How And When To Negotiate
Do you know how and when to negotiate your car lease deal? Statistics show that over half of all luxury models are still leased and over 20% of all vehicles are leased. The important factor is that knowledge is power when it comes to automobile leasing. You need to be able to recognize a bad deal as well as know how to negotiate a good deal. I hope you find this article helpful in knowing whether the deal is good or bad for you.
The instability of today’s economy has caused a boom in car leasing. Many that have leased over the last few years have gotten stuck in bad contracts making them overpay. Others who could benefit from leasing have shied away from it due to misconceptions or not fully understanding auto leasing. The other thing that has impacted leasing is the fact that many car manufacturers have lower interest rates as low as zero percent. In spite of this fact, there are many good lease deals out there to consider.
The big allure of leasing versus buying a new vehicle is that you get a new vehicle for which you purchase the use of for a determined period of time rather than the lifetime of the vehicle. It is similar to renting in principal but does not work exactly the same way. Evaluating a leasing contract comes down to basic arithmetic. You will need to consider the following when leasing: the total initial payment which includes the down payment and any other fees, the cost of the each monthly payment, the number of months included in the lease, and possible additional charges that may incur at the end of the lease.
The additional charges are related to how many miles you drove the car during the specified period. Most contracts allow for 12,000 to 15,000 miles per year. Any overages will result in a fee as steep as 25 cents per mile.
Any damage to the vehicle, such as deep scratches, dents, glass cracks and non-working accessories will also incur a fee at the end of the lease. Some vehicles may be purchased at a pre-set price at the end of the lease. This should be negotiated at the time the leasing contract is made.
If you have little money for down payment or like to upgrade or replace you vehicle on a regular basis leasing will probably work better for you as it usually has a lower initial fee. When leasing a vehicle you may wish to visit dealerships and look at new vehicles of the same make and model as the vehicle you would like to lease. This will allow you to make a more accurate decision. I hope this has helped you know how and when to negotiate your car lease deal. ----
