Leasing is a very popular choice for many drivers. As your Cadillac dealership, we want to tell you some of the leasing benefits you receive when you lease a new Cadillac from us.
4 Leasing Benefits Available at Your Cadillac Dealership
No Depreciation Worries
If you buy a vehicle, depreciation is an ever-present worry. Depreciation is the decrease in a car’s value over time due to natural wear and tear, mileage, and other factors. Within the first two years of ownership, a vehicle can lose up to 30% of its value, reducing the price you can get when you decide to sell it.
When you lease a Cadillac, depreciation isn’t an issue. Since you don’t own the vehicle, you return it at the end of the lease period, and you can choose to sign another contract for a brand new vehicle.
Lower Monthly Installments
If you choose to finance a new car, the amount you owe is calculated by subtracting any discounts, incentives, and the value of any trade-in from the sticker price. You then add applicable taxes, fees, and the cost of any optional extras. Interest on the loan amount is then added to the total, which is then divided by the loan term to yield your monthly repayments.
When you lease, you’re not paying the vehicle’s full value. Your payments are based on its residual value, which is the difference between the vehicle’s price when it’s new and its value at the end of the lease. You then add the money factor, which is the cost of financing the lease, and divide this total by the number of months in the lease.
Reduced Maintenance Costs
If you buy a vehicle, maintenance costs are low for the first few years, but even a Cadillac will have increased maintenance costs as it gets older and more expensive and complex systems need repair or replacement. If you plan to keep the vehicle for the long term, you’ll have to budget for these increased costs.
When you lease a Cadillac from us, your maintenance costs are very low for the first few years, but you don’t have to prepare for any long-term maintenance. The average lease agreement is two to three years, limiting maintenance costs to tire rotations, oil changes, and other inexpensive services.
Easy Replacement
If you’ve bought a vehicle and want to replace it, you can trade it in toward a new car or sell it. If you sell it, you pay for any repairs or servicing to get the best possible price. You’ll also need to advertise and wait for a response. With leasing, you just turn the car in and you’re done!
If you want to know more about the benefits of leasing or to lease a Cadillac, contact us at Ross Downing Cadillac in Hammond, LA.
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