When buying a new car chances are that you will have to get an auto loan or lease to finalize the purchase. At LotPro.com you can compare auto loan and auto leasing with our simple to use car loan calculators. There is often a large difference in payments. Some cars have a better loan payment, while others vehicles have a lower lease payment, even if they have the same price. This happens because unlike auto loan companies, auto lease companies use the residual value when calculating the lease payment.
Simply put, the residual value is a factor that predicts the value of the vehicle at the end of the lease. New trucks (such as the Ford F150 and Ram 1500), Japanese sedans (such as the Honda Accord and Toyota Camry), and Nissan Altima German coupes (such as Audi TT and the BMW 3 Series) have a high residual value compares to domestic cars like the Ford Fiesta and the Chevrolet Cobalt.
In addition to the residual value, the lease payment can be reduced by new car incentives Many automobile manufacturers use incentives to reduce inventories. Most leasing incentive offered by the manufacturer only apply if you lease the vehicle through the dealership. So prior to signing a contract with a leasing company, credit union, or local bank, you should always compare their lease payment with the lease payment offered by the dealer where you plan on buying the new car.