Make the Most Out of Your Car Leasing Agreement

A lot of people think that car leasing and car rentals are the same. This is hardly the case, because car rentals are more suited for those who need to drive a car for a very short period of time. Let’s say that you came straight from the airport and you need to go to a suburban area where it is quite difficult to get to via public transport. You can go to a car rental place and rent a car for a few hours, a couple of days or a week at most.

On the other hand, car leasing is actually an alternative form of car ownership. Through it, you would not have to pay a down payment but there are monthly fees that need to be made. The main concept behind a car lease is for you to pay for the amount that a car depreciates during the time that you are driving it.

When you buy a car straight out of the showroom, there’s a saying that it has already depreciated by the time that you drove the vehicle. This couldn’t be truer. In the case of a car lease, it is exactly this depreciation value that you are paying for so you wouldn’t have to shell out money for a down payment or pay a high price for monthly fees.

Tips on How to Make Car Lease Agreements Work for You

When making a choice between buying and leasing, it is a must for you to make a comparison between the two. Typically, car leasing is ideal for drivers who like getting behind the wheel of a new car every so often. It’s also suited for those who do not have funds to shell out for a down payment or a high monthly payment for auto loans. Car buying is suitable for those who do realize that cars depreciate in value, and they would not mind driving the same car for the next several years.

Now, to make the most out of your car lease agreement, here are a few tips to keep in mind:

1.      Calculate the ‘dead cost’ of the care that you are planning to lease.

The dead cost is the amount that a car dealer paid for the vehicle once rebates and incentives are factored into the equation.

2.      Make sure that there are no add-on fees before signing the car lease agreement.

After determining the dead cost, that is when you can negotiate with the dealer the amount for the car lease agreement’s monthly fee. Make sure that there are no add-on fees, especially car return fees which are usually billed at the end of the lease term.

3.      Additional tips on how to make car lease agreements work to your advantage.

You may also want to lease a quota car, which is the vehicle that car dealers need to sell in order to get bonuses from the manufacturer. If your timing is right, you just might stumble upon a dealer who’s eager to get rid of a quota car to get a bonus – in which case you’ll end up the winner because of the excellent deal that you will get.

By doing your research, you can make a car lease agreement work to your advantage and not pay any more in monthly fees than you have to.