Benefits of Car Leasing

chris on April 20, 2017

At D&M Leasing we get asked a lot, “why is leasing a better option for me?”

There are so many benefits to leasing a vehicle. You may think you actually own your car but try skipping a few payments and see what the bank has to say about it. That’s exactly why more people are deciding to lease from D&M Leasing.

  • It’s better to lease a depreciating asset than to own it. We all know that a car’s value drops the second you drive it off the lot. Why own something that is losing its value?
  • We’ve heard people say “I would rather own my car.” But in reality, you don’t own that car until you pay it off. For most of us, it takes several years to pay off that car. Until then, the bank owns it.
  • You can get a new car more frequently. Leasing is a great option for those who love being able to drive a different car and keep up with the latest models. Every few years you can trade in that car and pick out your next one!
  • When you lease a car, you have a warrantee that covers normal wear and tear reports. No need to spend money getting your car fixed.
  • With our EZ Lease you don’t have to put any money down and you won’t make a payment for 60 days!
  • You have a guaranteed trade-in value. When you’re ready for your new car, trading your old one in is no hassle.

It’s because of these reasons and more that people are switching over to leasing. Let D&M Leasing show you why leasing with us is the better option for you! For a full description of what our lease options can do for you, take a look at our EZ Lease.

Why Car Mileage Matters

chris on July 31, 2016

Mileage is a simple, yet effective way of measuring a car’s use. It gives calculated insight on a vehicle’s condition such as when it will need servicing.

There are three main milestones in a car’s life span:

1. The First Few Years

If you’re mileage is in the 30,000 – 40,000 miles range, depending on its care, you can get a great offer whether you sell or trade in. Selling or trading in is ideal around this time because most factory warranties expire around 36,000 miles or 3 years, as the average driver uses approximately 12,000 miles per year. This is also around the time your car will have its first non-routine maintenance visit to the auto shop. Services usually include brakes, tires, and other parts that wear out rather than break. These repairs can easily cost over $350. It’s wise to sell or trade in before the 36,000 mark, especially if it hasn’t had its first major service visit.

2. The Second Visit

By the time your vehicle reaches 60,000 – 70,000 miles, you have either already visited the service station for a second, more expensive reason. If you have not, you will soon. Your vehicle’s tread has significantly worn down by this time, meaning you’ll need new tires, hopefully before a blowout. Tires cost around 50 – 70 dollars per, and most auto shops require you to buy two at a time. Replacing your brakes ranges from $100 to $300 on average. Replacement expenditures vary depending on your vehicle make. You may want to consider selling or trading in before your second servicing visit.

3. The Last Mile

You are in dire need of a new vehicle once you reach 100,000 miles. If not, you’ve probably invested thousands in repairs and replacements, or you will soon. Even though cars are more reliable now, lasting far past 100,000 miles, they still only depreciate. You can start fresh by trading in or selling it yourself, or hold onto it until it’s practically a new vehicle from the insurmountable amount of replacements and repairs you’ve invested in it. The choice is yours, but if you wonder if your car is going to start or not, or you’re worried about breaking down every time you leave the house, it’s time to let your car go.

If you think it may be time to trade in your vehicle, contact D&M Auto Leasing or fill out a form on our New Car Leasing page. We guarantee the best value for your trade-in vehicle.

Is Used Car Leasing a Smart Option?

chris on July 31, 2016

Why Lease a Used Car?

2015 new car sales hit record highs, saturating the market with pre-owned inventory. To make up for the disparity, manufacturers are offering leasing options for gently used cars.  More are opting in on this trend as the need for a pre-owned market increases. Luxury carmakers are also partaking by offering reimbursements for repairs, regardless of warranty, in hopes to sway dealers into leasing used car fleets. Manufacturers may need to lease their gently used models, but why would anyone want to lease a used car?

Used Car Leasing Pros and Cons

Driving a new car every few years is one of the main selling points of leasing, so how could leasing a used vehicle have any benefit? While leasing is commonly associated with new, there are advantages to leasing used. Pre-owned vehicles have already overcome their greatest depreciation hit, decreasing difference between the residual and original value. Unlike new vehicles, you could actually benefit from low residuals through lower monthly payments. Normally, you would want a high residual value, but used vehicles are an exception because their starting price is already lower to being with.

Although it has its advantages, don’t rush into a used car lease just yet. Not all pre-owned vehicles are ideal for leasing. To make things simple, lease a vehicle with a Certified Pre-Owned warranty. You’ll decrease the likelihood of paying out of pocket for repair.

