How much does it cost to lease?
Should we put money down on a lease?
What happens at the end of a lease?
Leasing FAQs
How much does it cost to lease?
Sorry but there is no simple answer. It can cost over $1000 or as little as $350. Your monthly payment will depend on how much the vehicle costs, how many miles you need per year, if you are putting any money down, what is the residual value of the vehicle, and how long you want to lease. The more expensive the vehicle and coversion, the more expensive the lease will be, since a great deal of depreciation occurs in the first years, used vehicles are substantially less expensive. Back to Top Should We put money down on a lease?
We recommend that people NOT put money down on a vehicle, (which is a depreciating asset), but rather keep there money invested,(and growing).) However some folks would prefer to have a lower down payment even though it means having less money to invest. How does it actually work? Let's say you have $10,000 and are trying to decide whether to either put money down, and reduce the cost of your vehicle by $10,000 on a 5 year lease, monthly payments are reduced by $200/month. The payments are lower and the customer actually saves 2000 in interest over the 5 yar period. On the other hand , (and now it gets really interesting), if the money were invested at 7% per year, at the end of five years, the investment will have grown to over $14,000. That is the difference in investing in a depreciating asset versus an appreciating asset, and
THAT IS WHY PEOPLE LEASE .
Back to Top What happens at the end of a lease?
If you keep the vehicle until the end of the lease, you would return it to the dealer from whom you got it. As long as it complies with th lease, (in terms of condition and mileage), and there are no outstanding charges on the lease, (like late charges or parking tickets), you have no further financial obligation. But you have other choices you may want to consider.
You have the option, but not the obligation, to purchase the vehicle at the end of the lease for a specific amount as stipulated in the purchase option of your lease.
This purchase option price is part of the equation that was used to determine your monthly payment. The price is always at wholesale or below. This gives you the option to sell the vehicle and pocket the profit, purchase it outright, or possibly re-lease it. (If you wish to purchase your van before the end of the lease, you just need to call us and we will get the pay-off for you from the bank.) Back to Top
