Lease payments becoming even more attractive


It’s the decision consumers who acquire a new vehicle must make in order to have a payment that fits their budget. Stretch the traditional installment contract out to nearly 72 months or take on a lease for about half of that time.

Perhaps what’s good news for dealership customers and their used-car managers, reiterated that roughly one in three new models roll over the curb attached to a lease. The site gave an example of a Volkswagen Passat 1.8T S to highlight the payment differential and how the vehicle could return as a prime candidate for certified pre-owned unit. noted that if a consumer leased that vehicle, the individual would be looking at a payment of $149 per month for 36 months. With a 60-month installment contract, the payment would be $360.94 each month. Even at 72 months, the buyer would pay $308.16 monthly, presuming the APR would be approximately 3.5 percent to 3.75 percent.

“Leasing has always been known as an alternate form of financing where you typically get to drive more of the vehicle for your dollar, especially in luxury transactions,” said Scot Hall, executive vice president of

“However, we’re seeing this gap widen further as a result of increasing MSRP, and as such the gap in payment affordability is noticeable even on many of today’s most popular cars and trucks, not just luxury,” Hall continued.

With Hall's point in mind, examined the payment differential for a lease versus traditional retail financing for several other models you might already have in your inventory.

Lease Payments Versus Vehicle Installment Contract Payments
Make/Model Lease Term Miles Per Year Payment Estimated
Sales Price
60-Month Installment
Contract at 3.50% APR
72-Month Installment
Contract at 3.75% APR
 Toyota Corolla SE  36 months  12,000  $199.00  $16,566.00  $301.36  $257.30
 Volkswagen Jetta S  36 months  12,000  $109.00  $15,826.00  $287.90  $245.80
 Mercedes-Benz C-300 4MATIC  27 months  10,000  $399.00  $36,057.00  $655.94  $560.02
 Volkswagen Passat 1.8T S  36 months  12,000  $149.00  $19,841.00  $360.94  $308.16
 Toyota  Avalon XLE  36 months  12,000  $249.00  $29,286.00  $532.76  $454.86
 Mercedes-Benz E300 4MATIC  27 months  10,000  $589.00  $49,605.00  $902.40  $770.44
 Toyota Tacoma PreRunner Double Cab 4x2  24 months  12,000  $319.00  $22,626.00  $411.61  $351.42
 Toyota Tundra SR5 V8 Double Cab 4x2  36 months  12,000  $389.00  $28,029.00  $509.90  $435.33
 Toyota RAV4 LE FWD  36 months  12,000  $199.00  $21,681.00  $394.42  $336.74
 Toyota 4Runner SR5 V6 4x2  24 months  12,000  $299.00  $29,211.00  $531.40  $453.69
 Nissan Armada SL 4x4  39 months  12,000  $599.00  $37,151.00  $675.84  $577.01
 Acura MDX FWD  36 months  10,000  $409.00  $40,766.00  $741.60  $633.16






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