Is The Time Right To Lease A Car?
I have to admit that this is a topic I wasn’t sure would ever come back almost 4 years ago. It was early in 2009 when almost every car dealership decided that leasing cars was a bad practice and ended these types of programs. At the same time though our financial world was crashing, to the extent that even banks stopped sending out credit card offers; those were good days.
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It seems that car leasing is back, and if a strong way. Not only are the payments for cars pretty low, but many dealers are offering the same money down, an extended payment arrangement, and saying that your credit is good no matter what state it’s in.
Why is this happening? Here are some reasons:
1. The economy is improving. No matter what naysayers believe unemployment is dropping, the economy has been growing for years, albeit slowly, and almost every other industry is recovering in some way.
2. The fallout of car dealerships that folded and styles of cars that went away is long past. While I’m upset that I’ll never be able to purchase a Grand Prix again (although car styles sometimes come back), those models that are around are pretty good, remaining car dealerships are strong, and competition is a good thing once again.
3. Inventory; there’s too much of it. Whenever there’s too much inventory great deals are offered, and none get as good as the automobile industry.
4. Everyone is being pragmatic in realizing that the last 3 years have been an aberration on many people’s credit reports, and some dealers are able to overlook bad credit that’s occurred during that period.
If it’s a great deal for individuals what about businesses? Companies that need large numbers of cars, such as car rental companies and governmental agencies around the country, are also finding that they’re getting great deals on car leasing opportunities. Fantastic maintenance packages as fleet management services are being offered from some of the larger car manufacturers who are trying to bring some of their former customers, who have had to rely on older cars for awhile, back into the fold.
Not all deals are the same, however. A leasing deal for a Hyundai will probably offer most consumers a better deal that one for a Lexus, and smaller cars will be a better deal overall that large cars. Whatever your needs are, the time seems to be right to look at leasing once again, no matter if you’re an individual or company.