NASHVILLE, Tenn. (WTVF) — Buying a new car is expensive...so expensive that a lot people decide to lease a car rather than outright buy it.
The average price of a new car is over $48,000! So, it’s no wonder leasing this year will account for 21 percent of new vehicle sales!
“I think people prefer to lease out a car vs purchasing a new one because they always have the latest technology and the newest models,” said Consumer Reports' Keith Barry.
And comparing to buying new with a loan, leasing a car will lower your bill by an average of 139-dollars a month.
“You just have to keep in mind that there are mileage restrictions and potential excess wear-and-tear charges that could come along with leasing,” Barry added.
After you find the car that you want, it’ll be time to negotiate.
“You can negotiate the vehicle’s overall price, which is also known as the capitalized cost in leasing, and that can significantly lower your monthly
payments, so try to strike a deal that suits your budget!” he continued.
Other things to negotiate are: your lease interest rate, also called money factor, which influences your overall payment. And very important, your mileage allowance, if you anticipate driving more than the standard limit.
Considering an Electric vehicle? A federal tax credit of $7,500 for electric vehicles might make that leasing even more appealing.
“While the tax credit for buying an EV comes with lots of restrictions – where it’s built, how much it costs, where the battery comes from – all those go out the window if you lease. The dealer can claim the full $7,500 tax credit, so first negotiate your best price and then make sure that the dealer passes that on to you by taking it out of the overall price of the car!” Barry said.
And Consumer Reports says leasing a new car is fine, but stay away from leasing a used car as you’ll have higher interest rates and limited manufacturer support. Plus, with the original warranty expired, you’re on the hook for repairing a car you will give back one day.
