Advice for Leasing a New Car

Video Transcript

"Hi, this is John Michaels with Expert Village. Today we're going to be talking about buying a new car. In this segment, we're going to talk about leasing a new car. Leasing a new car is usually the best way to afford a lower monthly payment. Anything you're looking at the option of purchasing or leasing when it comes to a new car, you're residual is going to be the lowest that will ever be when leasing a new car. So nine times out of ten, provided that your money factor or interest rate is low enough, a short term to a long term lease will definitely, definitely be less expensive to afford on a monthly payment than financing a car for a longer term. But watch out because sometimes leases are not advantageous. Make sure that if you are looking at a lease, that you do fit the criteria, meaning that you drive within the proper amount of miles and that you can return the car in the condition that it needs to be returned in order for you to take full advantage of a lease program. So don't forget, there are many other creative ways of purchasing a car. Leasing is just one."