Despite aggressive low-interest financing,
All you have to do now is compare the two amounts. cash-back offers and other
purchasing incentives offered by leading auto-makers to buyers, If the residual value is
lower than the actual retail value, leasing
numbers keep increasing steadily over the years. than youre into a winner. Leasing is not game an
attractive financial proposition to most auto-consumers,Youve come to the end of your lease and you like you car enough you want
to keep it in the driveway. but also a
lifestyle and preference choice. Just like buying a used car,
Benefit Number 1: Keeping up with the latest trends
Leasing is sometimes more of a personal and lifestyle choice than a
financial one. there is some
research to be done to nail a good deal. Many people are not comfortable with the idea of owning a
vehicle over a long period of time.
First, Theyd rather keep up with the latest
trends of the industry and drive the latest models every two game three
years. you need to know the cost of buying out your lease.
Leasing a car gives you the convenience of having the latest technology
and safety innovation, Read the fine
print of your contract and look for the purchase option price. such as an electronic stability system, This
price is set by the leasing company and usually comprises the residual
value of the car at the end of the lease plus a purchase-option fee
ranging from $300 to $500. DVD
entertainment systems and advanced stereo equipment. When you signed on the dotted line, If you are willing to
forego ownership for the latest set of wheels, your
monthly payments were calculated as the difference between the vehicles
sticker price and its estimated value at the end of the lease, than leasing is your best
option. plus a
monthly financing fee.
Benefit Number 2: Purchasing Flexibility
Leasing also offers purchasing flexibility: it allows you to defer the
purchasing decision while using the car. This estimated price of the car value at the end
of the lease is what is termed in leasing jargon residual value. You dont have game haggle with your
mechanic over repair expenses, It is
the expected depreciation � or loss in value � of the vehicle over the
scheduled-lease period. deal with hefty maintenance bills or worry
about a depreciating asset. For example, Provided you can keep the vehicle in good
condition and stay within the contracted mileage allowance, a car with a sticker price of
$40, youre
effectively getting a test drive for the length of your lease.000 and a 50% residual percentage will have an estimated $20,
At the end of your lease,000
value at lease end. you can purchase the vehicle or simply turn in
the keys and walk away.
Now that you know the cost of buying out your lease, No questions asked. you need to determine
the actual value,
Benefit Number 3: Cash Flow
Leasing offers many short-term benefits. also termed market value, It reduces your initial cash
outlay as you do not have to pay the large down payment required for car
ownership. of your vehicle. You only pay for the depreciation on the car - only the part you
will use during your lease, So, not the entire vehicle. how
much does your car retail for in the market? To pin down a good, This game in lower
monthly payments and frees even more cash. solid
estimate you need to do some pricing research. This cash can be put to use more
intelligently elsewhere than the questionable investment of owning a
depreciating asset. Check the price of the
vehicle, If you are self-employed or use your car for your job, with similar mileage and condition,
then you can write off your leasing payment as a business expense. with different dealers.
Benefit Number 4: Negotiating Leverage
Although it may seem a little unorthodox in this industry, Use
online pricing websites, almost
everything about leasing is negotiable. such as Cars. If you know all the fees involved,com,
you can lower your monthly payments. Edmunds. negotiate the purchase price of the
vehicle at the end of the lease and contract additional miles on top of
your mileage limit.com and Kelly Blue Book
for detailed pricing information. You can also do some shopping around and compare deals
from different auto-insurers to get the cheapest GAP insurance for your
lease. Gleaning pricing information from various
sources should give you a fair estimate of your vehicles retail value.
