Leasing: The Basics | Pittsburgh, PA
While financing or buying a car is still one of the most common ways to get a new vehicle, leasing has become increasingly popular in recent years. That’s because leasing offers several advantages, depending on your financial situation or driving habits. For drivers looking for lower monthly payments, a wide selection, and less financial risk, leasing may just be the right option.
What is Leasing?
Much like renting, leasing is when you sign a contract and use a vehicle while making monthly payments. Once your contract is up, you give the car back to the dealership. While buying usually saves you more over a long period (i.e., decades), leasing is great for those who simply want lower monthly payments now. Many leases last for approximately two years and they come with mileage restrictions (about 12,000 miles), though it might vary depending on your specific contract.
Advantages
When you lease a vehicle, you typically spend less monthly, which is great for those on a fixed income. Additionally, you often make a lower down payment when you lease than if you buy a vehicle, and you can often drive off the lot in something that might normally be out of your price range. Some people even prefer to lease for two years before making a commitment and buying the car outright. Or, if you’re in a particularly tight spot financially and need a car for transportation, then leasing is sometimes the best short-term solution.
Fees
Some of the extra fees you may have to pay when leasing include the acquisition fee and money due at signing. An acquisition fee is a charge made by a leasing company to arrange the paperwork and financing. The due-at-signing fee is basically a down payment—it’s how much you’ll need to pay to drive the car off the lot. You can think of this as a security deposit, though you may be able to find deals that allow you to pay zero percent due at signing.
If you’re looking at leasing your next vehicle, consider our lineup here at Shults Ford.
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