Some Frequently Asked Car Lease Questions

What is a closed-end lease?

There are actually two kinds of car leases: closed-end and open-end. A closed-end car lease is one where you may return the car at the end of a lease and simply walk away once your contract is done. However, you are going to be responsible for end-of-lease car charges, which may come in the form of extra mileage, wear and tear, etc. The option for you to buy the car is also given. The residual value of the car is pre-determined upon signing the lease so if you choose to buy the car, you pat the residual value and a processing fee. This is the car lease that most people buy into.

What is an open-end lease?

This type of lease is usually only considered for commercial leases. The market value of a car is determined at the end of this kind of lease contract. This is then compared with the residual value that is predetermined and the lessee ends up paying the difference which can be quite pricey.

Are there lease scams that I should be aware of?

Unfortunately there are many lease scams that you have to worry about. The list is endless and many of these deals are pulled off by dealers who look to make a profit. Be aware of the many shams by looking them up on the Internet, or even get around to asking your preferred dealer about them.

What is a disappearing trade-in?

This is one of the scams that can be quite profitable for dealers. They simply leave your trade-in off the contract and most probably they will exclude the rebate as well. Another way is the creation of random fees that are about the same price as your trade-in value or rebate. Oftentimes, the customer is not aware this is happening so make sure to do your own car lease calculations and make sure to get to know your dealer and see if he or she is trusted.

The Car Lease Calculator

Worried about entering a car lease because of the money that it will cost you? Knowing everything from how much a car costs down to the monthly payments that you will have to prepare when entering a lease is crucial. You also don't have to take the dealers word for it. Crunch your own numbers and use an online calculator to help you out. There are many online calculators that you can choose from and each of these calculators has all the necessary formulas built into them already. All you need is the information and here are some of the things you need to find out to make your own calculations:

The Manufacturers Standard Retail Price (MSRP) of a vehicle

• Your final negotiated price
• The agreed upon Down Payment if any
• Trade-in value of a car
• Sales Tax
• Length of the lease
• New car lending rate
• The value of the car at the end of its loan
  

A simple click of the mouse should show you exactly what your monthly rate should amount to. Then you can bring this back and compare numbers with the dealer. Any differences in the numbers can lead to a further negotiation and a better car lease deal.

Check out this car leasing calculator, and visit http://www.carleasingsecrets.com for the best car lease deals.

Need A Lease? Go Independent.

Yes, there is independent music, independent books, independent t-shirt manufacturers, etc. In fact, the whole trend about going independent is so incredible that even some car lease dealers have gone the way of operating on an indie level. These independent car lease companies are actually non-dealer sources that can offer lease financing.

The usual thought is that you would have to go with a finance company that deals with particular dealers. This is not true and you can find much better deals at dealers who are independent of being tied with certain financing institutions. Of course, the only downside is that you won't be offered the same promotions that many major car dealers offer but you might actually find quite a bargain if you are looking into investing in a luxury car. Is it a guaranteed best car lease deal set up? Probably not but many major car lease deals can be disappointing, too.

Tips For Lessors

Leasing or buying a car is quite the game for many dealers and this is one that you should know how to play well. After all, even if you walk into a store and lease exactly the same car as someone else, you might be shocked to find out that you might be paying higher than that other person if you are not well prepared. In fact the difference can be up to the thousands of dollars!

So before you go into the dealers, make sure that you know the exact car that you want, and also study up on its standard retail price as well. You should also have a clear idea about how much you want to pay as far as monthlies are concerned. This can be negotiated especially if you calculate the monthlies yourself just by knowing the residual value of a car. Do not give the salesperson the upper hand by allowing him to make all sorts of calculations for you. If you do that, then all is lost and you will end up paying more than you really have to. The two keywords here are research (what car you want and its value) and calculate (the monthly payments based on the residual value of the car).

Get more leasing tips here.