Leasing More Attractive Due to Higher Resale Values
Shorter leases, lower monthly payments, and higher residual values for used cars are luring consumers to leasing in growing numbers.
When you lease a car, you're essentially paying for the depreciation cost. Since residual values have been going up, leasing has become a more attractive option.
The average length of a lease dropped to 41 months, which is much shorter than the 64 months of the average car loan.
Leasing is especially popular with luxury-car shoppers.
More than 59 percent of shoppers who chose Mercedes-Benz decided to lease the vehicle. For BMW, the figure was 57 percent.
It's important for consumers to make an informed choice between buying and leasing.
If the monthly payment is the same for buying as it is for leasing, and if you can handle the longer contract term - typically five years for purchase versus three years for a lease - you're still better off buying.
You wind up owning the car at the end of five years. And at three years, you at least have equity in the car.
If you do lease, it's recommended that you stick to a maximum of 36 months so that the vehicle will always be under the included bumper-to-bumper factory warranty.
3 Steps Every Car Buyer Needs to Take to Save Maximum Money
The key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:Step 1 Get Prices From My Trusted Network
Select the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).Step 2 Get Prices From TrueCar / CarsDirect
TrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.Step 3 Complete my Checklist
Follow this up with my checklist to make sure you squeeze out every last bit of savings.- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid
About The Author
Gregg Fidan is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate
the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
Latest Weekly Car Buying Tips
May 2022
- Best Car Deals by Category May 19, 2022
- Which Cars Better to Lease or Buy May 19, 2022
- New Cars You Should Wait to Buy May 19, 2022
- Real Prices of Midsize Cars May 19, 2022
- Best Bang for Your Buck Lease Deals May 12, 2022
- Best Electric, Hybrid Lease Deals May 12, 2022
- Top 100 Cheapest New Cars May 12, 2022
- Real Prices of Pickup Trucks May 12, 2022
- Best 0% Finance Deals May 2022 May 05, 2022
- Best Car Deals Around the Country May 05, 2022
- Real Prices of Large SUVs May 05, 2022
- Largest Hidden Dealer Rebates May 05, 2022
April 2022
- Worst Cars to Lease Right Now Apr 28, 2022
- Biggest Discounts on New Cars Apr 28, 2022
- Real Prices of New Compact SUVs Apr 28, 2022
- Real Prices of Compact Cars Apr 21, 2022
- Top 100 Cheapest Lease Deals Apr 14, 2022
- Cars With the Largest Rebates Apr 14, 2022
- Price Comparison of Subcompact SUVs Apr 14, 2022
- Real Prices of Midsize SUVs Apr 07, 2022
