Leasing

Lease is a method of paying for the use of a car, truck or van over a specified period of time. Sounds like renting, but don't get the 2 confused because they are very different.

10 Steps to leasing a new car

  How leasing works

By renting a car for as little as a day, or even a few hours, leasing typically starts at 24 months and doesn't provide for easy termination or vehicle swapping. At the end of the lease you're expected to return your vehicle to the leasing company with no more than normal wear and tear. You'll have to pay for any damage or extra mileage over and above your contract-specified limits.

  Checking incentives and special lease deals

Most Car manufacturers commonly offer specials lease. This is a good way to shop for a leased car because it can save you even more money.

  Duration of lease

Possibly one can lease a car for 2, 3, 4 or 5 years. However, the 3-year lease is the best choice for most people. If your lease is for 3 years you will always be under warranty without paying extra for an extended service contract.

  Estimating your lease payments

A lease payment is calculated from many different numbers and can be difficult to understand. However, you should attempt to estimate your own lease payment before you go shopping to avoid paying too much.

  Finding the exact car to lease

This means you know the make, model, trim level, options and color. The more flexible you can be, the better the lease deal you will be able to make. For example, a shopper might be very firm about the make, model and trim level, but could accept a variety of options and colors.

  Test driving the car salesman

In other words, you can determine if this is a person you want to do business with. This is a good idea to consider this issue ahead of time, before you get to the deal-making phase of the lease process.

  The final test drive

When you arrive on the lot you will want to take a careful look at the car you are planning to lease. You should also drive the car one more time. You might have driven several other cars during your search and need to refresh your memory.

  How to negotiate a lease payment

Negotiations can be handled several ways. If the car is widely available, contact your local dealerships and solicit bids (as described in Step 5). Take the lowest bidder, call the other dealers, and see if they can beat that price. If not, you are at rock bottom.

  Reviewing and signing the paperwork

At the dealership, you will be presented with the lease contract for your new car and a dizzying array of forms to sign.

  Successfully managing your leased vehicle

As you drive your leased vehicle, you need to remember that the car will have to be returned in good condition. Have all the scheduled maintenance performed at an authorized dealer and keep your eye on the odometer to avoid exceeding the mileage limit.

Re-lease your vehicle

Re-leasing your vehicle allows you to:

  Keep the vehicle you know and enjoy.

  Postpone the fees associated with returning the vehicle.

  Possibly keep the same monthly payment or even lower it.

  Avoid paying any fees associated with a lease on a new vehicle, such as down payments or acquisition fees.

How a re-lease works:

  You choose a 12, 24, or 36-month term. Total lease term (from original inception) cannot exceed 84 months.

  Otherwise, the release works similarly to your current lease.