Leasing has been lauded as your ticket that is cheapest to keep up with the industry’s hottest vehicles and trends. The jury is however, out on leasing: with all the industry long on hype and short on detail, it is hard to differentiate between a genuinely good and a downright up-selling exercise.
So how do you spot a good deal?Here are some tips to spot a good car lease.
First, you will need to determine if you can find any down payments in the lease. A down payment is the lump sum amount which you pay upfront, in a choice of cash, non-cash credit or trading allowance, to cut back your payment per month.
You need to think before putting money down on a lease: not just are you getting a rough deal, as you’re essentially forfeiting the typical rule of leasing: not putting any cash up front, however cash is not recoupable
At the end of your lease there is certainly another big disadvantage: in case of your car getting damaged or stolen, you insurance and also the gap cost will not cover the loss.
Most leasing companies permit you a limit of 45,000 free miles within the period of a 3-year lease. This might look like a great deal in the beginning, however when you think about it only comes to 15,000 miles over a 12 month period .it is not so difficult to foresee why it could be hard to stay in this particular limit. Even people working at home don’t have a lot of trouble putting 15,000 miles on the cars.
In the event that you exceed the mileage limit, the penalty for each excess mile is as high as 20 cents. This might add up quickly on the duration of your lease: an additional 4,000 miles a year over the length of a 3-years lease contract, can become costing you a supplementary $2,400 in excess mileage charges! Be realistic regarding your mileage needs, especially if you have to regularly commute over long distances, before you sign the contract. Consider padding the miles that you expect to use as it is less costly to contract for the extra just before sign than it is to pay the extra charges at end of your lease.
Sales tax is generally capitalized and put into the monthly obligations. However, some dealers choose never to include it within their calculations to operate a vehicle the advertised lease payments even lower. What they do instead is state into the small print that the payment per month excludes “sales tax”.
Make sure you carefully read the fine print for just about any extra, hidden costs not within the advertised monthly payment. Unscrupulous fees that typically slip via the cracks include sales tax, registration and title fees