Why Have Lease Payments Increased?

Have your heart set on a new MINI lease? Concerned that the payments seem higher lately? We’re taking an inside look at MINI of Wesley Chapel.

The Perks of Leasing

We’re guessing the low prices of a lease is one of the things that persuaded you to consider a lease to begin with. It is certainly one of the major perks of leasing a vehicle. Leasing is almost always more affordable than financing, and they usually have lower maintenance and repair costs too.

Leasing also helps you easily stay in a new vehicle. Depending on the term you choose, you’ll typically be upgrading your vehicle every two or three years to a newer model with newer technology and a newer design. You can skip the hassle of selling too, you just need to return the vehicle to the dealership at the end of your lease.

The Cost of a Lease

When you first lease a vehicle, we start by looking at the cost of your vehicle. Then, we determine an estimate of its value at the end of your lease. The difference of the two, also known as your vehicle’s depreciation, is the cost of your lease.

The Increase in Lease Payments

As we mentioned, the cost of your lease is determined by looking at the vehicle’s current market value. Right now, vehicle prices have increased, due to the changes in the market. There have been so many disruptions in the supply chain due to the pandemic.

As manufacturers struggle to keep up with the demands in the market, they are being forced to raise their prices. Plus, they are limiting the incentives they put out, which also limits the deals available.

Contact our auto finance center serving Land o’ Lakes, FL to discuss your lease options today!