Car Lease Checklist
Car leasing may sound clear-cut however there are details that lessees should pay attention to. Below is a quick checklist when opting to lease your next car.
- Shop around. For every dealer and manufacturer is a different car lease rate that can be negotiated to fit accommodate your needs.
- Always read the fine print. Make sure to orient yourself ahead of time about all the hidden charges associated with your car lease, i.e, security deposit, registration fees, and lease-end services fees. A “Special” deal won’t be as special if from the low monthly payment of $199, you’d be paying twice the amount for the “partially declared” charges.
- Lay down a closed-end lease. If at the end of the lease, the value of the car is less than the residual value, the lessor will owe the lessee the difference. However if the actual value is more, then the lessee has the option to buy the car for the fixed residual value or pay the lessor the difference instead.
- Canvas for insurance rates for the kind of coverage required by the lessor. The car lease agreement may require higher liability limits and lower deductibles than you currently carry, and both will increase your insurance premium.
- Choose cars to lease that tend to hold their value well. The sexiest cars are not always the best buys in the world of leasing.
- Negotiate the price of the vehicle before moving to car lease negotiation. Before discussing the car lease details, make sure to have set the car’s selling price first hand. Doing so will prevent the vehicle's selling price from influencing the lease negotiation.
- Increase the mileage limit before you enter into the lease, if you feel that you’ll surely exceed it. Buying an additional mileage over the term of the lease is less expensive than paying for the excess at the end.
- To avoid lease-end wear and tear charges, maintain the car well during the lease period. Make sure to regularly have the leased car tuned-up. Lessors will not think twice in charging the lessee for perceived poor treatment.
- Remember that if a lessee decides to purchase the vehicle at the end of the lease, in the long run car leasing may end up being more expensive than a loan.