Best Car Lease Deals for Feb 2009

Several good car lease deals were available in February despite the fact that many car-makers have pulled back on their end-of-year clearance programs. Our favorite lease program in the fall was Volkswagen's "Sign Then Drive" event, which offered low lease rates and $0 due at signing on VW's most popular models.

As a general rule, you're more likely to find attractive leases on a car-maker's more sought-after models - and that's good news for most buyers.

It may seem strange that dealers offer more attractive lease deals on their better-selling models, but there is a good reason. If you're a dealer, offering a lease is a risk. The dealer bets that when the lease is up and a customer returns the vehicle, it will still be worth a lot of money and the dealer can resell it for a total net profit. But if the car depreciates fast, which is more likely on poor-selling models, the dealer or car-maker could lose money because it can't sell the off-lease car for much money. This is partly why Chrysler disbanded its leasing program in July of last year - its cars depreciated so fast that leasing became a money-loser.

So who is still offering great lease programs now?

Volkswagen. Despite ending the Sign Then Drive program, Volkswagen is still offering good lease terms. Three of its fuel-efficient, small cars - Jetta, New Beetle and Rabbit - can each be yours for $199/mo + $1,999 at signing for a 36-month lease. When VW offered no-money-down leases under the Sign Then Drive event, these cars leased for $269/mo. So even though the current program requires you to cough up $1,999 up front, you actually save several hundred dollars in total lease costs because of the lower monthly payments, compared to the no-money-down offer.

Lincoln. If you're looking for a little more luxury or an American nameplate, Lincoln is offering a no money down deal through the end of March. Available on both the Lincoln MKX and MKS, the deal is no down payment (after cash back) no first month's payment and no cash due at signing. The lease rates for the deal are $529 per month for 39 months on the MKS and $99 per month for 39 months on the MKX. Taxes, title and tags are extra, but in this market you may be able to negotiate that.

Toyota. Toyota runs all of its specials by region. Lease offers in Florida could vary greatly from offers in Chicago, so you need to check with local Toyota dealers to see what they'll offer you. See below for the best deals.

Honda. Honda has several great national lease offers running through early March, as shown below. There may be even better regional offers, so be sure to contact local Honda dealers for the best deals.

Hyundai. If you buy or lease a new Hyundai before Feb 28, the newly announce Hyundai Assurance Program will allow you to return the car to Hyundai with no further financial obligation if you lose your job. While gimmicky, this is a great way to get some worst-case scenario protection from a company that is still offering decent lease rates. There are stipulations, so be sure to check out the Hyundai Assurance program's website for more details.

Nissan. A few good lease offers remain, and Nissan is one of the few carmakers offering solid lease terms on SUVs - with special deals on both the Rogue and Murano.

Source: http://usnews.rankingsandreviews.com/cars-trucks/Car-Lease-Deals/

Just three questions to ask on car leasing vs. buying

1. Have you crunched the numbers?

Not sure whether you want to commit to the car for a long term? Break out the calculator. Use BankingMyWay's (Mainstreet's partner site) lease vs. buy calculator to crunch the numbers for you. If keeping your monthly payments down is most important to you, know that the short-term monthly cost of leasing is usually less than the cost of buying. (On average, monthly lease payments are 30% to 60% lower than loan payments for the same car, same down payment, etc.). This holds true even when compared to 0% or low-interest loans. Plus, in an ownership arrangement, auto dealers will likely require more money down than with a lease deal.

2. How important is ownership to you?

When you buy a new car, you pay for everything, including its upfront value, plus finance charges, plus fees. In return you get equity, which is essentially the car’s resale value, or what you can expect to get back if you sell it or trade it in. And when you finish making payments, you’ll be free and clear. But is a long-term equity deal a good one? After all, the longer you own and drive a vehicle, the less equity you have. When you’re leasing, you’re only buying the time you will use the car, meaning the amount it will depreciate in the time that you drive it. That keeps monthly payments down, but leaves you with no equity at the end of your contract.

3. What about repairs?

When you lease a car, you’re not really the owner. But when it comes to car maintenance and repairs, not being the owner can be a good thing. By and large, any type of repair will be covered under your manufacturer's warranty. (And your car’s always almost brand new, so the risk of something going really wrong is rather low.) Car owners, on the other hand, have a vested interest in car care and maintenance. That can include keeping on top of oil changes and brake pads replacements as well as keeping the body scratch- and dent-free. Leasers as a rule find themselves less concerned with the details, since it’s not going to be their problem down the road.

Also, when leasing, be aware of additional fees (including security deposits and any lease-end charges) so they don’t take you by surprise. Expect to make your first monthly payment when you sign your contract.

When it comes to buying or leasing a car, there is no right answer. Buying and leasing both have their pros and cons, so the key is to look hard at your own situation and preferences before you sign a contract.