Leasing is the cheapest ticket to keep up with the industry's hottest vehicles and trends. However, it is difficult to distinguish between a genuinely good deal and a downright up-selling one. This article will help you to spot a good car lease and will teach the most important things you need to take in consideration when you decide you want to lease a car.
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.
The general rule of leasing is not putting money upfront, so you need to think twice before paying a down payment. Though a down payment will essentially reduce the monthly payments, you won't recuperate the money at the end of the lease. Another disadvantage when you put a down payment is that if your car gets stolen or damaged, the insurance cost will not cover the loss.
Once the down payment issue is cleared, you need to read the lease, including the fine print. Look for the sales tax, which 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. You might find some other fees that typically slip through the cracks, like registration and title fees.
Another important step is to check the mileage policy. Most leasing companies allow 45,000 free miles for 3 years, and if you exceed this number you pay additional for each mile. Think about your mileage needs before you sign any contract, as you might end up paying a lot of money for extra mileage. Besides, 45,000 miles for 3 years means 15,000 per year, which is not a lot of miles, especially if you need to drive a bit every day.
The best thing to do when estimating your mileage needs is to round it up, this way you won't be in the situation to pay extra at the end of your lease.
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.
The general rule of leasing is not putting money upfront, so you need to think twice before paying a down payment. Though a down payment will essentially reduce the monthly payments, you won't recuperate the money at the end of the lease. Another disadvantage when you put a down payment is that if your car gets stolen or damaged, the insurance cost will not cover the loss.
Once the down payment issue is cleared, you need to read the lease, including the fine print. Look for the sales tax, which 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. You might find some other fees that typically slip through the cracks, like registration and title fees.
Another important step is to check the mileage policy. Most leasing companies allow 45,000 free miles for 3 years, and if you exceed this number you pay additional for each mile. Think about your mileage needs before you sign any contract, as you might end up paying a lot of money for extra mileage. Besides, 45,000 miles for 3 years means 15,000 per year, which is not a lot of miles, especially if you need to drive a bit every day.
The best thing to do when estimating your mileage needs is to round it up, this way you won't be in the situation to pay extra at the end of your lease.
About the Author:
Get useful information about DIY car scratch repair and various car upgrades by visiting car-scratch-repair.net.. Unique version for reprint here: How To Find A Good Car Lease.
