How to Lease a Car
Posted on July 16th, 2009 by Carmelia
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Leasing a car is an attractive alternative to buying a car for many people for a couple of reasons. One reason is that getting a leased car is getting a better car for less money than what you would’ve actually spent if you bought the same car. Another reason is that you get to drive newer cars, newer models with a warranty, without ever having to do anything more to it than routine maintenance. Sound attractive now? Just make sure you’re dealing with an authorized leased car dealer. Here’s how you can lease a car.
Make Calculations
Leasing a car will need some basic math. The reason why most people lease a car is to garner some savings, and it would mean nothing if you end up spending as much as if you had bought the car. Here are the steps to calculate.
- It would be best if you narrow down your car model choices to at most, three. This will make calculating easier and less confusing.
- Inquire about the initial down payment (the better your credit record, the lower your down payment), and extra fees.
- Inquire about the monthly payment.
- Inquire about possible additional fees
- Inquire how long the lease will last.
- Inquire if there will be possible additional charges at the end of the lease.
Add up all the payments and compare them to the overall price of buying a car of the same model. If the price difference is substantial, then you are ensured savings. However, if the difference is minimal, you may want to consider buying the same model instead.
Don’t forget to compare the lease fees with other dealerships.
If you want to be really specific, you may also want to to inquire about the age of the car, and calculate the depreciation of the car’s value. You can compute this alongside the price of a secondhand car of the same model, and if the price difference is minimal, then you should consider buying a secondhand car instead.
Lease Terms
Lease terms also constitute an important part in the deal. Look for reasonable and specific lease terms. For example, what constitutes “excessive wear and tear”? Ask about gap insurance, which are lease terms regarding insurance should the car be totaled or stolen. Make sure that what can and cannot be installed in the vehicle after leasing is specified in the lease terms.
Don’t be afraid to go through the lease terms with your dealer. Once you’re satisfied, sign the terms and make the initial payments. Don’t forget to get insurance for the car.
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