Car leasing deals can provide some excellent advantages compared to buying a vehicle. This article will help you decide if these benefits suit your needs.
Down Payment
One of the benefits of leasing a car is the amount required as a down payment. Usually this is quite lower than what is necessary when purchasing a vehicle based on a consumer's credit standing and income requirements. Often, this payment can actually be less than half required to buy a car. However, be wary of "No Money Down" deals that will have a great affect upon your monthly payment. This often leads to monthly payments much higher than normally charged when even a small down payment is made.
Monthly Payments
Lower payments are the norm when leasing a vehicle because you pay only on the depreciated amount of the vehicle during the contract term. The projected value of the vehicle at contract end is deducted from the original sticker price and the difference is converted into monthly payments throughout the contract term.
Vehicle Level
Leasing allows a consumer to gain use of a higher level of car than available for purchase at a similar cost. Also, depending on the terms, you can drive a new car every couple of years, trading in the previously leased vehicle and, if maintaining successful payment history, easily renewing a leasing agreement with the same company obtaining a new vehicle.
Maintenance Worries
More often than not, lengths of leasing contracts coincide with warranties offered by manufacturers on new cars. This allows the consumer to have nearly complete coverage when it comes to necessary repairs. Additionally, some leasing promotions include periodic maintenance check-ups ensuring a smooth ride during the entire length of the contract.
Taxes
Sales tax is paid only upon the depreciated value and not the entire value of the leased vehicle. Also, when leased for business purposes, the entire transaction may be tax deductible.
Vehicle Sale
Unlike purchasing a vehicle that needs to be disposed of to get another, when leasing a car the consumer has no hassle turning the car in or needing to sell it before getting another. In fact, some lease arrangements have renewal options built in guaranteeing a new vehicle available at the end of the current term.
Gap Insurance
Sometimes lease arrangements include free gap coverage as a selling point to protect the consumer in the event the car is completely lost due to an accident or theft when more is owed than the car is worth.
Considerations
Before signing any auto lease, make sure you understand the full details of the contract, including mileage limitations and insurance requirements. Also, review any early termination fees should you find that you are unable to continue the lease due to unemployment or other reasons. Be sure that you understand the expected balloon payment at the end of the lease in case you decide that you want to keep the car. Decide whether or not you would be able to make arrangements then for a new auto loan rather than make a huge balloon payment.
Any consumer seeking car leasing deals will be met by a host of options. With a little perseverance, a bit of self-education and employment of some simple common sense, the entire process can be streamlined and the end results productive.
Search Expert Consumer Sites
Sites like CarsDirect allow visitors a number of different tools and calculators to help in an online search. These are consumer-friendly websites with no particular affiliation to any specific brand, manufacturer or dealer. However, manufacturers will place advertised leasing deals on these sites so they attract as many consumers as possible. Subscribing to periodic alerts from these websites will allow you the opportunity to stay up to date with any new deals that are published.
Check Out the Manufacturers
Visiting manufacturers' sites is a good way to gain valuable information concerning car leasing deals. Additionally, most manufacturers will lead site visitors to a local participating dealer where eventual physical negotiations can take place. Visiting a manufacturers' site allows you to gain information about national and regional rebate programs as well as other specials like closeouts and other deals. Again, options to subscribe for periodic email newsletters can help you stay current with the latest deals.
Get Your Credit Score
Before you begin your face-to-face negotiations, be sure to obtain your credit score from the three national reporting agencies: Experian, Equifax and TransUnion. Check the report for any inaccuracies that can be corrected before the start of any car leasing negotiations.
Call Local Dealers
Contact your local new car dealers checking on any upcoming or current promotions. Make sure to get the information about leasing similar types of vehicles so your comparison shopping leads to competitive pricing.
Check Local Advertising
Consult local newspapers and examine all direct mail offerings for the latest leasing deals offered by both manufacturers and local dealers. Newspapers are a good place to find car leasing deals, especially during holiday sale periods and other event situations such as end of school year graduation specials. Furthermore, closeout deals are always advertised when manufacturers and dealers are looking to move out last year's inventory to replace with new incoming models.
