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.
Companies and banks that offer leases usually need lower down payment and has lower monthly rates. In addition, you get a brand-new car for less than what it should have been paid for. Also, since you only have the vehicle for a short time, expenses for maintenance are lower, since you should have already returned it prior to major maintenance or tune-up requirements.
A leased car is a good choice if you want to keep up with the trend in new cars. At the end of your term, you simply drop off the car and get the next one on lease. Of course, this assumes that the previously leased vehicle doesn't have any damages or excess mileages that would incur extra charges. Still, in the long run, it should still be cheaper than managing and owning a couple of cars.
When signing a lease, take note of the allotted miles and charges for over-mileage. The lessor will stipulate an annual limit, which is usually between 12,000 and 15,000 miles. Additional mileages are charged per mile, which can be quite expensive when totaled. If you think that you will use up more than the allotted miles, you can add extra miles before signing the contract, which will still end up cheaper than the over-mileage fee. However, take note that if you fall in love with the car and want to buy it at the end of the lease period, then you don't need to pay any over-mileage fee.
Also take a look at the price of the residual percentage, which is what the car is worth once your lease term ends. A higher value in percentage means that the depreciation value you must pay for the car is lower, translating to a lower monthly payment. In relation, take a look at the residual amount, because this is what you need to pay the lessor should you decide to buy the car eventually.
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.
Companies and banks that offer leases usually need lower down payment and has lower monthly rates. In addition, you get a brand-new car for less than what it should have been paid for. Also, since you only have the vehicle for a short time, expenses for maintenance are lower, since you should have already returned it prior to major maintenance or tune-up requirements.
A leased car is a good choice if you want to keep up with the trend in new cars. At the end of your term, you simply drop off the car and get the next one on lease. Of course, this assumes that the previously leased vehicle doesn't have any damages or excess mileages that would incur extra charges. Still, in the long run, it should still be cheaper than managing and owning a couple of cars.
When signing a lease, take note of the allotted miles and charges for over-mileage. The lessor will stipulate an annual limit, which is usually between 12,000 and 15,000 miles. Additional mileages are charged per mile, which can be quite expensive when totaled. If you think that you will use up more than the allotted miles, you can add extra miles before signing the contract, which will still end up cheaper than the over-mileage fee. However, take note that if you fall in love with the car and want to buy it at the end of the lease period, then you don't need to pay any over-mileage fee.
Also take a look at the price of the residual percentage, which is what the car is worth once your lease term ends. A higher value in percentage means that the depreciation value you must pay for the car is lower, translating to a lower monthly payment. In relation, take a look at the residual amount, because this is what you need to pay the lessor should you decide to buy the car eventually.
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.
No comments:
Post a Comment