Leasing a car from a company like Intelligent Car Leasing can be more cost effective than buying a new one, but there are several things you need to ask the dealer before you sign on the dotted line. It can be difficult to know what sort of things you should be asking to make sure you fully understand the leasing process, so here are a few essential questions which will help you negotiate the best deal.
What is the total initial payment?
Make sure you find out about down payments (Capital Cost Reduction) and any extra fees that are involved. Most dealers charge a number of fees upfront including your first monthly payment, a security deposit, licensing and registration fees, taxes, and processing fees. Make sure you understand every charge, and talk to the dealer if there’s anything you don’t understand. You will also need insurance – find out if this is part of your monthly fees or if it is something you will need to purchase elsewhere.
What is the amount of each monthly payment?
Leasing affects your credit score, so it’s vital that you make sure you can make regular payments. Also, bear in mind that you will likely be responsible for the maintenance costs of the vehicle including things like oil changes and wear and tear on the tires and brakes. Find out exactly what you are responsible for, and make sure you can cover that on top of the monthly fee. Don’t forget about unexpected costs like repairs, as it may be cheaper to have these done yourself rather than take the extra fee at the end of the lease.
How many months are in the lease terms?
Ask the dealer what happens if you need to end the lease early. A lease is a type of contract, so it can be very expensive if you need to turn the vehicle in before the end date, and you will still owe money. Not only that, but it will also negatively affect your credit rating. You need to be reasonably certain that you will be able to afford payments every month – as well as any repair and maintenance costs – for the full length of the lease.
Are there any possible additional charges at the end of the lease?
When you return the vehicle, you will be charged for any damage and excess mileage. You and the dealer will probably have very different ideas about how much you should pay for damage, so find out as much as you can before it happens. Obviously they won’t be able to give you an exact total, but they might be able to help you understand the type of fees they will charge for damage. Make sure you find out beforehand if there are any other fees that the dealer can add at the end of the lease – some dealers will charge a second delivery fee for the return of the vehicle.