Consider All Aspects Of Car Lease Before Leasing

Consider All Aspects Of Car Lease Before Leasing

August 24th, 1971 |

Author: admin

Availing of a car lease instead of taking a car loan to buy a car might seem to be a bright idea but there are many aspects of a car lease that you must check out before plunging into it. The various angles that you should investigate are:

Down Payments

The first aspect that you should look into is whether you need to make any down payment for the car lease. Normal leasing practices do not envisage any upfront payments and as such if you are being asked to make a down payment you should reconsider your decision. Moreover the money that you will pay upfront is nonrefundable when your car lease ends. You should also consider the fact that if the car gets damaged or stolen the loss and the gap cost will not be covered by your car insurance company.

Mileage Limits

Another important aspect of a car lease is that the leasing companies set a mileage limit of 45000 miles over a threeyear period and in case you exceed it you might have to pay an additional 20 cents for every excess mile. Most people find that 45000 miles for 3 years or 15000 miles per year is insufficient for the amount of travelling that they do. As such youll have to pay nearly 2400 in excess mileage on an average extra 4000 miles per year. If you do go in for leasing a car you should try to negotiate for the extra mileage at the time of taking the lease.

Sales Tax

Many dealers will try to hoodwink you in various ways. Its therefore essential to read the fine print before signing for a car lease. The dealer might advertise for the lease rates and monthly payments but he might not include sales tax registration or title fees. The fine print might reveal that these are excluded from the advertised rates but you would in any case have to pay for them if you take on the car lease. Its important to use a car loan calculator whenever you negotiate for a car lease or a car loan.

Damage Or Loss Of Car

If your car meets with an accident during the period of the lease youll have to pay for the repairs and other costs. This is a very important aspect that needs to be considered.

Car Leasing Or Buying

Many people find it difficult to decide whether they should buy a car or lease it. Some find it difficult to put forward the down payment and make the high monthly payments if they have to buy a new car. They would much rather lease a car without realizing that even in the case of a car lease they have to make monthly payments. Moreover these monthly payments are just going down the drain without any gain whereas in the case of a car loan their monthly payments are gradually making them the owners of the car. Its an individuals own decision but with the new car loan rates coming down the odds are more in favor of car loans for buying cars.

About the writer: A car lease is a debatable issue. However youll realize that its more advantageous to buy a car rather than leasing it which has many negative aspects. Use a car loan calculator to judge the various car loans on offer and choose the one that is affordable and convenient with new car loan rates.