Car Leases

							                                 How to Lease a Car

       Leasing companies require that you have good credit, so everything we
       discuseed in the article on Credit Reporting As always, your credit is a
       major concern to a leasing company.
1. Credit. Leasing companies require good credit, usually with a prior history of
   purchase or lease of a car. Save money today and lease your new car.
2. Homework. Do your homework before you go into the dealer. It is best if
   you don't tell them initially that you want to lease or anything about your
   financial picture for good negotiating wiggleroom. They have procedures and
   vocabulary that are meant to confuse and intimidate the buyer. Their
   advertising is, at best, misleading and often mean to confuse.
3.   Don't Pay Too Much for the Car. Are you willing to buy this car for the capitalized cost? If
     not, you should go to your online dealer..
4. Before you visit the dealer, (1) Get your best price before you start
   negotiating lease issues. (2) Memorize our leasing glossary for your second
   step. (3) Practice calculating a lease on our lease calculator as your next step.
   (4) Complete the tutorials on this page.
              Sample Car Lease.
              Sample Lease Dialogue at the Dealer's.
5.   Know the Invoice and MSRP for the vehicle you are leasing. The dealers avoids telling you
     the selling price of your leased vehicle for a reason. It is not in your best interest.
6.
7. Use our Lease Calculators http://origin.bankrate.com/brm/auto-
     advisers/br_buyvlease.asp
                    to determine how much you can spend on your next car and
                    to determine what the monthly payments will be.
8. Down Payment. A low payment or no down payment may be allowed, but it
   will make the monthly payments higher. Make sure any down payment and trade
     equity are applied accurately as a cap reduction payment (reduces the cap cost).
9. Restrictions. Mileage allowances are limited. Modifications to the vehicle
    can bring huge fines at the end of the lease. Excessive wear and tear are also
    factored into the ending settlement. Some dealers will ease up the penalties if
    you enter into another leasing program; but basically, there are huge
    additional penalties added to the lease-end settlement. Determine at the on-set
    what the limitations and penalties are and make sure they are in writing.
10. Insurance. Determine the level of coverage required for your leased vehicle.
    The lease agreement may require higher liability limits and perhaps with
    lower deductibles; both items will increase the insurance premiums'. And real
    important……For just a few dollars a month, please get gap insurance for
    your lease. It protects you from a big loss in the event of forced termination.

11. Lease End.
       A.      You generally have four choices when you turn in your car.
               1. Return the car to the dealer and leave it.
               2. Buy the car.
               3. Use any equity in the car as leverage in a new deal.
                     4. Sell the car yourself
              B.     You should only consider closed-end leases, for it establishes a set,
                     non-negotiable residual value for the car in advance, at the
                     beginning of the lease. Any fees or charges you may owe at the
                     lease-end are described in detail when you sign the contract.
              C.     Early termination of any lease is usually painful costly. Be aware
                     of all of the obligations of the contract so that your financial
                     security is not in jeopardy..
       12. Leasing Summary - - see chart
       13. Leasing Glossary

To Finance(Loans) or To Lease?
14. Let our calculators help you to determine the vehicle you can afford.
                                Buy or lease calculator—hidden---
                                http://www.lendingtree.com/stm/default.asp
                                e-loan doesn't have one.
15. Pros: Leasing can have advantages. It can have lowered monthly rates than a loan.
    You can drive a new car every two years. You can usually buy your dream car at
    affordable prices. Low up-front fees.
16. Cons: You never own the car. A lease is not for the person who wants to keep the
    car for a long time. Leasing carries with it restrictions that cost you money. There
    are several penalties for early termination.
17. See our table summary of strengths and weaknesses. (AutoWeb has one.)
18. What we would advise you to do http://www.bankrate.com/brm/auto-advisers/br_buyvlease.asp