All About Interest Rates on Auto Leases

19 Jul

Leasing a car is simply a better option for some individuals. According to a recent study by Experian Automotive, leasing now accounts for over 27 percent of all new-vehicle transactions, a 12.5% increase over 2012 levels.

We Finance EveryoneWhether or not you are currently thinking of leasing a new vehicle, it’s valuable to understand the lingo and know what experts are predicting about interest rates.

Interest Rates and Leasing

When interest rates are high, leasing generally results in a lower payment. On the other hand, when interest rates are low, lease payments may be close to what you’d pay for a traditional auto loan.

Auto Interest Rate Forecast

Earlier this year, car analysts predicted low auto interest rates to continue throughout 2013. Fast forward to July and interest rates are starting to rise.

Moody’s Analytics predicts 10-year Treasury yields to rise from 2.44%, to 3.5% in 2014, meaning interest rates will follow suit. Since the U.S. economy is slowly starting to improve, higher rates around the board are expected.

Lease or Buy

As stated earlier, when interest rates start to rise, leasing options become more attractive to many individuals, especially car enthusiasts.

If you are used to monthly car payments and like to drive new cars on a regular basis, then leasing may be for you!

Talk to one of our car experts at Dodgeland of Columbia to help make the best auto financing decisions for you and your family.

Dodgeland of Columbia has you covered as the dealer you can trust. Owned by JT’s Cars, Dodgeland of Columbia has been serving the community for 20 years and has some of the highest customer satisfaction scores in the southeast. The Dodgeland Paint & Collision Center is I-CAR Gold Class certified, DRP (Direct Repair Program) and certified by most insurance companies. Even better, repair costs average 33% less than other dealerships and collision centers! Visit Dodgeland or any one of the JT’s dealerships today; we’re here to exceed your expectations.

Sources:

http://www.nwitimes.com/business/transportation/cars/unbeatable-deals-drive-new-car-leasing/article_1ea20fc3-f88f-556b-9c4b-627707fded4f.html

http://www.forbes.com/sites/nextavenue/2013/06/24/smart-money-moves-now-that-interest-rates-are-rising/3/

http://money.cnn.com/2013/01/01/autos/car-leases.moneymag/index.html

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