Which Used Cars to Lease?

Lexus has a history of thorough Certified Pre-Owned warranties, as well as a reputation for reliability. If Lexus isn’t your brand, Acura, Porsche, and BMW are also viable options. Non-luxury vehicles that have a reputation for holding their value are Toyota, Honda, Subaru, and GMC.

As the used car leasing market grows, offers will only become more competitive. If you’re considering leasing a used vehicle, check out our EZ Lease option for the lowest rates by any company on a standard new or used car lease.   

6 Signs It’s Time for a New Vehicle

chris on July 31, 2016

Cars are one of worst investments anyone can make considering that they only depreciate in value. Regardless, you still need a reliable vehicle to get you where you need to go, that’s also suitable to your daily life. You may love the car you’re driving now, but the truth is you are going to have to replace it at some point. Paying attention to the following signs can help you determine if it’s time to trade in your vehicle.

1. You Ignore Your Check Engine Light

Your check engine light doesn’t illuminate for no reason. If you’ve already had a mechanic look into this, and there was nothing wrong with the engine, but the light continues to turn on, it’s defeating the purpose of a check engine light. How are you supposed to know when something really is wrong with the engine? This may seem minuscule, but it is one of the first signs that your car is wearing down.

2. Vehicle Inspections Make You Anxious

Annual state inspections are a requirement in Texas, as well as many other states. If you’re having a difficult time bypassing inspection failure, you may want to reconsider your vehicle.

3. You’re Constantly Gassing Up

Although gas prices have been very reasonable lately, frequently filling up your tank is a budget suck. New cars are becoming increasingly fuel-efficient to satisfy consumer demand. As the price of gas also fluctuates, keeping your gas guzzler may not be saving you a significant amount.

4. Your Car Has Broken Down Repeatedly

Breakdowns are highly dangerous, and simply not worth the risk. If your car has broken down more than once, it’s time to put your safety first.

5. You’re Constantly Spending Money on Repairs

Common car replacements include new tires, new brakes, and perhaps a new battery, if you forget to turn your lights off. If you’ve moved past this point and are onto more serious work, consider trading your car in. If the vehicle is still operable, use the vehicle’s value towards a new car and save yourself the burden of future repair costs.

6. You’ve Reached the 100,000 Mile Mark

Congratulations for taking such great care of your car that you’ve reached this point. However, the road ahead is paved with expensive repair, replacement, and breakdowns. Dodge the stress and sell or trade-in your car for a vehicle with lower mileage.

Unsure if it’s time to trade in your vehicle? Trust D&M Leasing to help you make the most informed, financially advantageous decision.

Beat the Heat! Prevent Sun Damage to Your Car

chris on July 31, 2016

As the dog days of summer are still well upon us, the intense summer heat can cause major damage to your vehicle. If you are currently leasing a vehicle, sun damage could surpass the amount normal wear and tear agreed upon in your car lease. If you intend to eventually trade in your car, sun damage prevention will help you get the highest vehicle trade-in value.

Review the following details for how to help prevent sun damage to your car:

Tires

Sunlight heats the pavement as badly as it heats up your tires. This is a terrible combination for your tread, especially if it is already worn. Check your tires monthly to make sure the tread is adequate and each tire’s air is at the proper gauge.  

Battery

Heat can deplete your car battery, accelerating its need for replacement. Try to park in the shade or under covered parking to help shield your vehicle from the heat. Also, keep jumper cables in your vehicle to prevent yourself from being stranded. Always have someone who is experienced jump the car battery for you, since this can be extremely dangerous if not done properly.

Engine

Stay on top of your oil changes because the engine needs to stay well lubricated throughout the summer in order to keep it running properly. Also, routinely check your car’s temperature gauge, if the temp is high, it could be due to inadequate coolant levels. If its coolant levels are low, there could be a worn hose or a damaged radiator.

Interior

Preserve your vehicle’s dashboard, and save your hands from a burning hot steering wheel by investing in a sunshade. Even the cheapest sunshade goes a long way in preventing interior damage.

Whether you have a leased vehicle or own your car, protecting your vehicle from damaging heat conditions is essential.

6 Common Car Leasing Setbacks

chris on July 22, 2016

There are 6 common setbacks customers often experience when setting out to lease a vehicle. We can help you work around these obstacles and assure you that you are receiving the best deal.

