If you are one of the millions of Americans who leased a new vehicle in 2016, expect a substantial markup if you’re in the market for another lease this year. According to Edmunds, consumers will pay an average of $1,600 more over the life of their lease in 2019 compared with 2016 (leases typically last three years).
The cost is rising for three reasons: New vehicles cost more than they did three years ago; auto-loan interest rates, which are used to calculate lease payments, are at a 10-year high; and resale values have fallen, which inflates the total price you pay over the life of the lease.
If you’re reluctant to pay more to lease a car but want a reasonable monthly payment with some protection against ponying up for unexpected repairs, consider buying a certified pre-owned, or CPO, vehicle. These vehicles have been thoroughly inspected and carry a manufacturer-backed warranty that may offer one-year comprehensive coverage and extend the powertrain warranty to 100,000 miles. Leases have a provision that allows you to buy out the lease. Compare what you’d pay to buy your leased vehicle with the selling price of a CPO vehicle.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of Kiplinger’s expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of Kiplinger’s expert advice - straight to your e-mail.
-
-
Watching Your Energy Bills? Smart Meters vs Regular Meters
Some people like seeing how much energy they use, but not everyone likes smart meters.
-
Black Friday Store Hours Still Early at Some Retailers
Miss kicking it old-school by shopping at the crack of dawn on Black Friday? These stores are opening their doors early.
-
The Best Cashback Credit Cards
Smart Buying Not interested in miles, points or other perks from your credit card? If you want money back, with a minimum of games, these cashback cards are the way to go.
-
I-Bond Rate Is 6.89% for Next Six Months
Investing for Income If you missed out on the opportunity to buy I-bonds at their recent high, don’t despair. The new rate is still good, and even has a little sweetener built in.
-
What Are I-Bonds?
savings bonds Inflation has made Series I savings bonds enormously popular with risk-averse investors. So how do they work?
-
Car Buying in a Topsy-Turvy Market
You need a new car? Good luck with that! What should you do? We've got some answers.
-
Your Guide to Open Enrollment 2023
Employee Benefits Health care costs continue to climb, but subsidies will make some plans more affordable.
-
Watch Out for Flood-Damaged Cars from Hurricane Ian
Buying & Leasing a Car In the wake of Hurricane Ian, more flood-damaged cars may hit the market. Car prices may rise further because of increased demand as well.
-
What You Need to Know About Life Insurance Settlements
life insurance If your life insurance payments don’t seem worth it anymore, consider these options for keeping the value.
-
The Best Travel Rewards Credit Cards
credit cards Business road warriors and leisure travelers alike can use a travel reward card to turn miles logged into other things – including more travel.
