Spread Out Personality Lease For Free

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Most manufacturers have a 24-, 36-, 39- and 48-month lease. Mileage and time determine what the residual value is for the vehicle. Generally speaking, the 36 and 39-month lease will offer the best residual value. Some vehicles will actually lease better than others because they hold their initial value better.
But, if you choose a 48-month lease you will have a driving a mileage allowance of 48,000 to 60,000 miles. While there are a couple of advantages to a longer term car lease, it's not always a good idea. In fact, the potential dangers usually outweigh the advantages that using a longer car lease may offer.
A 39-month lease based on the 36-month residual value of the car will give you lower payments, but you'll pay more overall. And you might be driving for three months without a factory warranty, so a major breakdown could cost you big time in repairs. That means you pay more for this type of deal.
The biggest benefit of leasing a car rather than buying is that you can usually get more car for your money by leasing. A lease involves paying the depreciation on the car rather than the entire purchase price. Leasing also benefits drivers who don't have much money saved up for a down payment.
1. Your monthly cash flow: Leasing a car often has a lower monthly payment compared to financing a car with the same loan terms, since with a lease you're paying for the depreciation of the car during those years rather than the whole vehicle cost.
Higher “residual” is always preferred. If you want to walk away, then lease. Higher residual is LOWER lease payments. If you want to keep the vehicle, then buy. Higher residual is higher resale value when you turn it over.
An excellent residual would be 55%-65% of MSRP. The third factor that is important in a lease deal is MONEY FACTOR. Money factor is an expression of the finance rate, similar to interest rate in a loan. The lower the money factor, the lower the lease payment, and the better the deal.
In fact, every lease where buyout is available will specifically include the residual value of the vehicle. But you typically can't negotiate it like you can with other lease terms (although you can try). So less depreciation (or higher residual value) can mean lower monthly payments over the lease term.
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