Automobile Leasing Is Making A Comeback- Which Means You Save Money

With car finance loan interest rates on the rise, and fewer incentives, rebates, and discounts available for purchasing vehicles these days, there is at least one piece of good news: Automobile leasing is making a comeback and that means more benefits for you.

Car leasing is at a four-year high, now accounting for 21% of new vehicle transactions, up from 13% last fall.

Flexible leasing periods and bargain prices are just the tip of the iceberg. In order to move the cars they aren't selling, manufacturers are willing to subsidize the residual value of cars, making monthly payments more affordable.

Short-term leases are no longer a problem either, but all this generosity is not exactly out of the goodness of the auto manufacturers' hearts. Thanks to successful Certified Pre-Owned programs, automakers are pretty sure they'll make their money back when your lease is up, because newer cars are now easy to certify and sell as pre-owned vehicles, so residual value isn't that big a deal.

Because carmakers realized that pre-owned cars can be sold at a higher profit margin, they actually encourage your lease to be no longer than 36 months.

You might also find dealers more willing to negotiate your mileage allowance - typically 10,000 to 15,000 miles a year - as well as any early termination fees. Remember, the lease agreement is a contract, so you can negotiate the terms. Some credit unions that offer leasing services also give sales tax exemptions, where applicable. If you've been thinking about leasing a car, well, this just might be the perfect time.

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