Before leasing a car, there are some things you should know. If this is your first time leasing a car, the information I will provide you with may prove to be helpful in your decision to lease a car, and how to do it.
When you decide to lease a car, you are basically paying to drive a new vehicle, but not to own it. You will need to make monthly payments. As long as you keep up with the payments, the dealership will allow you to keep driving the vehicle. At the end of a lease, you return the vehicle to the dealership or buy out your lease if you want to keep the car. Sounds sorta great, doesn’t it? There is still some further information you may need before deciding to go through with a lease or not.
Things you should know:
Your credit decreases- Applying for a lease causes there to be a credit inquiry on your report. It also increases credit utilization. Both of these things adversely affect your credit score. Skipping or handing in late lease payments, also cause your credit score to drop.
Leases can be negotiable- It isn’t impossible to negotiate a lease. You should at least attempt to bring down the capitalized cost. Smaller fees, such as document fees and tire fees can be waived completely if you take the time to negotiate.
No money down- A down payment is like a pre-payment. But if your car is damaged to the point of no repair, or stolen, you lose that lease privilege. You should keep a no money down payment to keep the lease in the lessee’s favor.
Repairs- Most of the time, you are required to pay for repairs. Any oil changes, tire changes, or tire rotations are expected to be done by you. Although, some dealerships do offer free tire rotation and oil changes to leased vehicles. You should talk to your dealership before buying the repair yourself.
Does it still sound great? Considering the information provided above may be a key role in saving money or spending money reasonably while leasing or buying a car. Negotiate the prices of fees required, and even the capitalized cost. Why spend so much when there is a chance to negotiate a bargain? Take the chance. If you do decide to go through with a lease, you should keep the above information in mind as well as any other research you may have stumbled upon.