48mo $23-$25
60mo $19-$21
As you can see, a longer term helps keep the payment in line if you’rerolling in a lot of inequity. On the other hand, it lowers the effectiveness of (^)
any down payment.
lease. TIP: If you’re really buried in a car, consider a 48-month^
This will help to swallow the inequity without making the payment largerthan necessary. By and large, you’re better sticking to the more common (^)
terms. And don’t assume a 48-month lease will be less expensive than a36-month one; it all comes down to what the lender and manufacturer are (^)
trying to promote on any given month.
RESIDUAL VALUE
The residual value on a closed-end lease is a set amount, figured out bythe manufacturer (or bank) and based on independent research from
companies like Automotive Lease Guide (ALG). The basic reason a leaseis less expensive per month than a purchase is that you are paying only the (^)
depreciation from the capital cost (sales price) to the residual value.