A smart plan, auto financing can help shoppers lease new vehicles
Posted on Monday, March 17, 2014 at 1:50:05 PM
In today's vehicle market, buyers are facing many different positive conditions, a better climate and a more conducive environment to pursue affordable auto financing. According to Cars.com, the conditions are perfect to lease instead of buy. Interest rates are extremely low, and residual values continue to hover above normal.
However, this doesn't mean leasing is the right choice for everyone. This option provides its own set of complications, and auto shoppers should be aware of the pros and cons associated with leasing vehicles instead of buying them. Recently, Christine Dikdan, of Home Loan Investment Bank, offered some advice on this particular topic. She noted that leasing isn't for the type of person who wants a vehicle over a long period of time. Instead, it is more reasonable for those who desire a new car every several years.
"You can upgrade your vehicle when the lease is done, and the dealers do everything within their control to make it seamless," continued Dikdan. "Payment includes all maintenance and usually also includes a bumper to bumper warranty for the term of the lease. Leasing is also good if the customer is looking for a fixed total monthly cost because the payment you agree to is the payment you will be paying, plus insurance and gasoline resulting in a consistent monthly expense."
Most importantly, however, is the planning that you should take before looking for auto financing and a new vehicle to lease.
"To decide which option is best for you, I will always return to the "make a list," and move forward accordingly," she explained. "The pros and cons should be crystal after a complete review."
The financial investment for any vehicle isn't small, according to Dikdan. The money management steps behind buying a car, especially related to auto financing, are in place whether you want to lease or buy. Therefore, you should prepare.
"A smart way to plan is have a budget and stick to it as much as possible," she suggested. "Things happen, but returning to the core of the plan will help keep you on track with your finances. I would recommend leasing a vehicle rather than an outright purchase or conventional financing if for some reason the vehicle has really bad reviews or ratings, but then I would question why that vehicle was chosen in the first place."
Above all else, Dikdan encouraged buyers interested in a new car to go with reliability, no matter if the vehicle has been leased or purchased.