1. I can’t find the vehicle I want to lease.

D&M works nationwide to give you the exact car you want, any make, any model, doing all the hard work for you.

2. I don’t understand the lease process.

D&M’s leasing agents make the lease process simple and efficient, guiding you every step of the way.  We are also haggle-free, meaning no obligation from you. If you just want a quote, we’ll give you one: no cost, no hassle. Take advantage of D&M Leasing’s best in class customer service today.

3. I don’t want to be trapped in a lease contract.

Our EZ Lease allows you to opt out of your lease without early termination fees.

4. I have poor credit.

D&M Leasing staff understands that every client’s situation is unique. We aim to meet our customers’ needs, and give you the best possible lease deal. If your credit score is very low, you may want to consider adding on a cosigner. Consult with a D&M’s leasing agents to advise on the best options for your situation.

5. I drive a lot.

The average driver accumulates 15,000 miles annually. Most car leases require you to stay under 12,000 miles per year. D&M’s EZ Lease was created to manage high mileage use. Consult a D&M Leasing agent to discuss the best way to handle your average annual mileage. 

6. I don’t trust leasing companies.

75% of D&M Auto Leasing’s business is attributed to repeat and referred business. We have a continuously growing community of satisfied customers that recommend us to their friends and family.

D&M Leasing takes the time to learn your personal needs and situation to find you the best vehicle for your lifestyle, for the best deal. Call us today.

Car Leasing Advantages and Disadvantages

chris on July 22, 2016

Buying Advantages

Since you own the vehicle, you can trade it in or sell at any time and use the value towards your next vehicle. Buying is also ideal for commuters and frequent road-trippers that accumulate well over 15,000 miles annually. Car buying is the most cost effective in the long run since you are paying off the entire vehicle.


Buying Disadvantages
Unless you have excellent credit, you are going to have higher monthly payments. Even with great credit, you are still paying off the entire vehicle plus interest.

Cars only decrease in value. A new car loses up to 11% of its value just by driving it off the lot. A vehicle is only considered an asset to the bank if the current value is higher than the amount owned. Every year, that asset will decrease.

Owning can be expensive if you intend to keep your vehicle for more than a few years. The warranty coverage will expire, leaving the cost of upkeep completely up to you.

Leasing Advantages

One of the strongest assets of vehicle leasing is that you drive more car for less. You are able to consistently drive a new car, only paying for the depreciation, rather than the entire cost of the vehicle, therefore making your monthly payments lower than monthly loan payments.

Car leasers also prefer the lower down payment, and lower monthly payments. For qualifying leases, D&M’s EZ Lease waives the down payment as well as the first two monthly payments.

Another convenience of leasing is warranty coverage. Since you are only driving the vehicle for the first few years, it’s most likely covered by the manufacturer’s warranty the entire term. You also turn the vehicle in before maintenance becomes costly.

Leasing Disadvantages
Most car leases require you to stay under 12,000 – 15,000 miles per year. Going over your mileage can be expensive, depending on your lease. If you acquire more mileage, and want the flexibility to opt out of your lease without termination fees, check out our EZ Lease.

For most car lease companies, early termination fees can be outrageous, if termination is even an option.

Buy or Lease?

Both buying and leasing a car have its advantages. Your values and current situation are a large factor in determining which is best for you. Contact D&M Leasing for a free car lease quote, or check out our lease return inventory, if you think buying is a better option for you. Whichever you decide, D&M Auto Leasing is here for you.

The Perfect Time to Lease Your Next Vehicle

chris on July 22, 2016

Why Lease?

Many assume that leasing is like renting, but it is actually just another way of financing for a vehicle. Rather than you buying the vehicle directly from the dealer, a car leasing company buys it for you, and then you pay for the “use” of the vehicle. At the end of the lease, if you still love the car, you can buy at trade-in.

Why Lease Now?

As July nears its end, now is the best time to lease! As a rule, the best time to lease a car is at the end of the month. July is especially ideal too because most new vehicles are released from July through October. The benefit of leasing a car when it’s brand new is that you can take advantage of its peak residual value. A high residual value means that the car will maintain the majority of its value when you are ready to return. Higher residual also means lower depreciation, meaning lower monthly payments for you.

If you are thinking about getting a new vehicle, consider leasing as an option. Read more about the benefits of leasing vs buying a car.

Call D&M Auto Leasing for a free quote today!

