Leasing a Car for the First Time
If you are looking into leasing a new car for the first time, here is a quick overview of what you should know. Leasing a car means that you are paying a monthly fee to use it for a set period of time, instead of buying it. You don't own the vehicle. You can also opt to make a down payment to reduce the monthly payments or you can look for a $0 down lease deal. The lease will have a fixed time period, usually of 1 year or more. You can choose how many years you would like to have it for. You can get an initial car quote or lease quote online. Online car quotes are a convenient way to get the price info you want quickly without making a commitment.
When the lease time period is up you will have a few options. You can return the vehicle, trade it in or buy it.
Returning the vehicle: When the lease is over you can just return the vehicle. When you return it, it will be inspected for damage and you will have to pay for any damages. You could also choose to have the damages fixed on your own before returning the car, if you think you will get a better deal on repair prices somewhere else. If you are returning the car in perfect condition then it will be much easier.
Re-lease: You could extend the lease time for the same vehicle or lease a new car instead. Some people enjoying the novelty of leasing a brand new vehicle every couple of years.
Buying it: If you really like the car and want to keep it, you can buy it by paying off the remaining balance. This is also an option to consider if there is damage to the vehicle and/or you went over the allowed mileage. That way you will not need to pay for wear and tear damage or extra mileage. You can negotiate the buying price, you don't need to pay the price that they quote you. Do your own research first to see what the car is really worth.
There are some good advantages to leasing a new car instead of buying it. You don't need to make a long term commitment. The cost is divided into affordable monthly payments. You can afford a nicer model. It makes driving a new car more affordable. You can choose the number of years you want to lease for and the monthly rate is negotiable.
make sure to read the lease contract carefully before you sign it to make sure you understand all of the terms and conditions and what you will be charged for. The lease contract will usually state an amount of miles that you are covered for during the lease period. You will still need to have insurance coverage as well.
You should also be aware of the early termination options. It is usually possible to end a lease early but it can be expensive and should be avoided. There are usually penalty fees involved and your credit rating can also be negatively affected. Consider finding someone else to take over the lease instead and doing a lease transfer. There are some online services such as Swapalease that can help with finding someone. They connect people who want out of a lease early with people who are looking for short term, more affordable leases.
Published on Wedsneday, October 12, 2008 - Email to a friend
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