Understanding Car Leasing

Car leasing is certainly one of the most popular ways of owning a vehicle. According to some reports, more than thirty percent of all new cars are leased and even the percentage of leased used cars is rising steadily. Quite simply, car leasing is a way of paying for the use of a car or truck over a fixed period of time. Once your lease term is ended, you are expected to return your car to the leasing company in good condition. You are responsible for any damage to the vehicle as well as any mileage you have exceeded. Unlike renting, car leasing usually starts with terms that last a minimum of two years. If you want to lease a car, you will usually negotiate a price with a dealer, just as you would if you were buying a car. Once you sign the car leasing contract, the dealer will sell the car to a leasing company at the price that you have agreed on. The leasing company will then lease the car to you, at a rate based on the negotiated price.

Is it Better to Seek an Independent Way of Car Leasing?

Since you will be dealing with a car leasing company, you may think that you may be able to find a low rate by going to a leasing company, bank or other financial institution. This is true, but dealers make it very convenient to do your car leasing at the dealership - and you often will get very competitive rates. You should consider the amount of time you have to devote to seeking financial institutions and consider the car leasing rates you are willing to pay. In most cases, you will find a dealer who is willing to offer you the car you want at a reasonable rate.

Car Leasing Rates

Whether you lease a car or buy a car, car pricing is the first and most important factor to consider - there is no point in getting a car you can't afford or paying money you don't have to pay. Know that you can negotiate price - and expect to do so, unless you are taking part in a special offer that includes pre-set and already-low rates. A great online service right now is quick car pricing. Sites such as Autobytel.com, Autoweb.com, CarSmart.com, Cars.com, Edmunds.com, Autos.yahoo.com and eBay.com allow you to compare prices of different models, then go to your dealer knowing how much you will be spending on a lease. For another neat online tool, click over to LeaseTrader.com before checking with your dealer. This handy site allows you to take over someone else's lease. Not only do you get great rates on many models, but you can choose to lease for a shorter period.

Dealing With a Dealer When Leasing a Car

When you get to the dealer to discuss car leasing, be ready. Be sure to get all the features you want in your car as well as the color you want. Not only will you have the car for at least two years, but since the car belongs to the car leasing company and not you, you will not be able to customize the car or change the color. Also be sure to take a car leasing term that benefits you. Always make sure that the car leasing term does not exceed the warranty, so that you are covered for as long as the car is with you. Since most cars start to have problems in their fourth or fifth year, avoid car leasing terms of four years or more.

The Crucial Secret of Car Leasing

Finally, when it comes time to sign your car leasing contract, check and re-check. Especially check the math to make sure that no "errors" leave you paying hundreds of dollars extra. The dealer may start to get fidgety and you may want to sign and leave, but check the math anyway. Car leasing is a fiscal responsibility and you will be held to what is in the contract - not to the payment you and the dealer agreed to verbally.