Factory leasing is leasing from different manufactures such as: Ford, Chrysler and GM. Factory leasing was introduced back in the early 1990’s as a way for the consumer to own a vehicle without having too much upfront commitment (down payment and monthly) on their behalf. At first it was a slow process to get the consumer keen on this idea as the consumer did not like the idea of owning a vehicle for a short period of time and have to return the vehicle with nothing to show for after 4 years of payment making. Car leasing is a way of paying for the usage of a vehicle over a specified period of time (typically three, four or five years). Vehicle leasing is similar to traditional renting but they are very different; don’t get the two confused, whereby you can rent a car for a little as a day, or even a few hours, vehicle leasing typically starts at 24 month terms.
Typically vehicle leases are more attractive to the customer because in most cases the consumer can drive a vehicle cheaper than purchase-finance payments. With little or no money down a consumer can drive a vehicle at affordable price that suits their needs. When you lease you negotiate a purchase price with the dealer just as you would if you were buying. Usually you would only have to negotiate a price when the dealer is offering a special advertised deal in which the price and the other factors of the lease are already set to attract your business. (For those of you that are in the market for a new vehicle and you are considering leasing the vehicle); Leasebusters has become a great marketing tool when shopping for this lease, as consumers are simply comparing lease prices on vehicles they are interested in leasing to get a good idea on what they should be paying on a certain vehicle.
When you lease is coming due there a few options you might want to consider before returning the vehicle. Firstly, you are expected to return the vehicle to the leasing company with no more than normal wear and tear. You will have to pay for any damage or excess kms over and above the amount contracted. You may have the option to purchase the vehicle at the lease end for a set amount determined by the leasing company. Or you can simply just return the vehicle and walk away. We encourage all customers to check the market value as you could possibly have equity value in the vehicle and you don’t want to just give it back to the leasing company (this is rare today but still possible). Try to make the best decision about what to do with your vehicle at the end of your lease. Returning the vehicle back to the leasing company, buying it or extending your lease…..all viable and good options. You should look at each option carefully and make the best decision that suits your needs.
Thank you for reading this first segment of my Leasebusters Lease-Blog. We at Leasebusters encourage you to make your comments and we will publish your thoughts and continue these informative segments based on your participation and encouragement.
Happy motoring – leasing – financing – owning and enjoying…..
Michael Gordon
Account Manager |