Review Car

Leases Making Comeback

Leases are back in demand in the car world. Research has shown that in December one out of every four new car purchases were actually leases. The recent change in this trend is that auto makers are offering great lease incentives, such as getting a low monthly payment, some as low as two hundred dollars per month for a brand new car. Needless to say, the appeal is there for consumers. In fact, according to research there are around forty cars that are 2011 models that are for lease for under two hundred dollars per month. 

The two auto makers that are leading the leasing world is Honda and Toyota in an effort to stay competitive with other car makers because their lines may not be doing as good without the use of leases. 

But, the catch is that leases have become even more complex than they were before most automakers faced economic hard times. Those that do not read the fine print are heading for a world of trouble. For one thing, most of the leases are allowing the car to be driven around 800 miles per month, which means a one year lease and the person only gets around 10,500 miles in which they can drive the car. Most driver drive over 12,000 miles a year, some as much as 24,000 in one year. 

In addition, the overage price that people are paying is coming out to about fifteen cents per mile that they go over their contract mileage. Another problem with the new leases is that they are requiring a much higher down payment than they did years ago. So the big question should people start looking at leases as a way to get a new vehicle? 

The answer is really up to the person, however, they should be aware of those gimmicks that could add up to thousands of dollar at the end of the lease period.