The decision to lease a car depends on the need of the person signing the lease. Leasing offers the flexibility of lower monthly payments and turning the car in at the end of the lease term. Individuals deciding to keep the car have the option of purchasing the car at the end of the lease term.
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The car's residual value is a major factor in determining the car's monthly payments. The residual value is the car's value at the end of the leasing term. Cars with the highest residual values are the cheapest to lease because they have the lowest monthly payments. Certain cars like Honda and luxury cars have higher residual values than domestic cars such as Fords. As a result, it is cheaper to lease the Honda. Cars with longer lease terms have lower residual values. Shorten the lease to increase the residual value. Look for a leasing company offering a promotional deal to accompany the high residual value. The Automotive Lease Guide and Blackbook are useful resources when researching residual values. The books are only a guide, because leasing companies and manufacturers set their own residual values. An auto's lease residual value is set as a percentage of the manufacturer's suggested retail price. Manufacturers, such as Ford Motor Company and GMAC, generally set the residual value on their vehicles higher than others in the industry.
Shop around for the best deal before making a lease decision. Contact local dealers and ask for bids. Ask dealers to beat other bids. Estimate the cost of a lease before going to a car lot. Emounds recommends asking a car dealer to use the True Market Value of the car to negotiate a lease. The True Market Value is the lowest sales price of a vehicle. If your estimation matches the dealer's estimation, the leasing offer is a fair deal. Double-check to ensure the terms and conditions on both estimations match. Negotiate the down payment and the annual mileage allowance. Zero down payment options are best. Use a trade-in vehicle to lower the cost of the lease. Before trading in a vehicle, know the value of the trade-in.
Taking over an already leased car saves money. Many times, people in life changing situations such as a financial bind look for others to take over their car lease. A lease takeover allows a person to get a car lease for a shorter amount of time without the down payment. Websites such as Swapalease act as a forum that bring buyers and sellers together. Before assuming someone's car lease, check the lease-end purchase price, the remaining mileage and inspect the car. Some individuals offer a cash incentive to those who take over the lease.
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