Leasing is becoming an increasingly popular option for drivers; as of 2020, around 25% of vehicles in the United States are leased. As leasing becomes more common, you may want to look into it in your state.

Considering if leasing in Connecticut is right for you?

Jerry

can break it all down for you.

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Reasons to lease a car in Connecticut

78% of Connecticut residents drive solo in their own cars to work each day for an average of 26 minutes, which is on par with the national average.

While

buying and financing

are certainly more popular choices for those who want to own a car, leasing is gaining steam among drivers—and for good reason. Leasing gives you all the advantages of driving a newer, reliable car at a lower monthly cost.

Just like with apartments, leasing a car is a long-term rental agreement, and it’s a reasonable option for those who don’t want to deal with car ownership.

Of course, every option comes with its pros and cons. Here are a few benefits to leasing a car.

Flexibility

If you don’t have the cash to pay for a vehicle upfront, you’ll likely have to finance it. Auto financing typically includes a hefty down payment as well as sizable monthly payments, keeping you in debt for years to come.

A lease, however, gives you the power to choose the terms and length of your rental agreement. You pay the monthly bill and get the car as long as you want, then once your lease is up, you’re free. No debt or used car to deal with.

Lower monthly cost

Bestplaces.net

reports that Connecticut’s cost of living is higher than the U.S. average. The bulk of that cost is housing and utilities, but a significant chunk is transportation costs.

In most cases, a monthly car lease payment is cheaper than a car loan payment. A car lease could also include maintenance costs or other benefits, depending on your specific lease agreement. These lower rates are great opportunities to lighten the load on your bank account.

No loss on depreciation

Everyone knows: your new car starts losing its value the second you drive it off the lot. And if you’ll be paying on your car loan for a while, your vehicle will have little to no value once you finally own it. When you lease, though, worrying about depreciation is a thing of the past since you’re paying to use the vehicle at its peak value—and you won’t be held accountable for what happens afterward.

Key Takeaway: Leasing allows you to pay lower monthly payments to drive a car that works best for you.

MORE:

How to calculate a car lease payment

What to look for when leasing a car in Connecticut

If you’re a leasing novice, it’s key to have an in-depth understanding of the process before you dive in. Here are the most crucial parts to know throughout the leasing process.

As with regular auto financing, leasing a vehicle requires an upfront payment with monthly payments during the lease term. Instead of paying off a loan, though, you’re paying for the vehicle’s lost value over the duration of your lease.

In a closed-end lease, when your lease term ends, you’ll return the car and be free of all responsibilities. Dealers will usually offer the option to sign a lease where you can purchase the car when the lease term ends.

Before you head to the dealership, be aware of the lease’s exact terms, because most of the terms are negotiable. Here are a few terms (and red flags) to pay attention to.

Terms to know

Capitalized cost: “Cap cost” refers to the amount of money your monthly payments will be based on. This could be the manufacturer’s suggested retail price (MSRP), but it’ll go up with lease add-ons like service contracts, registration fees, warranties, and insurance. Negotiating a lower cap will lower your monthly payments.

Money factor: This is the interest rate you’ll have to pay on your lease, which typically falls between 0.0021 and 0.0046. To calculate the interest rate, multiply the money factor by 2,400; you’ll want this to be as low as possible to keep your payments as low as possible.

Mileage cap: Many dealers put a yearly mileage limit in the lease agreement, so be sure to take note. If you go over your limit, you’ll be hit with extra fees.

Red flags to watch for

Don’t rush into a lease agreement—make sure you find what works best for you and that you get everything in writing before signing. Be wary of any dealer that:

Pressures you to sign a lease on your first visit

Wants to talk monthly payments without negotiating the cap cost or money factor

Adds on excessive fees and expenses to your cap cost

How much should I expect to pay?

Statista

cites that in the final quarter of 2020, the average monthly lease payment was $460, so try to shoot for a monthly payment around that amount. Your total car expenses should fall at or below 20% of your monthly income.

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How to find affordable insurance for a leased car

Whether or not you decide to lease, you’ll have to have car insurance either way—and the quickest option isn’t always the best option.

When you use

Jerry

to shop for car insurance, you can see over 50 options in under 50 seconds. As a licensed broker, Jerry not only gives you access to the best rates out there, but Jerry takes care of any paperwork involved when you sign up for a new policy.

Leasing isn’t the only thing that can save drivers hundreds of dollars per year—the average Jerry user saves $887 on annual car insurance!

“I would 11/10 recommend
Jerry
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FAQs

How long is the average lease term?

The average car lease term is 36 months, or three years. Take your specific needs into account—like how often you drive and whether you expect your finances to change—when choosing the best lease term for you.

Is leasing a car a good idea?

Leasing can be a good way to make your car expenses more affordable, but it’s not the best fit for everyone. If owning your car is important to you, leasing is likely not the greatest idea and you’d be better off buying a used car.

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