If you are in the market for a new vehicle, you may want to consider leasing your next vehicle. Leasing a vehicle can be a smart choice in a variety of different situations.
#1 Looking for a Lower Monthly Payment
Leasing can be a good choice if you are looking for a lower monthly payment. If you lease a brand new vehicle for five years, you are going to pay a lower monthly lease payment then if you were paying a five-year loan for the same vehicle. The lease payments for five years would be smaller than a five-year loan payment because, with a loan, you would be paying off the entire value of the car during that period. With a lease, you are just paying off the depreciation of the vehicle during that time period.
This can allow you to save money each month. You are essentially paying to rent a nice car instead of buying it. You can save the extra money you would have spent on a full loan payment over the lease of your loan and use that money for your next lease or to buy a car with in the future.
#2 Don't Have a Lot of Cash Right Now
A lease can also be a smart choice if you don't have a lot of cash on hand right now. With a lease, you will only have to put down a small down payment. You may even be able to get the down payment requirement waved altogether. You will have to pay sales tax on the lease and pay some fees to start the lease.
If you put down a small down payment, you are going to have slightly larger monthly payments for the lease. If you put down a large down payment, you will have smaller monthly payments. A lease is great if you don't have 20% to put down on a brand-new vehicle that is going to cost you $30,000 to $40,000. A down payment on a new vehicle could cost you between $6,000 to $8,000; the money on a lease will be a lot less.
#3 You Are a Low-Mileage Driver
Finally, a lease is a great choice if you are a low-mileage driver. If you drive 1,000 miles or less each month, a lease can be a great choice for you. If you are a high-mileage driver, a lease may not be the best choice for you. Most lease agreements provide you with a set amount of miles per year. If you exceed those miles each year, you will be charged for each extra mile that you drive.
If you want a new vehicle without a big payment, you don't have the cash for a down payment on a new vehicle, and you are a low-mileage driver, a lease may be the perfect way to get into a brand-new vehicle. For more information on how to lease a Lexus, contact your local Lexus dealership.