How To Lease A Car
With a lease, you can get more car for less money. If you can't afford to buy the car you want outright with cash or credit, a creative alternative is to lease a vehicle. We'll show you how this is done.
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You will need
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Step 1:
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Know The Difference
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Knowing the cost of the car you want and the rate of depreciation are critical factors when leasing a vehicle. A typical finance structure on a lease will have you paying the difference between the capitalized value of the new car, and the depreciated residual value at the end of the lease, usually 2 - 4 years
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Step 2:
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Find the Deal
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Make sure that all rebates and incentives are applied to lease. Remember, the lower the capitalized cost of the vehicle, the smaller the gap between the new price and the resale price at end of term. And that means more savings for you. Therefore, zealously negotiate the price of the vehicle - just as if you were buying it.
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Step 3:
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Open And Close Case
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A Closed-End Lease is the normal contract for most consumers. However, an Open-Ended Lease means that the residual value will be defined at the end of the term, for better or for worse.
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Step 4:
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Use It And Lose It
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Mileage limitations are built into the lease so be careful of how much you drive the car. Don't take a reduced mileage allotment to lower your monthly payments, or you might find yourself "hoofing' it" at the end of each month.
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Step 5:
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Stick To The Schedule
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Keep the car clean and repair any minor dings and scratches. Since you do not own this vehicle and will have to return it one day, it's best to treat every cosmetic defect beyond normal wear and tear. Excessive wear will come directly out of your pocket at the end of the lease.
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Step 6:
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The Return
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Returning the leased vehicle is the most important step in the process and will potentially save you thousands of dollars.. This is not as simple as handing the dealer the keys and walking out the door- According to the contract, you may be subjected to excess wear and tear penalties, disposition or clean-up fees. Try to keep the car in as-close-to-new condition as possible. Early Termination fees are also quite steep so try to lease a car in the first place which will meet your needs until the end of the term.
