How to spot a good car lease
 
How to spot a good car lease

Leasing has been lauded as your cheapest ticket to keep up with the
industry's hottest vehicles and trends. The jury, however, is still out
on leasing: with the industry long on hype and short on detail, it is
difficult to distinguish between a genuinely good deal and a downright
up-selling exercise.

So how do you spot a good deal?

First, you need to find out if there are any down payments on the lease. A
down payment refers to the lump sum amount that you pay upfront, either in
cash, non-cash credit or trading allowance, to reduce your monthly payment.
You should think twice before putting money down on a lease: not only are
you getting a rough deal, as you're essentially forfeiting the general rule
of leasing: not putting any cash upfront, but the money is not recoupable
at the end of your lease. There is another big disadvantage: in the event
of your car getting damaged or stolen, you insurance and the gap cost will
not cover the loss.

Mileage Limit

Most leasing companies allow you a limit of 45,000 free miles over the
length of a 3-year lease. This may seem like a good deal at first sight,
but when you consider it only comes to 15,000 miles over a 12 month period
it's not difficult to foresee why it might be difficult to stay within this
limit. Even people working from home have little trouble putting 15,000
miles on their cars.
If you exceed the mileage limit, the penalty for each excess mile can be as
high as 20 cents. This can add up quickly over the length of your lease: an
additional 4,000 miles a year over the length of a 3-years lease contract,
will end up costing you an extra $2,400 in excess mileage charges!
Be realistic about your mileage needs, especially if you have to regularly
commute over long-distances, before you sign the contract. Consider padding
the miles that you expect to use since it is less expensive to contract for
the extra before you sign than it is to pay the extra charges at end of
your lease.

Sales Tax

Sales tax is usually capitalized and added to the monthly payments.
However, some dealers choose not to include it in their calculations to
drive the advertised lease payments even lower. What they do instead is
state in the small print that the monthly payment excludes "sales tax".
Make sure you carefully read the fine print for any extra, hidden costs not
included in the advertised monthly payment. Unscrupulous fees that
typically slip through the cracks include sales tax, registration and title
fees.

(Word count: 440)

Search
Recommended Resources
Auto Insurance and Leasing When leasing a car, it's easier to stick with the same company for your auto insurance. ...
read more

Auto Leasing Scams Car-leasing has been lauded as a more attractive alternative to buying, offering in the process the flexibility ...
read more

Benefits of leasing Despite aggressive low-interest financing, cash-back offers and other purchasing incentives offered by leading auto-makers to buyers, leasing ...
read more

Buy a car at the end of your lease You've come to the end of your lease and you like ...
read more

Buy or Lease? It's the classic dilemma that faces every auto-consumer out there: Pay cash upfront or forego the ownership ...
read more

Dealer Leasing Tricks Too often when it comes to auto-leasing, people get so dazzled by the myriad terms and the ...
read more

Fees involved in leasing Mention auto-leasing and most people will automatically assume a low- monthly payment. There is actually more ...
read more

Go green and save on your lease Hybrid vehicles' popularity has sharply grown from a couple of thousands in early ...
read more

How to avoid extra costs at the end of your lease $250 to dispose of your vehicle, $1000 for extra ...
read more

How to calculate your lease payment Understanding how to calculate your monthly lease payment makes it easier for you to ...
read more

How to get out of a lease before your contract expires When your lease is up, you can simply turn ...
read more

How to lease a new car? Whether you lease a car to get into the latest models or have better ...
read more

How to spot a good car lease Leasing has been lauded as your cheapest ticket to keep up with the ...
read more

Independent Car lease companies To lease, you have two possible choices: either lease through a dealer's finance source or through ...
read more

Lease Financing For auto-consumers, crunching the numbers is one of the most difficult and confusing aspects of leasing. Take the ...
read more

Lease Trading Ever wanted to terminate your lease early, comfortable with the thought you weren't going to be hit with ...
read more

Leasing and your credit score. Your credit score is part of the leasing decision. When you apply for a lease, ...
read more

Leasing Glossary In order to get a good leasing deal, you need to understand leasing jargon. Read through this leasing ...
read more

Leasing used cars explained Leasing a used vehicle can be an attractive deal in many ways, no least getting you ...
read more

Leasing with bad credit Have you been refused a car lease? Chances are you have less flawed credit history. Know ...
read more

Luxury Cars and Resale Values When it comes to ultra-luxury, high-end vehicle leasing, there is no doubt that the best ...
read more

Single-Payment Lease A prepaid lease is a new type of lease which has made its foray into the market in ...
read more

The residual value of leasing If you are in the market to lease a vehicle, you will hear the term ...
read more

Using lease calculators Want to calculate your monthly lease payment? Consider using a lease calculator If you are considering a ...
read more

Main Menu
Home
Sitemap



Articles
Auto Insurance and Leasing

Auto Leasing Scams

Benefits of leasing

Buy a car at the end of your lease

Buy or Lease?

Dealer Leasing Tricks

Fees involved in leasing

Go green and save on your lease

How to avoid extra costs at the end of your lease

How to calculate your lease payment

How to get out of a lease before your contract expires

How to lease a new car?

How to spot a good car lease

Independent Car lease companies

Lease Financing

Lease Trading

Leasing and your credit score

Leasing Glossary

Leasing used cars explained

Leasing with bad credit

Luxury Cars and Resale Values

Single-Payment Lease

The residual value of leasing

Using lease calculators

 

Disclaimer: The Publisher has strived to be as accurate and complete as possible in the creation of this website, notwithstanding the fact that he does not warrant or represent at any time that the contents within are accurate due to the rapidly changing nature of the Internet.

This site is a common sense guide to How to spot a good car lease. In practical advice websites, like anything else in life, there are no guarantees of income made. Readers are cautioned to reply on their own judgment about their individual circumstances to act accordingly.

This site is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek services of competent professionals in legal, business, accounting, and finance field.

Any perceived slights of specific people or organizations are unintentional.

Home| Sitemap|Budget Hosting

7.my © All Rights Reserved.