Lease Guidelines and Tips
you are looking to get a car using an auto lease consider
some of the following tips and guidelines. You should
shop around and compare different leasing terms and
read the fine print. There are horror stories about
lease agreements that end up costing people a ton
of money. Usually it's because they did not carefully
read and understand the lease agreement.
are some key guidelines to consider when when shopping
around for the best auto lease that fits your life:
is the lease term? They usually range anywhere
from 24 to 60 months. Remember, that the longer
the lease term, the lower your payments, BUT you
will end up paying more because of the longer term.
the lease a "closed end" lease or an "open
A closed end lease means you can return your car at
the end of the term. You will not be purchasing the
car. Typically the monthly payments ar higher with
this type of an auto lease. An opened ended lease
stipulates that you will pay the difference between
what is called the residual value and the fair market
value. The residual value is a definate amount that
is listed in your lease agreement. The fair market
value is not known. It may be more or less. If the
residual value is greater than the fair market value,
you have to pay the difference. You don't know what
you may end up having to pay.
you do want buy the car at the end of the lease term...negotiate!
If the leasing company has to take the car back from
you, they will have to probably auction the car off.
They aren't going to get anywhere near the amount
you can purchase the car for. Their incentive is for
you to buy the car becaue otherwise they will ahve
to pay auction fees and get a lower price than what
you would pay.
you are turning the car in at the end of your lease,
make sure it is in pristine condition. This
means you should: Take the car in for regular service,
keep your service paperwork, fix any dents or scratches,
and before you turn it in, get it washed & detailed.
This will hopefully lower your any potential fees
the leasing company will try to charge you for.
you are picking out your potential car or truck, try
to pick one with a higher residual value.
You want a vehicle that keeps its value, or even stays
above the expected fair market value at the end of
your auto lease term. For example, a Toyata Camry
holds it's value better than a Ford Taurus.
out the mileage allowance for the lease.
If its less than the expected mileage that you think
you will put on your vehicle, it can get pretty expensive.
You don't want to get stuck in a contract that has
you paying 10-15 cents a mile after you go over the
out the cost of gap insurance. This is insurance
that covers the difference between what you owe on
your vehicle and what it is worth. If you crash the
car or it is stolen, gap insurance will cover you
if the amount you owe is greater than the amount the
vehicle is worth.
the most important tip! Read, read and re-read
everything in the lease agreement and make sure you
understand everything in it. There are a ton of terms
that you might need clarification on that you should
research if you don't understand their meanings. Type
them into Google so you understand the contract that
you are signing!
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