Determine if Auto Leasing is Right for You–Part 4
Are you having doubts about car leasing? Of course, leasing a car needs some serious consideration. It is no different from buying a car. Since you still have to make monthly payments on a car lease, it is only natural that you give leasing some serious thought before taking the plunge.
Here is part 4 of the series on determining if auto leasing is right for you. If you missed out on the last posts, check out part 1 of the series on auto leasing. The various categories are thoroughly discussed on part 2 and part 3, respectively.
Category 4: Do You Mind Returning the Car after the Leasing Term?
Most lease deals have an average term of 24 to 36 months. This means that you are eligible to enjoy the car for 2 to 3 years before the lease expires.
However, you need to bring the car back to the dealer as stated in your leasing contract. The good thing about this agreement is that you are not stuck with a used car after paying for it. You do not have to deal with trading the car or selling it in the near future. Leasing a car will release you from the worries of dealing with an unfair trade-in, or high depreciation costs.
Most lease deals will allow you to purchase the car outright, instead of returning the car. If you really like the car, then this is your chance to take full ownership, or as what others call it, have full equity on your investment.
It is important that you pay attention to your leasing contract. The lease company will indicate the proposed selling price or market value of the car after the leasing period, which is normally higher than what you expect.
The choice is yours. If you want to buy the car at lease end, you need to know the true market value of the car before re-negotiating the selling price. This will avoid the consequence of paying too much money on what is officially a used car.
Leasing also comes with mileage restrictions. Want to avoid the cost of paying for excess mileage charges on your car lease? Do your best to stay within the prescribed number of annual miles on the lease contract. The mileage restrictions will vary. The average is 10,000 to 15,000 miles.
The last post will be about the cost of the lease, and why leasing a car has lower monthly payments than a conventional car loan.
Leasing is fun, easy, and more affordable if you take the time to compare the lease offers in your area. You can do this by simply asking for an online lease quote. Compare lease prices and save.