Leasing has upsides and downsides

Posted by on Jan 25, 2012 in 15th Article | 0 comments Deciding between financing or leasing your new car is a head-scratcher every bit as perplexing as selecting a good natural gas contract or a smart cellphone package. For a small minority of new-car buyers today — about 12 per cent, according to industry watcher Dennis DesRosiers — cash is still king. They can pony up the full purchase price at the time of delivery and drive away with no strings attached ipod music. For everybody else, it comes down to financing or leasing. Professional auto broker Mark Derry says consumers who need a new, warrantied car should lease if they’re living on a very tight monthly budget. “Leasing payments are usually 20 to 35 per cent cheaper per month than financing the same vehicle,” he says, which can be music to the ears of a consumer living from paycheque to paycheque herunterladen. Derry uses the example of a Toyota Matrix he researched recently for a client. The monthly lease payment was $370 for four years, compared to $482 monthly in borrowing costs for five years (buying it for a total of $28,920). At first glance, it’s a no-brainer; the lease is more manageable. However, reality sets in at the end of the lease after already spending $17,760 my summer car kostenlos herunterladen. The lessee has to either return the car or agree to buy it at its residual value. Derry says opting for the buyout often means financing the residual value (what it’s worth on the market), say $10,000, over three more years at 7 or 8 per cent interest. After seven years of car payments, the lessee will finally get to own her car. If she had chosen to finance her Toyota from the beginning by agreeing to a higher monthly payment (at a favourable rate of 3.9 per cent), she would have paid less interest and owned the car free and clear after five years of equal payments garageband songs herunterladen. Leasing is enjoying renewed popularity, according to Chris Travell, vice-president of the automotive group of Maritz Research, who tracks the trends for the auto industry. Last year 44 per cent of car shoppers chose to lease, 10 per cent higher than just a few short years ago. “Leasing aids a consumer’s cash flow,” says Travell Download youtube video without program on mobile. “Smaller payments are welcome, or they can get more car for the same amount...
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