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.
A leased car is generally less expensive than buying a new one. Of course, the term lease means that you'll eventually return it to the bank or wherever it was leased. Still, most lease contracts last two or three years, giving you enough time to save up in case you decide to buy 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.
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.
You should also take note of the cost of residual percentage, which refers to the residual value of the car once the lease is up. If this value, usually listed as a percentage, is high, that means that the amount of depreciation you have to pay is lower, which translates to lower monthly payments. One other value to take note of is the residual amount, which is the amount that you still need to pay in case you decide to purchase the car once the term ends.
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.
When looking for the best deal, don't just focus on the least expensive car. You need to look at two factors - which requires the lowest out-of-pocket amount and the lowest monthly payment. When requesting for a quote, don't just settle for one. Ask for quotes from different locations, and request that the quote include taxes, registration, and other fees.
A leased car is generally less expensive than buying a new one. Of course, the term lease means that you'll eventually return it to the bank or wherever it was leased. Still, most lease contracts last two or three years, giving you enough time to save up in case you decide to buy 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.
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.
You should also take note of the cost of residual percentage, which refers to the residual value of the car once the lease is up. If this value, usually listed as a percentage, is high, that means that the amount of depreciation you have to pay is lower, which translates to lower monthly payments. One other value to take note of is the residual amount, which is the amount that you still need to pay in case you decide to purchase the car once the term ends.
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.
When looking for the best deal, don't just focus on the least expensive car. You need to look at two factors - which requires the lowest out-of-pocket amount and the lowest monthly payment. When requesting for a quote, don't just settle for one. Ask for quotes from different locations, and request that the quote include taxes, registration, and other 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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