In this trying times, many are opting to lease their next car instead of buying one since monthly payments are lower compared to a car loan. It also removes a car owner's worry of what the resale value would be when the need of reselling the old unit comes.
Car leasing was accounted nearly 27% of all newly acquired car for the year 2007. To make car leasing even all more tempting, the average monthly lease payment has dropped 44 % in the past five years. However most of us simply pay too much when it's time to finally return the car.
For this post, we will note Important End of the Lease Terms so that you in the long run can maximize the savings you got on your car lease.
Excess Wear and Tear
Most leases make you responsible for the damages of the vehicle at the end of the term. Some lease contracts are reasonable enough to list what is considered over the normal wear and tear while there are some contracts that gives the lessor the right to identify what damages are beyond reasonable. Be sure to be fully aware of this, since your car is obviously going to depreciate over time. Note when can a wear and tear be considered excessive. Of course, when you decide to buy the car, you will spare yourself with these charges.
Excess Mileage Charges
Most lease contracts states the certain allowable number of miles for you to drive the car.Before jumping on that enticing car lease, it is advisable to have an approximate estimation of your car usage. You see, whenever you exceed the allowable mileage, you are usually charged for the excess when you return the car. You however won't be charge for this when you decide to buy the car.
Disposition and Purchase Option Fees:
When you return the car, most leases will require from you a fee to cover the cost of reselling the car. Such is called, Disposition Fee.
However when you do decide to purchase the car, you are charged a purchase option fee, instead, to cover the costs for paper works and such.
Most lease contracts will give you the alternative to buy the car at the end of the lease term for an agreed price. The price of the vehicle is either stated on the contract or the contract specifies the method to use in determining the total amount chargeable to you.
Every contract is different, so it is advisable that you read and understand your rights and obligations carefully.
Source:
http://www.consumerreports.org/
http://www.carleasinguk.com/
Car leasing was accounted nearly 27% of all newly acquired car for the year 2007. To make car leasing even all more tempting, the average monthly lease payment has dropped 44 % in the past five years. However most of us simply pay too much when it's time to finally return the car.
For this post, we will note Important End of the Lease Terms so that you in the long run can maximize the savings you got on your car lease.
Excess Wear and Tear
Most leases make you responsible for the damages of the vehicle at the end of the term. Some lease contracts are reasonable enough to list what is considered over the normal wear and tear while there are some contracts that gives the lessor the right to identify what damages are beyond reasonable. Be sure to be fully aware of this, since your car is obviously going to depreciate over time. Note when can a wear and tear be considered excessive. Of course, when you decide to buy the car, you will spare yourself with these charges.
Excess Mileage Charges
Most lease contracts states the certain allowable number of miles for you to drive the car.Before jumping on that enticing car lease, it is advisable to have an approximate estimation of your car usage. You see, whenever you exceed the allowable mileage, you are usually charged for the excess when you return the car. You however won't be charge for this when you decide to buy the car.
Disposition and Purchase Option Fees:
When you return the car, most leases will require from you a fee to cover the cost of reselling the car. Such is called, Disposition Fee.
However when you do decide to purchase the car, you are charged a purchase option fee, instead, to cover the costs for paper works and such.
Most lease contracts will give you the alternative to buy the car at the end of the lease term for an agreed price. The price of the vehicle is either stated on the contract or the contract specifies the method to use in determining the total amount chargeable to you.
Every contract is different, so it is advisable that you read and understand your rights and obligations carefully.
Source:
http://www.consumerreports.org/
http://www.carleasinguk.com/
2 comments:
very good post.
very good post.
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