Car Leasing Guide: Working Around a Car Lease
The economic plunge has adverse effect on the car-buying populace, but there's a way to go around this. When Chrysler declared that it has put an end to leasing, it created a domino effect on the other car-manufacturing companies; GM and Ford have expressed that they will be giving tighter restrictions for their leasing packages, and financial institutions like Wells Fargo and Chase Bank are headed to the same path.
Leasing as a financing type is appealing to the lessee and the leasing company and car manufacturer. For the car user, it is quite tempting to have a new car every two to three years. For the leasing company, it adds up to their earning that many car users are not quite informed about the leasing process. Car manufacturers used to love leasing since a lot of people tend to use their car models, even for luxury cars.
However, this time, forecasting the residual value of your car has proven to be a nightmare for these companies with the continuous increase in fuel. It is believed that usually leases can be paid off with 40% of the car’s value; right now, they cover only 28% of the car’s total value.
Many have raised concerns about whether leasing is on its last days. Leasing authorities believe that leasing has been around for some time already and has become a commoner in the competitive world of the car manufacturing industry. It is not going away for the reason of any economy downturn.
A car enthusiast who would like to lease should be able to equip one’s self by ensuring a strong credit background; leasing companies will be more scrutinizing this hard-up days. Other car companies will give you more reasons to buy rather than lease a car so you can take advantage of it.