Financial Advice from Arlington - the ins and outs of leasing

Everything you need to know about negotiating and leasing

· Term:

The numbers of months that you have decided to lease the vehicle.

· Leasee:

The person leasing the vehicle.

· Lessor:

The company leasing the vehicle to you.

· Security Deposit:

In case there is additional damage over and above the age of the vehicle when you return it. Again not all companies charge this.

· Money Factor:

This is the interest rate that’s being charged on a lease and is referred to as the money factor. It’s actually very easy when you know the factor of 2400 and how it’s applied. For example if the dealer promised you a leasing rate of 5.00% and you see a money factor of 0.0021, then just take 0.0021 x 2400 = 5.00%. However if you see a money factor of 0.0025 x 2400 = 6.00%, then you know that the rate promised is not the rate you’re getting.

· Summary:

As long as you remain within the allocated mileage and keep the vehicle in its age related condition, you will get more vehicle for your money than if you financed it. A $30,000 vehicle with no money down at 5.000% over 36 months is $899.00 monthly if financed, whereas you can lease it for $415.00 a month.

For any additional information, or questions regarding other subject matter, contact Sean O’Sullivan at Arlington Financial. Phone: 914-793-1122, email: Info@ArlingtonFinancial.com
 

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