6 Steps to obtaining an Auto Lease

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Auto leasing is now more popular than ever before. Leasing a car is basically like renting a vehicle, but for an extended period of time and some extra fees. Currently, most people prefer to lease a new car rather than purchase a new car because the former allows them to drive the car of their dreams for a lot less money than the latter. However, you should understand that leasing does not give you complete ownership of the vehicle. If you have decided that leasing is an excellent alternative for you, here are the steps to obtain an auto lease.

6 Steps to obtaining an Auto Lease

1. Choose a car that holds value

When leasing a vehicle, you will be paying for its depreciation, interest rate, maintenance, and other charges. So, if you choose a valuable car, or with a low depreciation rate, you will pay less. An expensive vehicle has an excellent resale value hence a substantial residual value. Residual value is the amount that remains after your lease contract is over.

2. Leasing Specials

Sometimes, a car manufacturer may realize that a particular model is not selling quickly. As such, the manufacturer may decide to advertise special leasing offers to move the vehicle. Such widely publicized cars come with a low monthly payment. Make sure you ask whether the monthly payment includes sales tax and fees. Additionally, you should inquire whether the lease requires a large down payment or not (often called Cap Reduction Payment). Some other charges to watch out for include bank fees, mileage allowances, and low-security deposit.

3. Lease Terms

Most lease terms are between two to five years. However, a three-year term is often the best option since most manufacturers offer a 3-year bumper-to-bumper warranty. As a result, if you lease a car for three years, you will always be covered under the manufacturer’s warranty.

4. Payment

You need to estimate your monthly and overall payment before leasing a vehicle. Several online lease calculators are available to help you determine how much a lease will cost you for a specific make and model car. Some calculators will give you results based on the purchase price, interest rate, lease period, and other information.

5. Lease your vehicle

Once you know what type of car you want and determine that you can afford the cost, go to the dealer of your choice, and begin the process. A car dealer will require that you sign a contract. You will also have to listen to the sales manager as he or she offers you several types of extended service contracts. However, most people turn down these services down since they will never own the vehicle. Before signing, make sure you go through the agreement to confirm everything that you expected.

6. Get Gap Insurance
While most people may oppose this, it is vital to get gap insurance for a leased car. If your leased car gets stolen or involved in an accident, there may be a significant gap between what your insurance may pay you and the amount you have to pay to your leasing company. Gap insurance will cover the difference.

With these steps in mind, you can contact the best lease trader for an excellent deal.

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