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Car Lease

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					                                      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

				
DOCUMENT INFO
Description: This is an example of a car lease. This document is useful in conducting a study on car lease.