A lot of people opt for leasing a car than buying one. Leasing normally lets you drive a more high-end or a newer vehicle at lower monthly payments, as opposed to buying a car for the same down payment and price. Even in cases when you buy a car taking a low-interest loan, it is believed that leasing would tend to be relatively less costly in the short-term.
Leasing & Money Saving Tips
- Choose the right car model to suit your requirements. Some models could be more expensive for leasing. If you simply require a car for moving around, do not lease an expensive sleek Benz or BMW. Opt for a more casual sedan as it would be far cheaper, but would be serving your purpose. Also, do not lease a family sedan, if you intend to travel alone in your car. This way you could save some money.
- Never forget to compare and contrast leasing quotes from several reliable auto leasing firms. Do not automatically choose a firm that offers cheapest deals because they might be offering low quality service. Try finding the right balance between service and price.
- Look for hidden payments such as security deposit, first month payment, acquisition fees and capitalized cost while taking the down payment into account.
- Check if your leasing company offers return fees at the end of a lease. You must identify the circumstances when the return fee could be forfeited. Also, you need to find out what would be your responsibilities if the vehicle is damaged, while it is still in your possession.
- Choose a lease contract offering warranty on your leased car. This safeguards you from paying additional charges due to unforeseen circumstances.
- Get in touch with local insurance companies and stay updated on the insurance rates on your type of leased car. This helps you to understand if the leasing firm is overcharging you on your car insurance premiums.
Buyout & Save Money
Auto leases are generally set for between 2 to 4 years depending on the car type and your down payment. At the termination of your auto lease, you could be returning the car or purchasing it. You could get considerable savings if you opt for a buyout.
Car Model Important
The amount you would be saving by buying out your own auto lease would vary depending on the car type or model you are driving. For instance, if your leased car is very much in demand then even after few years of use, it could get a high resale price. In case you consider returning your lease and then trying to buy the same type of car in the open market, you are sure to spend more than what you would be paying for buying out your own leased car.
The quoted price by your car dealer for your lease buyout may not be the best possible deal. However, you should consider negotiating a much better deal. Dealers are eager to sell off their vehicles and remember it is definitely easier for them to sell your own leased vehicle to you than looking for a new buyer all over again. Remember this fact, while trying to gain leverage during the negotiation process.
Take Note of Equity
There would be occasions when it seems to be a good idea to opt for buying out your car lease even though you do not seem to be interested in buying and keeping the vehicle yourself. Equity is said to build in case your leased car is more expensive now than the buyout price that had been fixed by your car dealer. In such an event, you could consider buying out your auto lease and selling your leased car to someone else at a profit.
If you take care to follow the above tips, you could end up saving a considerable amount, while leasing a car.
Author Bio: Mathew Johnson is a leasing advisor in a reputed leasing company. He is an avid blogger and loves to share his expertise with everyone. He recommends reputed sites such as http://www.leasequit.com/ for comprehensive auto leasing solutions.