Q. Car Leasing – What is leasing?
A. Leasing is nothing other than paying monthly for the use of an automobile. Just like leasing an apartment is paying to stay in an apartment monthly. A myth on car leasing is that you own the vehicle when you have it. With a lease you are using the automobile but do not own it. In other words just like an apartment you have to maintain the condition of the car in the same way you do the apartment. The car leasing company expects you to return it in reasonable condition for the amount of time you have used it. You have to maintain full coverage insurance just the same as you would if you were purchasing the vehicle through financing. The expectation is that you use the car for the duration of the lease and then return it at the end in the condition described in the lease. This includes the amount of miles on the car that will be discussed at the beginning of the lease. The car leasing company expects you to return it in reasonable condition for the amount of time you have used it. You have to maintain full coverage insurance just the same as you would if you were purchasing the vehicle through financing. The expectation is that you use the car for the duration of the lease and then return it at the end in the condition described in the lease. This includes the amount of miles on the car that will be discussed at the beginning of the lease.
Q. Do I need to purchase extra miles?
A. Many customers have heard horror stories about car leasing mileage overages. Whether they are true or not is debatable. The truth is you need to know exactly how many miles you drive your car each year (and please be realistic). If you do this and then fit yourself to the best lease for your needs then you have nothing to worry about. It is better to over-estimate your usage and purchase miles at the discounted rate while you are leasing the car then to go over and have to pay full price when you turn the vehicle in.
Q. Is leasing better than buying?
A. This question looms in every prospective car owners mind. This question is really ! subjective. You need to decide what works best for you. If you! plan o n making a car payment and like to drive new and dependable cars then leasing may be your opportunity to always have that new car. Leasing gives you a lower payment per month than buying a car and therefore affords you the opportunity to drive a more luxurious car than you can afford to purchase outright. It is really a person specific question and cannot be answered by anyone but you.
Q. Can I negotiate the price of the vehicle?
A. Absolutely! You most definitely can and should negotiate the price of the car in the leasing process. This of course may not apply if the dealer is offering you a deal advertised by the manufacturer for some kind of promotion. Otherwise you should negotiate the price just the way you would if you were purchasing the vehicle. This is another myth on car leasing that we are exposing. This will be important at the end of the lease if you find that you love your car and want to purchase ! it so make them give you the deal you deserve.
