About Leasing

Leasing is a great option which lowers your monthly payment, decreases your overall cost of ownership and allows you to get more vehicle for your money. Below are some examples of how leasing can benefit you over purchasing a conversion vehicle with a loan.

Lower Your Monthly Payment

When calculating your budget, transportation often comes as an afterthought. However, for many of our clients who live on fixed incomes, it has to be at the forefront to ensure mobility. Most of us are paid on a monthly basis a certain income which we have to budget accordingly. Since we put an emphasis on monthly budgets, the number-one reason to lease a vehicle is to get a lower transportation payment. When we know how much our transportation will cost us each month, we can work to keep more of our income and enjoy more of our paycheck. The average savings on a monthly lease payment over a loan is typically about 25-30% (auto industry average). This is significant savings and means more money can be used in other areas of your life.

Lower Your Overall Cost of Ownership

If you generally keep a vehicle for less than ten years and if you drive 5,000 to 10,000 miles per year, you could save substantially by leasing a vehicle rather than owning the vehicle outright.
When you pay cash or finance a vehicle, you pay for 100% of the vehicle either up front or over a period of 60-120 months. You will most likely have to pay interest on it and over the course of its use depreciation will occur, meaning you will not be able to sell it for what you bought it for.

When you’re ready to sell your vehicle after owning it (to recoup its monetary value) you have a few options. You can list it yourself as a private party, sell it to a dealer or list it for consignment with a dealer. Remember: Mobility of Denver can help you with the latter two options.

When you sell your vehicle, you will be getting either trade-in on it or, if you want to spend the time, energy and headache, you should be able to get private party value for it. However, it will be less than what you bought it for so you will need to factor in the depreciation. This is hard to do when you don’t have the resources to calculate future values.

Remember: with leasing, unlike renting, you have to pay for normal maintenance such as oil changes, tires, bulbs and batteries. However one of the major benefits of leasing is that you never have to pay or think about replacing parts that wear out, such as CV boots, engine belts, engine seals, fuel filters, shocks, spark plugs, struts, or timing belts.

If you drive 10,000 miles per year, a 36-month lease would end with 36,000 miles on the vehicle. This is ideal as both the OE Manufacture (Chrysler, Dodge, Honda, or Toyota) and the VMI warranty will cover all the vehicle’s components, bumper to bumper during the lease period.

When you purchase a vehicle and drive it 10,000 miles per year, at the end of six years, your vehicle will have 60,000 miles on it, which is right about the time these components are recommended to get serviced (65,000 miles for Chrysler, Dodge, Honda, and Toyota)

When you purchase a vehicle, you take all of the risk of what the vehicle is worth in the future as book values and the market change. However when you lease, there is no risk to you on the future value of the vehicle. At the end of your lease one of your options is to turn the vehicle in and if it is not worth the calculated residual, the leasing company has to absorb the loss in value. You do not.

The longer you own your vehicle for, the more you will have to pay out in maintenance. Because vehicles have components that are designed to wear out and because you will be out of warranty on a vehicle you will be responsible for all repairs, out of pocket. Most manufactures powertrain warranty ends at 60,000 miles so you will be responsible for all unexpected repairs on top of further scheduled maintenance.

Drive with The Newest in Safety and Technology

Finally, a huge reason to lease your next mobility equipped wheelchair accessible vehicle is that you’re getting the very latest in vehicle and adaptive technology. By driving a new vehicle every three years you’ll have the newest safety features, the newest design features, and the newest technology systems.

Put it this way: some safety features such as collision avoidance and blind-spot detection weren’t even available on many vehicles just a few years ago. Now Honda has the HSE (Honda Sensing) system and Chrysler has the Full-Speed Forward Collision Warning with active braking (FCW+), as well as Parking Assistance, and Blind Spot Monitoring (BSM). Even Back-up cameras used to come as options or were’ available (none on the Dodge Grand Caravan up to 2016). Now all new vehicles have them (after 2017)

So let us know if you’re interested in leasing and would like to learn more. There are many factors to consider and each financial situation is different. For more information on leasing please contact us.