You've done your research, found the vehicle of your dreams and the hard work is over! Now it's time to sit down with your Sales Consultant and take your dream vehicle home. There is one question left to answer - how do I want to pay for my vehicle?
Do you want to finance your new vehicle for the next 6, 7 or even 8 years? You've heard of leasing but you're not quite sure how it works.Let's dive in so you can make an educated purchase decision!
I don't want to lease - it's basically renting.
This statement is only half true. Yes, you get to hand the keys back at the end of the lease BUT you also get the option to re-finance the vehicle at the end of the term, this is beneficial especially if you really love the vehicle!
I drive a lot!
So leasing may be the option for you! You can pre-pay for the extra mileage at the time you sign the paperwork at a lesser rate than an overage charge. And remember, you're only stacking on that mileage for the duration of the lease. Imagine what that odometer will look like at the end of your finance contract! That could be a LOT of depreciation.
I keep my vehicles for a long time.
That's great! There is nothing wrong with loving your vehicle! Remember, at the end of a lease you can buy out (or finance) the residual value of the vehicle and continue to own it. What happens if in 3 or 4 years down the road there is a new version your vehicle available? You'll have an opportunity to upgrade without negative equity!
I don't want to put any money down.
No problem! You only need to make your first payment up front*! Want an even lower payment? Throw in a little money down. You don't need thousands in hand to drive away with a new lease.
*a bank may ask for down payment as a condition of approval in certain cases.
What if I want accessories?
There are certain OEM accessories that are approved to be part of a lease and even increase the value of your new vehicle! You only pay for part of the accessory value during the lease term, and the residual value of your vehicle increases!
What happens if I scratch or damage my vehicle?
FCA understands that their vehicle owners don't park their vehicles in a showroom at the end of the day with a detail department on call. There is a certain amount of wear and tear that is perfectly acceptable to obtain during the time of ownership. Don't fret that scratch or coffee spill! You can even get protection from massive depreciation due to an accident or collision*!
*Ask about optional GAP protection at time of purchase for extra coverage.
With Leasing you also get protection from swings in the market!
Lets say that the residual on your lease is $15,000 when you drive away with your newly leased vehicle. Maybe 2 years down the road the market takes dip and then at the end of your lease term and now your vehicle is only worth $10,000 on the used market. Good thing you leased because that $15,000 is guaranteed!
On the flip side, what if the market took an upswing and now your vehicle is worth $17,000 on the used market? You can buy out your lease at the end of the term now you have a $17,000 vehicle that you paid $15,000 for. Score!
So it sounds like a lease may be the right option for you! You can stay current to the newest body style, latest technology and adapt to changing lifestyles! Maybe your commute or job changes, maybe you add another member for two to the family, or maybe that Green color just isn't you anymore.
Talk to our Sales Professionals today about the benefits of a lease and make a smart and informed decision on your next purchase!