A Guide to Leasing
As you shop around for your next vehicle, you may be torn between financing or leasing your new car. However, at First Acura, we want to take the confusion out of car shopping. If you’re considering leasing your next vehicle from us, then dive into our leasing guide to learn more about the process and what it entails. Then get in touch with our financing department to set up a personalized payment plan that’s right for your budget.
What is a Lease?
Leasing is an affordable short-term version of financing. Leasing is often compared to a long-term car rental, but it’s much more different than renting. When leasing a vehicle, the lessee is essentially financing the vehicle through a different process than the traditional method. So, rather than signing up for long-term borrowing, you are technically financing your vehicle for a predetermined amount of time, instead of for the life of the vehicle itself.
How Does Leasing Work?
Lessees will pay an established, calculated amount of money each month until the end of the lease term. Once this period is over, the lessee will have the option to either pay the remaining balance of the vehicle’s cost to own outright, or they can choose another vehicle to lease for another term.
A lease term generally lasts three years, which is typically the same amount of time as the manufacturer’s factory warranty. Rather than paying a principle—like when you finance a vehicle—a lessee’s monthly payments go toward the use of the vehicle, along with the standard financing charge.
Additionally, in the case of leasing, lessees are obligated to uphold a set vehicle mileage during the lease term. It is recommended that mileage stays between 10,000-15,000 miles per year, but this factor can be negotiated at the dealership.
What are the Benefits of Leasing?
There are many benefits to leasing a vehicle, but perhaps the biggest draw is the prospect of driving a new vehicle every three-or-more years. As previously mentioned, when the lease term ends, the lessee has the option to begin another lease agreement for a new car. Since leasing is used on new vehicle models, the lessee is guaranteed to have a fresh vehicle with the latest features.
Another benefit to leasing is the cost of monthly payments. Lease payments are generally lower than financing payments, since lease payments cover the cost of a lessee’s designated time with the vehicle, rather than paying for the overall cost in the case of financing. Additionally, maintenance costs on a lease are often under warranty, so there are no added service charges should you need a tune-up.
Should I Lease my Vehicle?
This is often the toughest question to ask yourself as you’re car shopping, but it really depends on your needs and preferences. Should you need assistance with calculating possible monthly payments, or have any other questions about leasing, you can always contact our financing department and speak to one of our experts.
Lease Your Vehicle at First Acura
When you’re ready to lease, or looking for your next new vehicle, choose First Acura in Seekonk! Our sales department is open seven days a week to work around your schedule, and we’re more than happy to assist with any of your financial and vehicular needs.