How to Calculate Car Lease Payments

chris on July 22, 2016

Hunting for a great car lease deal is inconvenient and exhausting. Even if you’ve contacted multiple vehicle leasing companies, it’s difficult to identify a fair quote without knowing what goes into determining that number. That’s why D&M Leasing has simplified the process for you.

Estimate Your Lease Payment

All you need to calculate your car lease is a few simple details about the car you want and current interest rates.

You Will Need:

  1. The MSRP: What is the car listed at? The manufacturer’s suggested retail price (MSRP) is the standard dollar amount that the vehicle is worth when brand new.
  2. The Money Factor: The money factor is how your interest rate is calculated. It is used as an alternate way of expressing the annual percentage rate (APR). On average, the money factor is 0.00125.
  3. Lease term: The standard lease term is 36 months. Other car leasing companies may offer longer lease terms, but it’s not recommended since you will pay for more depreciation.
  4. Residual: The best way to find out the residual value is by either calling the dealership, or looking it up online through a vehicle valuation company such as Kelley Blue Book®. Residuals for 36-month lease terms are typically between 45 and 60 percent.

Calculate Your Lease Estimate

The average cost of a new vehicle is about $33,000, so we will use it as the MSRP to show you how lease estimates are calculated. Residual Values are usually between 45 and 60 percent. We’ll use the lowest residual value in our example. This serves as an example of a car lease quote without any negotiated costs or specials.

  • Multiply the MSRP by the Residual Value (Percentage).
    First, you need to determine the car’s worth at the end of the lease term.
    Equation:
    MSRP x Residual Value (percentage) = Residual Value (dollars)
    $33,000 x 0.45 = $14,850
  • Subtract the Residual Value (Dollars) from the MSRP.
    Since you’ve estimated residual value, next calculate the depreciation.
    The depreciation is the amount of car “use” you are paying for during your lease.
    Equation:
    MSRP – Residual Value (dollars) = Depreciation
    $33,000 – $14,850 = $18,150
  • Divide the Depreciation by the Lease Term
    Now that you have an estimate on how much your total cost of your lease will be, you can calculate your monthly payments.
    Equation:
    Depreciation ÷ Lease Term (Months) = Monthly Payment
    $18,150 ÷ 36 = $504
  • Calculate the Interest Rate
    You have your monthly car lease estimate now, but you will also have to pay monthly interest rates. Both car lease and loan payments have interest rates. The money factor is used in quantifying the interest rate.
    Equation:
    (MSRP + Residual Value) x Money Factor = Interest Rate
    ($33,000 + $14,850) x 0.00125 = $59.81
  • Add the Monthly Payment Estimate and Interest Rate
    Equation:
    Monthly Payment + Interest Rate = Total Payment
    $504 + $59.81 = $563.81

Keep in mind that the number you calculated is an estimate; local taxes and additional fees greatly affect car lease quotes. However, you now have a clear picture of a reasonable offer to compare with vehicle leasing companies. It’s also worth taking note that D&M Auto Leasing offers low, competitive interest rates, as well as real market residual values. Learn about our Leasing!

 

Is Auto Leasing Right For You?

chris on July 18, 2016

Drive a Nicer Vehicle

Buying typically limits you to more modest vehicles, preventing you from driving the vehicle you actually want. With leasing, luxury vehicles are capable of rates competitive to economy cars. Since luxury cars hold their value, their monthly rates can even be lower than more modest models. Leasing also allows you to take advantage of new car technology, and then upgrade to the latest innovation.

Drive a New Car Every 2-3 Years

Get more out of your car for less money. By leasing, you are driving the vehicle while it’s in its prime, and returning it before its use starts to show.

You may see not owning the vehicle at the end of the lease as a drawback. However, as the price of cars increase, people are financing them for increasingly longer. They do not realize that by doing so, they rarely own them outright.

No Down Payments

The title says it all, but most car lease deals require no money down. With D&M’s EZ Lease, you could lease with no down payment, and no payments for the first 60 days.

Lower monthly payments

You are only paying for the “use” of the vehicle, rather than the total value. The average lease is about 3 years long, while the average car loan takes 6.5 years to pay off, and is steadily increasing, resulting in interest rates far past the vehicle’s initial value.

Easy trade-in

Normal wear and tear is expected, so most car lease returns are as simple as turning in the keys.

Get a free, no hassle quote and find out is auto leasing is right for you!