The average consumer is never short on options when looking for a cheap, car leasing deal for affordable monthly payments. Remember that a long term car rental or lease will yield lower monthly payments on your part, but a short term lease can still be taken at a pocket-friendly price.
With the rapid rise in car prices over the years, leasing a vehicle makes more sense to most consumers and enables you to drive a new car every two or four years. This ensures a constant, worry-free car ownership experience. The two car leasing options worth considering for cheap financing are:
1. Closed End Lease
This type of lease is most often called the "walk away lease" and pertains to the end of the lease term. The consumer has the option to return the car to the dealer after the lease term and simply walk away with no further obligation. Remember that other expenses incurred such as damages or extra mileage will have to be settled at the end of the lease term. The average mileage allowed by leasing companies is 12,000 miles annually.
The consumer also has the option to buy the car at the end of the lease term and sell it to make a significant profit. This usually happens for low mileage cars where the value is greater than the estimated resale value at the end of the lease. If the vehicle happens to be valued much lower than the expected residual value due to high mileage, the financial company takes the burden and the consumer is free from any liability (besides the added mileage costs).
2. Open End Lease
This type of lease is perfect for the business owner or those who purchase a vehicle for business use. The consumer is responsible for settling the difference between the estimated residual value and actual market value of the vehicle at the end of the lease. This type of arrangement is beneficial to the business owner, as the cost incurred can be classified as an expense due to business operation.