In today's market, many drivers are intrigued by the low monthly payments and hassle-free returns that come with leasing. But these benefits do come at the cost of vehicle ownership and equity that buyers with auto loans eventually hold. We'll explore what leasing entails from start to finish, with examples of common SUV lease deal terms.
How the Leasing Process Works
In a lease agreement, the leasing company or dealer purchases the car from the automaker and serves as the registered owner throughout the lease. You then make monthly payments to “rent” the vehicle for a predefined period, usually 24-48 months. Once the leasing period ends, you return the car unless you choose to buy it outright or negotiate another lease.
Here’s a step-by-step overview:
Determine the car model and trim level you wish to lease. Narrow down options at a dealership.
Negotiate the monthly payment, down payment (if any), and contract mileage with the dealer. Research average costs for your area first.
Inspect the lease contract thoroughly. Pay attention to fees, mileage limits, wear-and-tear guidelines, purchase option terms at lease-end.
Take delivery of your brand-new leased car! Remember scheduled maintenance requirements to avoid penalties.
Make your monthly payments on time. Stay within the defined mileage limits to avoid overage charges.
At lease maturity, return the car to the dealership unless you decide to purchase it outright or lease another vehicle.
What Does It Cost to Lease an SUV?
According to 2023 market data, the average monthly payment for a 2-year SUV lease is $450-550. Leasing a small SUV like the Hyundai Tucson costs around $350 per month, while midsize options like the Toyota RAV4 average $425. Larger SUVs like the Chevrolet Tahoe typically start around $600 per month.
Here are some SUV leasing costs and budget-friendly options:
2024 Hyundai Venue: $229/month for 36 months, $3,499 due at signing, MSRP $19,650 .
2023 Kia Soul: $219/month for 24 months, $2,799 due at signing, MSRP $21,215
2024 Hyundai Kona: $232/month for 36 months, $4,012 due at signing, MSRP $25,435
2024 Honda HR-V: $259/month for 36 months, $3,199 due at signing, MSRP $24,100
2024 Buick Envista: $179/month for 24 months, $4,319 due at signing, MSRP $25,880
Conclusion
Key factors impacting SUV lease pricing include the vehicle MSRP, residual value, money factor rates, down payment, and lease term length. You can negotiate some of these elements to try to lower your monthly payment. Be sure to also consider insurance, fuel costs, and maintenance visits when budgeting for an SUV lease. Carefully weighing the pros and cons versus your financial situation will determine if leasing makes sense or if purchasing is better aligned with your needs.
