Instead of buying a new or used car, another option is to lease a new car for monthly payments. A lease is a contract in which a new car is loaned to you for a specified time period, ranging from six months to five years. If you want to have a new car every few years, then leasing might be the way to go; however, it may cost more than purchasing a car in the long run. Vehicles can be leased from a dealership. After successfully negotiating a deal, signing a contract and making a down payment, you will commit to a monthly payment that will cover the cost of the car’s depreciation.
Your monthly lease payment is determined by five important numbers:
Leasing can sound like a fun way to experience a variety of cars, but be aware that leasing contracts come with many conditions. Some examples:
You’ll want to read your lease contract thoroughly to avoid any surprises later.