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Thursday 27 July 2017
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Tip of the Week: Leasing Do’s and Don’ts

Tip of the Week: Leasing Do’s and Don’ts

According to Experian Automotive, in the fourth quarter of 2016 nearly 30 percent of new vehicles were leased. That’s a pretty substantial number of people opting to lease rather than buy. With that in mind, here are some do’s and don’ts when it comes to leasing a vehicle.

Lease if:

  • you want a new model every couple of years
  • you need a lower monthly payment
  • you can choose a loan term three years or under
  • you are a low mileage driver under 15,000 miles or so a year

Don’t Lease if:

  • you drive over 15,000 miles or so a year
  • you need a longer loan term over three years because after three years cars can being to incur expensive maintenance costs

Other tips:

  • Don’t forget to consider insurance when deciding whether to lease. Check with your insurance agent to see if leasing will increase your premiums as it sometimes can.
  • We recommend always go through a dealership, not a third-party leasing company. They generally mark up vehicles bought from dealers then stretch leases out past my recommended three years.

Click here for a list of leasing terms you should know when reading the fine print.


Photo Credit: xiao yu/shutterstock