You Can Lease A Car For Less

Auto leasing is an option for consumers wanting a new car, but not wanting to be saddled with a car loan. Auto leasing has had its supporters and detractors and there are valid arguments for and against auto leasing. For brevity's sake we won't be discussing those issues. Instead, let's take a look at how auto leasing can work to your advantage.

At one time auto leasing was chiefly the province of companies, not general consumers. Back in the 1980s that all began to change as the financing arms of the major USA automakers decided to bring this feature to consumers. At one point roughly one in four new car "purchases" was auto leasing giving consumers an additional purchase option to conventional financing.

You can lease a new car for less if you keep in mind these specific auto leasing principles:

Closed end lease - Never get an open end lease as that may require you to purchase your vehicle later. With a closed end lease once your car has been returned then your auto leasing obligation ends.

No money down - Some of the best lease deals do not require you to put any money down. Be careful of cap cost reduction stipulations that require you to fork over some money to reduce your lease obligation.

More car, less money - One of the most significant aspects of auto leasing has always been helping consumers get more car for the money. That $35,000 Cadillac may have been beyond your budget at one time, but with a $399 per month lease offer you can now drive the car of your dreams. Compare that to 60 month payments of $549 each on an auto loan and there is no wonder that auto leasing is an attractive option for some!

Drive and trade: So what that you won't eventually own the car, you'll be ready to trade it in for the newest model in two or three year's time! Auto leasing can put you into a new car every few years without the hassles of trading in your old car.

Some consumers who drive well under the annual mileage requirements report that by the time they trade their car in, all of the maintenance that they have done is oil changes and the occasional tire rotation. Keep any car longer than four or five years and you know that maintenance begins to mount.

Yes, auto leasing is an attractive option, worth considering if you are looking at new cars.