Car Leasing 101
Leasing a car can be one of the best decisions a consumer makes. Despite
attitudes of the past,
car leases are no longer considered scams. Of course,
buying a car and
leasing a car both have advantages and
disadvantages. Consumers must clearly understand the difference between
car buying
and
car leasing in order to make the best decisions. The benefits of
auto
leasing apply to certain types of consumers.
According to
www.leaseguide.com, a website dedicated to
educating the public about
car leases, there are five questions a consumer needs to
ask before
leasing a car. First, is it worth it to trade ownership for lower
monthly payments? Second, is a
car lease commitment of at least 24 months
feasible? Third, is a mileage cap of 12,000 to 15,000 miles enough? Fourth, can the vehicle be
kept in decent shape during the term of the
car lease? Fifth, is the consumer
credit report good enough for the
car lease provider? If the
answer to all of these questions is yes
leasing a car could be the perfect option.
Car Dealers and Car Leases
Before
leasing a car be sure to view a recent
credit report.
This allows the consumer to approach
car dealers and
car lease
providers with an informed attitude. Online resources, such as
TrueCredit.com and
OnlineCreditInfo.com can be used to obtain
free credit reports quickly and
easily.
Car dealers do not actually provide
vehicle leasing. A
car dealer and the consumer agree on a price. The
car dealer
then sells the car to the
car lease provider, usually a bank, credit union or the
financial division of the car manufacturer. The
car lease company then
leases the car to the consumer.
Car buying websites, such as
Autobytel.com,
Autoweb.com,
CarSmart.com,
Autos.yahoo.com and
Cars.com, are capable of offering
car lease
and
car buying options.
Car Lease Terms
The key to
leasing a car in any situation is getting the best price available and
corresponding the
car lease term to the
car warranty.
Negotiating a car lease price is important because the lower the price of the car,
the lower the monthly
car lease payments.
Car leases are
generally set for terms of 24, 36, 48 or 60 months. Matching the
car warranty
to the term of the
car lease allows the consumer protections from high
auto repair costs. Choosing to
lease a car for 24-48 months is
best. Only certain car manufacturers offer 60-month
car warranties. Also be aware
that cars with higher depreciation will have higher monthly
car lease payments.
For a short-term
auto lease many consumers choose
car lease
trades. Internet companies like
SwapaLease.com and
LeaseTrader.com provide services
to consumers interested in exiting a
car lease early or entering a
car
lease with no down payment.
Car leasing has become a popular way for
consumers to drive the cars they want with much less out of pocket expense. Remember to learn about
all of the possibilities when
buying a new car.
