As the cost of vehicles continues to escalate, we here at Bluewater Chrysler have found a way to give you the monthly payment you desire and still drive the new vehicle of your choice. Lease it!
Advantages to Leasing
- Lower Monthly Payments and Low Down Payment - Payments on a lease are less expensive than financing because you are only paying for the depreciation of your new vehicle, which is the difference between the price of the vehicle and the residual value (value of the vehicle at the end of the lease).
- Never Upside Down - Never have to worry about being upside down where the value of the vehicle is less than the amount owed.
- Always have a payment - For most people, a car payment is like a house payment. You will always have one so why not be driving a new vehicle of your choice every 2-3 years?
- Low Risk - A bank or lease company is assuming the total risk of what the vehicle will be worth in the future
- Flexibility - You do not give up the option of owning the vehicle, you just postpone it. This gives you time to make sure this is the vehicle for you. This makes great sense with advances in technology that have the potential to make your vehicle outdated.
- High Mileage - Drivers can benefit by applying for extra miles up front at a reduced price. The auto industry deducts 23 - 30 cents per mile over your mileage limit when trading in a vehicle.
- Win! Win! - In many instances, the residual value is comfortably high resulting in lower monthly payments. At the end of the lease, the lease company absorbs the loss, not you!
- Warranty - The short-term lease leaves you covered under your factory warranty, allowing you to be worry-free about unexpected repair bills
- Get a nicer vehicle - High residuals allow you to lease a $5,000 - $10,000 more expensive vehicle for about the same payment as financing
- Tax Savings - In states with sales tax, you only pay tax on your monthly payment, not on the whole vehicle. And in some cases, the entire lease payment may be tax deductible. Consult your accountant for more information
Your Options at the end of your lease
- Return it to the bank
- Sell the vehicle and keep any amount over the residual
- Trade it in on a new vehicle
- Buy the vehicle for the residual amount