Lease payments becoming even more attractive

It’s the decision consumers who acquire a new vehicle must make in order to have a payment that fits their budget. Stretch the traditional installment contract out to nearly 72 months or take on a lease for about half of that time.

Perhaps what’s good news for dealership customers and their used-car managers, Swapalease.com reiterated that roughly one in three new models roll over the curb attached to a lease. The site gave an example of a Volkswagen Passat 1.8T S to highlight the payment differential and how the vehicle could return as a prime candidate for certified pre-owned unit.

Swapalease.com noted that if a consumer leased that vehicle, the individual would be looking at a payment of $149 per month for 36 months. With a 60-month installment contract, the payment would be $360.94 each month. Even at 72 months, the buyer would pay $308.16 monthly, presuming the APR would be approximately 3.5 percent to 3.75 percent.

“Leasing has always been known as an alternate form of financing where you typically get to drive more of the vehicle for your dollar, especially in luxury transactions,” said Scot Hall, executive vice president of Swapalease.com.

“However, we’re seeing this gap widen further as a result of increasing MSRP, and as such the gap in payment affordability is noticeable even on many of today’s most popular cars and trucks, not just luxury,” Hall continued.

With Hall's point in mind, Swapalease.com examined the payment differential for a lease versus traditional retail financing for several other models you might already have in your inventory.

Source: Swapalease.com