01.02.07
Car Leasing Makes a Comeback
CNN Money reports car leasing makes a comeback.
Those interested in leasing a car this year, with interest rates rising, more car shoppers are attracted to low monthly payments, but be careful.
Auto leasing is, once again, becoming popular. The number of car leases is up 21 percent compared to last year, according to data from the automotive Website Edmunds.com.
“As interest rates rise, leasing is becoming a more attractive option for consumers,” said Alex Rosten, Manager of Pricing and Market Analysis at Edmunds.com. “Leasing allows car buyers to have lower monthly payments and get better ‘bang’ for their buck.”
In a lease, the car is actually purchased by a finance company. The “owner” of the car, meaning the person who keeps and drives it, only pays for the dollar value the car is expected to lose during the period of time he has agreed to keep it.
That amount is divided into monthly payments and, in some cases, an initial down payment.
Leasing typically costs less money per month than a typical auto loan. But its important to note that if you decide to keep the car after the lease term is over, it will cost you more. Leasing, and then paying to purchase the car costs more, in total, than simply purchasing the car with an auto loan from the very start. Read the rest of this entry »