Thursday, July 10, 2008

Things to Ponder Before You Lease That Car

Length of Contract: Most car leases are 18, 24, 36, or 48 months in length.
Negotiate: Most dealerships buy cars in big volumes, and they get a good deal because of that. It’s not that hard for them to pass on that benefit to their customers. All it takes is a good negotiation.
Residual Value: A good residual value at the end of the contract will bring down the monthly installment. The residual value directly affects your monthly payment.
Early Termination Fees: Most car leasing agreements will demand large amount for penalties when a lessee terminates the contract.
Excess Mileage Fees: Try to measure up your driving mileage to the number that the dealership demands from you for the lease. If you’re that much of a driver and you think you’ll go beyond that number then check for another car.
Wear and Tear: Have a daily checkup of your car to monitor its wear and tear status. Bear in mind that in the end you would have to pay for any excess of that.
Car Modifications: If you’re intending to make your car an art car entry, take note that you have to pay for all expenses to revert the car back to its original make.

Sources:
http://www.carleasinguk.com/
http://www.edmunds.com

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