Lease Cars Deals
Lease Cars Deals may be the only way to acquire a motor vehicle for some people. And, for a great many businesses, leasing cars and trucks is the most economical means of operating a commercial concern.
Opposed are people who consider lease cars deals as just renting a vehicle for several years … then turning it in with nothing to show for your money. Buying a car, truck or SUV will indeed leave you owner after the last payment, with something to show sitting in your driveway. Many look forward to a time when they can escape the treadmill of car payments.
However, the truth is that when paid off, a vehicle is soon traded in for a newer ride. The dream of “debt-free” living is simply not possible for the majority of Americans.
Perhaps the best argument against leasing a vehicle in the past was if you were planning on buying used instead of new. In today’s market where used cars outsell new, the demand for preowned transportation has driven the price to a level that almost renders the argument moot.
Leasing cars deals include insurance which increases the payment, and there is normally a mileage cap, after which you will pay fees of as much as 25 cents per mile.
A money saving tip for those interested in lease cars deals is to begin the initial contact with the salesman as if you intend to buy. Once you have agreed upon price, then reveal that you want to lease it. The salesman cannot, at this point, tack on “hidden costs” that are easier to conceal in a car lease.
Unknown to many people is the fact that a lease cars deals are negotiable. Haggling is worth the trouble (some actually enjoy it), and can save many hundreds and even thousands of dollars. Lease payments can be calculated in a variety of different ways.
Here’s a simple formula. From the purchase price of the car subtract the “residual” value (what the car will be worth at the end of the lease period), then divide that amount by the number of months of the lease agreement.
Lease contracts don’t have a “down payment”. What you may hear instead is “Capitalized Cost Reduction”. This refers to a trade-in or cash that lowers your monthly payments. First and last month payments are paid up front along with a security deposit. Interest, by the name of “lease charge”, “rent charge”, or “money factor is included in the payment.
Monthly lease payments are usually lower than purchase payments, because you are only paying for the price of the vehicle minus the “residual” amount. Maintenance and repairs are your responsibility, unless it’s specifically included in the agreement. If included, you will probably be charged a “deductible” each time the cars goes into the shop. Fines or “penalties” include moving out of area, turning the leased vehicle in early, and others.
When the vehicle is “turned in” at the end of the lease, there may be other costs. As mentioned above, anything over the “mileage cap” of 12,000 – 15,000 per year is subject to penalty. You will likely be charged for extra wear and tear along with a “vehicle disposition charge”. These are all standards of lease cars deals.
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