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Popularity Explosion
Leasing has grown more than tenfold in less than a decade. It accounts for
more then 36% of the over 15 million vehicles sold in the United States each
year. Why the dramatic upsurge in leasing? The main causes are changes to
the tax laws. Additionally, the many tax deductions that favored purchasing
over leasing were eliminated. Since those tax laws were changed, leasing has
enjoyed a steady 2% to 3% increase per year for the last ten years.
How it Works Leasing
is a simple concept. Payments are low, because you pay only for the portion
of the vehicle's value that you actually use, not the total value. Also,
most leases require little or no down payment.
Initial Lease Costs
First & Last Lease
Payment in Advance: Some leases require the first and last payments at the
beginning of the lease term. If you have a good credit rating, you may not
be required to make the last payment until the end of the lease.
Capitalized Cost
Reduction: You may have the opportunity to lower your monthly lease payment
by making a one-time payment to reduce the car's initial capitalized cost
(the total cost of the vehicle) including any fees, insurance, maintenance
contracts or options you request.
Insurance: Interstate
Auto Leasing provides you with all necessary insurance information when
entering into a leasing contract. Insurance may be purchased through the
agent of your choice.
Lease vs buy
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