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Let’s face it with today’s economy, who can really afford to buy a new car? Even people with the best jobs are watching every penny. That is where new car leasing comes into play.
Contrary to what some people have been led to believe over the years car leasing is not in any way the same thing as renting or renting to own. It is an affordable alternative to buying that offers lower monthly payments.
Leasing has been going on in the commercial industry for years. It is only recently that every day people have began to use this method of financing. Actually as few as 10 years ago most people didn’t know about car leasing. Now the tables have turned and we can all get in on the savings. As a matter of fact as much as 25 percent of all new cars, trucks, SUVs, and vans are leased and 75 percent of luxury cars are leased.
As with anything that you do there are things that you should know before leasing a car and there are many places on the web to help you learn the pros and cons of leasing a vehicle. Here are a few tips on leasing a car that will help you along your way.
Say No to Balloon Leasing
Balloon payments are very seldom a good idea. You get low monthly payments to start out, but then what? A few months down the road you have to come up with that huge balloon payment and maybe the money isn’t there now for whatever the reason.
Do Not Exceed Your Manufacturer’s Warranty
Just imagine you have the car of your dreams. The manufacturers warranty runs out in October and your lease isn’t up until December. The check engine light comes on and you take it to the dealership. They check it out and the engines computer has gone bad. The warranty has expired so guess who gets to pay? That’s right you will be the one to fork out all that money.
Don’t Accept a Long Term Lease
Only lease for 24 months. You have no way of knowing what tomorrow will bring, but you can have a pretty good idea that after 2 years that car is going to need new tires or brakes or something and you don’t want to be expected to pay for them.
What about Lemons?
Ask questions about the dealership that you’re planning to buy from. What happens if you buy a lemon? It does happen, and if it does what will they do about it. You don’t want your nice new car to live in the shop while you take the bus.
In many cases you can use your security deposit on your next lease. Just ask the dealer to waive the security deposit. Sometimes they will and sometimes they won’t but more often than not they will. Remember they want you to buy from them.
September to December
The best time to lease is when the new models first come out because cars loose most of their value in the first 2 years. As a matter of fact cars lose about 20% of their value in the first 12 months and 10% every 6 months after. That is a significant difference.
Shop Around and Get the Best Price
Car buying is tricky business that’s for sure, but just like anything else you buy it’s your money. Spend wisely and don’t be intimidated by big words and all those numbers. Take your time and never under any circumstance give out personal information such as driver’s license, social security number or credit card number before you have decided for sure to buy.
Now that you have a few guide lines to go by maybe you’ll have a more pleasant car leasing experience and end up with just the right car for yourself and your loved ones.