12 Month Car Leasing

The recession has taken a bite out of everyone’s wallet, and a 12 month car leasing plan could be just the right thing to help you save your money.

What’s car leasing anyway? When you buy or rent a car, you are paying for the full value and ownership of the car. This causes you to lose out on money as the value of the car depreciates over time. When you lease a car, you pay only for the use of the car. This means that you pay less and less as the value of the car drops over time.

For example, you would have to fork over a lot of money to own a $25,000 car. In two year’s time, you can expect the value of that car to drop anywhere around $11,000 to $13,000. Assuming you could actually sell your car, you would have paid anywhere around $14,000 to $12,000.

Just look for an online lease calculator and you’ll find that you can cut those costs by more than half in the same period of time – even if you choose with any type of leasing plan.

This is because there are factors take into consideration when you go looking for a 12 month car lease. First and foremost is the value of the car, which depreciates over time. This factor is a major determinant of a lease deal’s price. You can opt to lease out older models for less or new models for more money, but in the end it will all be the same – you’ll still pay less with the passage of time.

Every company that leases car is always, of course, looking to make a profit. Finance fees are comparable to interest rates, since you are paying the ‘interest’ for using the leasing company’s car that was bought with their money. You can simply ask the company what their basis is for calculating their finance fees to determine whether they are reasonable or not.

And last but not the least is the fact that many 12 month car leases have built in gap coverage. If your car is stolen or damaged while you are in a leasing plan, you will not have to pay for the full value of the car. Gap insurance mixes in with the leasing adjustments made as the car ages, making gap insurance easier to implement in most leasing plans.

Keep all this in mind, and you’ll know just how 12 month car leasing plans can help you save money!

Filed under: 12 month car lease