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Car Leasing Kit And Guide.
http://lnk.co/IHAID
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Purchasing a car is the second biggest financial commitment for most of us.
Certainly there are a variety of considerations that people evaluate when it comes to purchasing a
new car. For this article, let's take a look at auto lease deals as a possible type of ownership.
For the average buyer, auto lease deals are at best a bit murky and even down right confusing.
There a couple key components when it comes to auto lease deals that you need to be aware of if
you are looking into the possibility of leasing your next car.
First all... and most importantly... auto leases can, and should be, negotiated.
The vast majority of people don't realize that the lease numbers can be negotiated. The dealer is
still selling the car to a leasing company. Therefore, the car has a selling price. The selling price of
the car ultimately determines what your payments will be... so negotiate the price of the car for
goodness sakes.
The monthly lease payment is not set in stone. It is very negotiable. If you just roll over and accept
the quoted auto lease deal, then you've lost money.
So, remember this very important point. Negotiate the price of the car you are looking at just as
strongly as if your were going to purchase the car outright.
Are auto lease deals just a waste of money?
Although it is true that you don't build equity in the car when you are leasing it. The advantage is
that you have a car to drive that is costing less per month in monthly payments... so your equity is
in the form of having more cash flow per month that is not tied up in car payments.
Secondly, cars are not an investment. They are an expense. And the biggest expense comes in
the form of deprecation. Make no mistake about it... even though you don't write a check every
month for depreciation, it is a very real expense to you. So, even though you are making car
payments when you buy your car for eventual ownership, you are still losing money when you
make those payments.
With auto lease deals, the depreciation of the vehicle is already up front and figured into the cost
of your monthly payment in the form of the residual value of the car you are leasing.
Another misnomer is that auto lease deals are a complicated process. This simply is not true.
They are essentially the same process as buying the car on any purchase plan.
The difference is that you enter into a lease agreement agreeing upon the selling price or the
market value of the car once the lease period is over. Essentially, you are going to 'sell' the car
back to the leasing company at the end of the leasing period at a predetermined price.
If this sounds terribly confusing, here's a very simple real world analogy when it comes to auto
lease deals. Leasing a car is like buying a pizza and paying for only the slices that you eat. The
rest of the pizza that is left over would be known as the residual value of the pizza/car and this is
the price that the pizza shop/leasing company will buy your pizza/car back from you at the end of
your pizza/auto lease deal. And this residual value is agreed upon at the front end of the deal
when you sign the contract.
Certainly auto lease deals aren't for everyone. But they do serve a very real and affordable option
for many people.
Either way, if you've never considered leasing a car, it is definitely worth your time to take a look at
the possibility and crunch the numbers for yourself.
TJ Lashley is a frequent contributor who especially enjoys writing on family, home, and topics
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Car Leasing Kit And Guide.
http://lnk.co/IHAID
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