You probably have a good idea of the vehicle that you want to drive. Sometimes the hardest decision you have to make is which type of financing is right for you. Purchase or lease?
Our friends at Fairlease have provided the information below to help detroy the myths about leasing.
Myth 1 - High mileage drivers should not lease. False! High mileage drivers can make great auto-leasing candidates! The number one way to depreciate the value of a vehicle is to drive high miles. That vehicle then becomes the most difficult vehicle to resell. Fairlease allows you to customize your lease agreement for over 15,000 miles a year so you won't have to worry about trading or reselling a high-mileage vehicle.
Myth 2 - Wear, tear and mileage are penalties. False! Wear, tear and mileage expenses are an equalizer. When you agree to "lease" a vehicle from the the registered owner, the owner guarantees the residual value of the vehicle. If you drive more miles than agreed, you use more of the vehicle's worth, and therefore you will pay for those miles at lease end. If you own the car, you resell it for less and you still absorb the expense of the mileage and excess wear and tear. Whether you lease or own the vehicle, driving high miles or incurring excess wear and tear will affect the vehicle's value.
Myth 3 - You don't own the car. True...but does that matter? In the lease relationship, the lessor owns the vehicle and you lease (or rent) the use of it. Therefore, at the end of your automobile lease term, the car is returned to the lessor who resells the vehicle. If you want to own the vehicle at the end of your finance term, you can continue to drive a used, depreciated vehicle or you can sell it yourself. You then own the depreciating asset and its value is worth far less than when you purchased the vehicle.
Myth 4 - Automobile leasing is only for the wealthy. False! Automobile leasing is for anyone who has qualifying credit. You don't have to be wealthy to understand the value of leasing. Everyone has the same opportunity to minimize monthly expenses and maximize savings and investments.
Myth 5 - Leasing requires more expensive insurance coverage. False! Many leasing companies may require higher limits of liability coverage causing your monthly insurance costs to rise. Not at Fairlease! We require the state minimums of liability, exactly like a conventional auto loan.