New car buyers browsing the market may be tempted by the seemingly low cost of leasing, and many drivers take advantage of leasing deals to get into the car of their dreams. Leasing is not a good fit for everyone, though, and certain drivers may find themselves regretting the day they signed the lease paperwork. But some can benefit from a car leasing arrangement if they keep a few important considerations in mind.
Pick the Right Car
In many ways, leasing a car is similar to financing a new car: The lease cost is broken into convenient monthly payments, and the buyer is required to maintain full-coverage insurance on the vehicle as long as it is under lease. Unlike a financed purchase, though, a leased car cannot be sold or traded if the driver begins to yearn for a new vehicle. Although some financing companies offer a short "lease forgiveness" period, most drivers of leased vehicles must stick with their cars until the lease period ends. (Depending on the terms of the lease, the driver may be able to transfer the lease to another driver, though this process is often complicated and involves numerous expensive transfer fees.)
Be Wary of Restrictions
Leasing a car is different from buying a car, as ownership of the vehicle is retained by the manufacturer. Because the person leasing the car does not actually own the vehicle, the manufacturer may place some restrictions on how, when and how much the vehicle may be used. Vehicle mileage is often restricted in lease arrangements, with drivers limited to around 12,000 to15,000 miles per year, as the lease holder will be able to sell the returned car for a higher price if it has low mileage. Any number of restrictions may be placed in a lease agreement; some leases prohibit smoking in the vehicle and operation of the vehicle by minors. In addition, most leases require comprehensive insurance coverage, and some require that liability be maintained at amounts higher than the state minimums.
Calculate Lease Payments
The cost of a lease takes in a myriad of different factors, including the cost of the car, the anticipated value at the end of the lease, maintenance and a number of other items specific to the vehicle's make and model. Because the payment calculations can be somewhat confusing, car shoppers should consider using an online lease payment estimator before heading to the dealership. Savvy shoppers may also call the sales department of several dealerships to compare lease payment estimates; the more estimates obtained, the more accurate the expectations. With an idea of the likely payment amount, shoppers can buy more confidently and easily identify potentially bad deals. Keep in mind, too, that the price of the vehicle is negotiable, and lease payments should be based on the lowest negotiated sales price.
Review the Lease Paperwork
After negotiating a sales price and lease agreement, the dealership require the signing of papers to initiate the lease. Any paper requiring a signature should be carefully reviewed before signing to ensure that all information is correct. Reputable dealers should include all negotiated options and the final price, though some less scrupulous dealerships may try to sneak in hidden fees, longer lease terms, added restrictions, and any number of other surprises that may make the lease experience less pleasant for the buyer. Only sign lease paperwork after verifying that all negotiated items are correct and no unexpected charges or expenses have been included.
0 comments:
Post a Comment