Leasing is quickly becoming a popular alternative to buying a car. Not only does it offer a more flexible investment style, but it also is more affordable on a monthly basis. This has led a lot of drivers to take advantage of leasing – especially city drivers and young professionals. Is there a reason leasing a car is more affordable on a monthly basis, though?
Even if you have never bought a car before, you know roughly what to expect. Taking out an automotive loan is common. This loan covers the initial price of your car. You then pay down that loan. Your monthly price is derived from the loan amount, your APR, your down payment, and your loan’s term. That price can be on the higher side, especially with luxury vehicles. However, it’s important to know that your paying for your vehicle’s value – its sticker price. The same is not true of leasing.
When you lease a vehicle, your monthly payment is based on the car’s depreciation. Since you are not buying the car, and since leases are short-term investments, this means the monthly prices are smaller. This can be advantageous for drivers who just need a vehicle for a few years. However, leasing the same car for a long time can end up being more expensive than it’s worth.
If you have any questions about leasing or financing, stop by today! Our team at Audi Tysons Corner, located in Vienna, VA would be proud to assist you. We can also answer your questions.
