Reason #3 to Buy a New Car in 2012

3. Generous Leasing Deals

Bargain-hunting consumers have been able to take advantage of some truly unbeatable leasing deals in recent months, thanks to an ideal combination of market forces. “High resale values and low interest rates are contributing to some of the most attractive lease deals we’ve seen in years,” says Jesse Toprak, Vice-President of Industry Trends for the online valuation/car-buying service  That’s because lease payments are largely based on a vehicle’s transaction price, minus its projected resale value at the end of the lease term (also called the residual value) over a given term, financed at the going interest rate. According to data provided by Automotive Lease Guide, the average new vehicle’s residual value after three years has risen from 42.7 percent of its original transaction price in 2009 to 49.3 percent in 2011.

Analysts say leasing deals should remain attractive throughout 2012 and well into 2013 as interest rates continue to be low and used-car inventories remain slim. By 2014, a sufficient number of off-lease models and trade-ins should be coming back to dealers in sufficient numbers to repopulate used-car inventories. A greater supply of used cars in the marketplace should bring down resale and residual values, which will, in turn, boost the cost of leasing a new model.”

Information from, Author Jim Gorzelany


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