Leasing a new car is a great option for drivers for several reasons:
Another reason to lease is that it gives you an "out" without any negative repercussions.
Here's a great example of this: A friend of ours who got rear-ended in her leased Jetta, two years into her 3-year lease. Her insurance company fixed the car, and she continued to drive it for another year. At the end of the lease, she was able to turn the car in WITH NO NEGATIVE PENALTY. Compared to if she had financed or purchased that car and then decided to sell it, it would have brought a significantly lower value because of the accident.
There's also no interest on a lease. Instead, there's a "money factor" that acts as a multiplier that is evenly distributed across each lease payment. This is in contrast to financing interest that is front-loaded through amortization. In other words, this means you are paying down your "principal" balance sooner and faster than on a traditional financing purchase.
Volkswagen is known for having industry-leading lease payments and incentives. They do this through LOW Money Factors and Rebates on nearly every model.
After our sales associates go through training to understand how leasing works, over half of them typically lease a new Volkswagen. If that isn't a tell-tale sign that leasing makes sense, we don't know what is!
Have you heard any of the following reasons that you shouldn't lease a car? These reasons may apply to some drivers, but for many motorists, leasing a new car makes a lot of sense.
We don't recommend leasing to those who drive more than 15,000 miles per year. This is why leasing isn't as popular on the mainland. Still, in Hawaii, especially Maui, leasing works great for most people's lifestyles and provides a budget-friendly option to drive a safe, reliable, new car.
However, we had a CPA lease a car from us who drove more than 15,000 miles per year. She said the tax incentives from leasing -- even with the mileage overage at the end of the lease -- made more sense than purchasing. So she simply set aside a few extra dollars a month to cover the mileage over at the end of her lease. As you can see, there are exceptions to every rule or recommendation!
At the end of the lease you have 3 options:
Here's how we recommend choosing the right decision at the end of a lease:
Residual is the amount that you are paying the balance down to, based on a determined percentage at the beginning of the lease by the manufacturer. The residual is based on how many miles per year you select (such as 7,500, 10,000, 12,000 or 15,000 per year). One example is a $30,000 car with a 55% Residual, or a $16,500 balance.
KarMart Superstore of Maui is your source for new Mitsubishi and Volkswagen cars, crossovers and SUVs in the Kihei, HI, area. Our auto superstore serving Kahului boasts competitive lease offers that could help you upgrade to a new VW or Mitsubishi with highly affordable monthly lease payments.
So what are you waiting for? Don't hesitate to contact our sales and finance specialists today. Or, just stop by our auto dealership at your convenience and let us go over the array of new car lease options available to you!