When you lease a vehicle, you are renting the vehicle for a specific period.
a)
ASK YOURSELF…
- Are new features, styles, product improvements important to you?
- Do you want a new car every three to four years?
- Is ownership important to you?
- Do you drive less than 20,000 miles per year?
- Do you care for your vehicle by cleaning and maintaining according to the manufacturers’ recommended schedule?
- Do you write off your vehicle for business use?
Saying yes to a majority of these questions would make leasing a good option for you. Do I recommend leasing? YES. Leasing is all about payments. If you cannot afford the vehicle of your dreams on a loan, then a short-term lease (36-48 mos.) may be the answer.
Leasing allows you the ability to keep your cash free, minimize your exposure to falling vehicle values and limit your liability in the event of a theft or total loss.
- However, when promotional interest rates fall into the 0% – 3.9% for 60 months, one must consider the overall cost for a driver keeping the vehicle over the 100,000 mile mark.
- You must have Excellent credit which means a FICO or credit score of 700 or higher, to lease a vehicle. Lower credit scores may still be eligible for a lease but the money factor (interest rate) could be higher, depending on the lending institution.
GIMMICKS and things to check on the paperwork…
- Watch your miles on the lease. DOES THE ADVERTISED LEASE include enough miles for your daily commute? Your contract should reflect the miles you will use, not less. IS the exact miles on the car at time of delivery noted on the lease documents?
- Pick the term, no longer than 48 mos. You cannot drop-off the old “leased” car for a new “leased” car at anytime, without financial consequences. Will this car suit your needs for the entire term of the contract?
- IS the ADVERTISED LEASE AD clearly understood?$ 199.00 a month with $9999.00 due at signing may NOT include first payment, dealer fees or sales tax. The total could be 10,999.00 Dealers DO NOT HAVE TO HONOR a national ad.
- DO YOU QUALIFY for the ADVERTISED LEASE PROGRAM? Many lease promos today are for people with over a 720 auto credit score. The interest rate or Money Factor may jump substantially if you dont make the grade. Make the dealer show you your credit report BEFORE agreeing to a higher lease payment, just ’cause he says so…
- What are the disposition fees at the end of the lease? The leasing bank will likely have a fee for disposing of the car if you dont buy it at the end. What is that charge? This is not a negotiable item.
- IS GAP coverage included? It may be clearly stated in the contract that the bank fee (acquisition fee) includes GAP protection. Make sure you aren’t paying it twice. If the dealer doesn’t offer it you may be able to purchase GAP from your auto insurance company.
- AUTO INSURANCE COVERAGE. Most leases required $100-300K min. liability coverage on your auto policy. Are your prepared for the insurance cost increase?
For more information on leasing contact
sarahlee@mycarlady.com,mvides422@gmail.com,carlady@cox.net Advice is FREE anytime, it’s the negotiating you pay for…]]>