Those who are not much aware about the car leasing options, they need to focus on this article. Just prior to reading, be aware of the fact that leasing a car is way better and advantageous than purchasing a vehicle. It is definitely a more affordable option to go for. Also, there would never be any worry about the maintenance costing part. There would always have options to quite the lease and opt for newer models or other makes. However, prior to going for a lease agreement, there are certain factors to keep in mind. When facing the dealer, there are certain questions that need to be placed before in order to have clear understanding about the scenario. Also, it is necessary to ensure that the monthly payment for the lease happens to be on the lower side.
First question to place: Are there any special offer available on the lease?
There are several car manufacturers available those who offer great deals and offers on vehicle leasing for newer models. This is a smart strategy to improve on the sales part for these models. Also, several models that don’t find many buyers are given for attractive lease rates as a necessary advertisement mode. If such special deals and offers could be availed, then it would become great way to enjoy the privilege of luxury car ride at very minimal monthly lease rates. However, it is also necessary to check thoroughly the fine print for the lease offer and deal. Go through the guidelines and instructions carefully. Look carefully to figure out whether there happens to be any kind of additional expenses or not. In most common scenarios, the monthly payment part doesn’t include taxation part as well drive-off fee structure. Be very specific with these parts and question the dealer regarding the part to have a clear view.
Next point to focus at: what would be the residual valuation of the car?
This is an extremely important issue to consider. A car with high residual value would most likely to offer great value for money. The residual value of a car would depict the valuation of the vehicle post the lease period. Basically, there would be estimation for the amount with 10 percent on tolerance limit.
Let’s take up a common example: When a person is leasing a certain car, he/she is paying the total amount of the car’s overall valuation for the time period being used. Say, if the person leases a $30,000 vehicle for three years, the total worth would be around $18,000 at the end of three years. What this highlight is the fact that the person has used estimated $12,000 of the entire car’s valuation. Now, get that amount divided by 36 months and the amount left is $333. This amount ($333) would be the monthly payment approximately. There would be additional interest rate and taxes to be levied upon this amount. Some of the car manufacturers might give discount on the interest and tax part. However, go through the terms and conditions of lease agreement carefully prior to signing the deal.
Author Bio: Vanessa Coelho is an automobile engineer and expert reviewer. She has been one of the leading reviewers for different car makes over the last six years. She has written reviews for reputed sites like leasequit.com where her primary focus is to pinpoint on different aspects of car leasing. In this article, she has focused on two crucial points that a person must place before the car manufacturer prior to leasing a vehicle and signing any agreement.