and will have nothing to show for it at the
end of their lease. Allow us to dispel some common myths about leasing before
you completely rule it out as a valid option.
1.)
If I finance my car, I can eventually own it. That's not possible if I lease.
Many people won't contemplate leasing a vehicle simply because they don't want
to make payments on something they won't eventually own. In reality, most car
buyers will never own the vehicles they finance. Only 19% of people who obtain
60-month financing will keep their vehicle long enough to make that final
payment. So if you trade before you pay
off the loan, you have actually leased the vehicle without enjoying any of the
benefits of leasing or of actually owning your vehicle.
2.)
Leasing comes with a lot of fees and penalties.
Leasing also gets a bad rap because car shoppers have heard that steep
penalties follow the term of the lease. This is yet another leasing myth. There
are typically no disposition fees, early termination fees, turn-in fees or
purchase fees with most leasing companies. Even if you happen to damage the
vehicle during the term of your lease, simply turn it into your insurance
company as a claim just like you would a vehicle you financed or owned.
It is true that you will be responsible for all vehicle repairs during your
lease. However, a lease usually ends around the same time as the manufacturer's
warranty. This makes it highly unlikely that you'll have to pay any out-of-pocket
costs for repairs to the vehicle.
3.)
When my lease is over, I have nothing to show for it.
So what happens after your lease is up? Well, that's your call! Most people believe
that they have nothing to show at the end of the lease when in reality, they've gotten the best years out of a quickly depreciating asset. Even so, there are
still many options to consider. If you like the car, you can buy it by paying
off the remaining balance or "residual value." You could also elect to lease an
entirely different car or simply walk away.
Once you know all the facts, leasing seems almost too good to be true. So, why don't more people choose to lease rather than buy their vehicles? Actually, more and more people are starting to consider leasing as the right decision for them! At the Glockner Family of Dealerships alone, many of our employees, including Tim Glockner, lease their vehicles. Pay us a visit or contact us to learn more!
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