Being smart when it comes to purchases is very important. Year after year, the price of commodities go up due to inflation. Same goes with rent and mortgages. And then there's the importance of having transportation as you go from work or school, and home. If you'd like another option to save on money, then here's a helpful guide to leasing a car.
Leased cars normally cost less than new ones. The reason is that like a normal lease, you need to eventually return the vehicle to wherever you leased it from, like a bank. However, almost all lease contracts have two to three year terms, which gives you sufficient time to save money in the event you want a new car afterwards.
Banks and companies offering leases often require low down payment and monthly rates. Plus, you end up getting a new car for fewer money that you would have otherwise paid for. In addition, due to the short time you have the vehicle in your possession, you won't have to spend much money in maintenance, since you end up returning the leased vehicle before any major tune-ups or maintenance requirements are needed.
If you want to keep with the trend when it comes to having a car, a leased car may be a good option for you. Once the lease is up, and given the assumption that there are no excess mileages used or damages to it, you can simply drop it off and grab the next car on lease. It is relatively cheaper than maintaining a couple of cars in the long-term.
Before signing the lease contract, look at the allowable miles and any charges for over-mileage. Your lessor will indicate a limit per year, which should be 12,000 to 15,000 miles. Going beyond that will cost you per additional mile, which may be expensive once totaled. If you know that you'll definitely go beyond the limit, add additional miles to your contract. At the end of the year, it should still be cheaper than any over-mileage fee. Take note, though, that if you end up liking the car and decide to buy it after your lease, then there's no need to pay over-mileage charges.
Another thing to take note of is the car's residual value once your lease ends. This value is usually shown in percentage. A low value corresponds to a lower depreciation amount, which in turn, corresponds to lower monthly dues. While you're at it, look at the residual amount as well. This corresponds to what you will need to pay the lessor in the event that you decide you want to buy the vehicle after all.
Once you feel confident that you want a leased car, the next step is to shop for one. Online research is the quickest way to find the best lease deals. There are websites that collate and compare different offerings, or you can visit the website of your car maker of choice. Leased deals from car makers and usually less expensive than dealerships.
If your goal is the find the best deal, don't put focus on the cheapest car in the lot. Remember two important factors - which one has the least expensive out-of-pocket requirement, and which one has the cheapest monthly payment. As you start asking for quotes, don't limit yourself to one. Request for quotes from various options, and ask that the quote they provide contain registration, taxes, and any additional fees.
Leased cars normally cost less than new ones. The reason is that like a normal lease, you need to eventually return the vehicle to wherever you leased it from, like a bank. However, almost all lease contracts have two to three year terms, which gives you sufficient time to save money in the event you want a new car afterwards.
Banks and companies offering leases often require low down payment and monthly rates. Plus, you end up getting a new car for fewer money that you would have otherwise paid for. In addition, due to the short time you have the vehicle in your possession, you won't have to spend much money in maintenance, since you end up returning the leased vehicle before any major tune-ups or maintenance requirements are needed.
If you want to keep with the trend when it comes to having a car, a leased car may be a good option for you. Once the lease is up, and given the assumption that there are no excess mileages used or damages to it, you can simply drop it off and grab the next car on lease. It is relatively cheaper than maintaining a couple of cars in the long-term.
Before signing the lease contract, look at the allowable miles and any charges for over-mileage. Your lessor will indicate a limit per year, which should be 12,000 to 15,000 miles. Going beyond that will cost you per additional mile, which may be expensive once totaled. If you know that you'll definitely go beyond the limit, add additional miles to your contract. At the end of the year, it should still be cheaper than any over-mileage fee. Take note, though, that if you end up liking the car and decide to buy it after your lease, then there's no need to pay over-mileage charges.
Another thing to take note of is the car's residual value once your lease ends. This value is usually shown in percentage. A low value corresponds to a lower depreciation amount, which in turn, corresponds to lower monthly dues. While you're at it, look at the residual amount as well. This corresponds to what you will need to pay the lessor in the event that you decide you want to buy the vehicle after all.
Once you feel confident that you want a leased car, the next step is to shop for one. Online research is the quickest way to find the best lease deals. There are websites that collate and compare different offerings, or you can visit the website of your car maker of choice. Leased deals from car makers and usually less expensive than dealerships.
If your goal is the find the best deal, don't put focus on the cheapest car in the lot. Remember two important factors - which one has the least expensive out-of-pocket requirement, and which one has the cheapest monthly payment. As you start asking for quotes, don't limit yourself to one. Request for quotes from various options, and ask that the quote they provide contain registration, taxes, and any additional fees.
About the Author:
Check out our guide to leasing a car for a summary of the things to keep in mind when picking a car lease company at http://www.fightingchance.com now.
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