Benefits Of A Luxury Car Lease
Luxury car owners may be ahead of the curve the first year of vehicle ownership, but fall behind during the next model year. The prestige of driving a Mercedes-Benz may carry these drivers for a few years, but the new car smell fades away quickly. Every luxury car lease is limited to two to four years with maximum annual mileage between 12,000 and 15,000 miles. After a driver finishes his luxury car lease on a new sedan, he can lease another luxury car for two to four years, even as an owner holds onto his original car. The new car smell and the fresh feel of soft leather seats are barely touched by time when the lease agreement is finished.
Another benefit of pursuing a luxury car lease is the relatively low financial threshold needed to lease a new luxury car. A luxury car owner has to pay for the full value of a new car plus interest and fees on the vehicle financing agreement. Leaseholders do not need to pay for the full value of their luxury cars, only the principal values and interest during their brief use of these vehicles. The lease price of a luxury car is significantly lower than the purchase price, thereby lowering monthly payments for the life of the lease.
Luxury car dealers offer maintenance and car care packages to all their customers to keep their service departments busy. A luxury sedan owner who plans to keep his car for at least seven years has to account for regular oil changes, filter replacements, and myriad unexpected problems that may not be covered by these packages. Customers looking to upgrade into luxury cars and SUVs should realize that the limitations of a luxury car lease lead to lowered maintenance costs. Luxury car warranties that last 30,000 to 50,000 miles protect leaseholders from major mechanical problems and manufacturer defects during lease periods. Customers can use coupons and discounted services to acquire factory parts from their luxury car dealers rather than opting for services from non-authorized mechanics.
The sleek styling and luxurious details of a luxury car can make a great impression on an enterpreneur’s prospective clients. As a business owner pulls up to the airport to pick up out of town clients, the initial impression of a luxury car is different from a traditional car. While clients may find sedans and town cars sensible for airport runs, a luxury car shows that the driver has the financial resources to acquire such a vehicle. Business owners taking their leased BMWs© and Volvos© to meetings, conferences, and other events show the competition that they are serious about their public perceptions. A luxury car lease can push a small business owner into another stratum of marketing and client perception without the expense of a luxury car purchase.
Explaining The Popularity Of Luxury Car Leases
The recent popularity of luxury car leases has emerged from parallel interests between dealers and consumers. The typical sedan leased out to a driver is returned with 24,000 to 48,000 miles, cleaned, and repackaged for the dealer’s used car lot. The disparity between the new and used car value for popular vehicles like the Ford Focus® and Toyota Corolla® means that traditional dealers encourage purchases rather than leases. Luxury car dealers, by contrast, have constant demand from consumers as well as lesser disparities between new and used car values. Lexus©, Audi©, and Land Rover© encourage consumers to lease their vehicles to secure monthly payments in the short term before selling used cars at minimal discounts in 24 to 48 months.
As luxury automakers push for leases rather than purchases of new vehicles, consumers are treated to favorable monthly payments. Luxury car dealers can afford to offer slightly lower monthly payments on leases because of the likelihood of selling leased cars in the future. While luxury car dealers do not heap financial incentives on their customers, luxury car leases feature relatively low deposit requirements in relation to the values of these cars. Luxury car leases can help families and individuals afford cars that would lie outside their budgets if purchased outright.
The cliché that a vehicle loses value as soon as it leaves the dealership helps explain the rise in luxury car leases. Well-informed consumers realize that financing luxury cars for three to five years and owning these vehicles for seven to ten years can be quite costly. In addition to the upfront costs of purchasing luxury cars, foreign-made sedans and sports coupes can be expensive to maintain. The drastic depreciation in vehicle value for a Lexus© or Mercedes-Benz© makes purchasing a luxury car a bad investment.
Independent Luxury Car Leases
Newcomers to luxury car leases may be tempted to finance their sedans and SUVs through dealerships. These consumers do not realize that luxury car dealers do not use the same incentives and financing rules as conventional dealers. The lower inventory held by luxury car dealers along with the higher price per unit for luxury brands mean that dealers are not inclined to make their vehicles cheaper. Smart consumers will explore alternative leasing options through independent lease providers like Capital Lease Group© (http://www.capitalleasegroup.com/) and Transworld Leasing© (http://www.transworldleasing.com/).
An independent lease provider helps finance a luxury car lease by acting as an intermediary between the dealer and the customer. These providers look for borrowers with ample financial resources, high credit scores, and impeccable credit references to reduce lending risks. After surmounting these high standards, a consumer can determine how much money can be borrowed to pay monthly lease payments. Customers can decrease their down payments and monthly fees on luxury car leases by tweaking service packages, choosing lower annual miles, and trading in their used vehicles. While financing through a luxury car dealer may seem more convenient, an independent lease can save a consumer hundreds of dollars in interest.
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