The Shocking Truth About Car Leases
Be honest, are you one of those people who just loves new cars? That's OK, many people love new cars just as much as you do. However, a good number of us hate overpaying. That is why I implore of you to be very mindful when it comes to car leases, and research all your options and find out whether buying or leasing is the solution. And I'm sure there are also a lot of us who would fess up that they have learned the hard way about the hidden costs that come with a lease. And they aren't what you think they are. Lets look at a few of them.
First, let's talk monthly lease payment. Did you know that there are unscrupulous car dealers out there who will blindly rip you off if you let them. Bingo. These dealers often decide your monthly payments based on their first impression of you and how much they think you are worth - not very honest at all, wouldn't you say? Make sure and question everything on the lease form and ask in depth questions as to why you should be paying what you are. The fine print can be your friend, use it against the car dealer to negotiate a better deal somewhere else.
Keep an eye on your mileage. This is huge, no two ways about it. A lot of people get wooed by the idea of a lease and it's low payments. However, these same people are living the high life until the day comes when they have to finally return their vehicle. The charges for overage miles can indeed shock the uninitiated. And when it's all over you'll be crying buckets on the way to the bank as you see the damage the lease had wrought on your account. Should you lease a vehicle, do not exceed the stipulated mileage.
Leases have no equity. Buying a car allows you (or maybe the bank, as they own the bank note) to own the vehicle. A car lease is not a way to build equity. You are, for all intents and purposes, renting the vehicle. Before you decide on a lease, do a compare on both equity costs and gains.
There are a ton of other hidden costs involved in car leases that make points #1-3 look small by comparison. Research.
First, let's talk monthly lease payment. Did you know that there are unscrupulous car dealers out there who will blindly rip you off if you let them. Bingo. These dealers often decide your monthly payments based on their first impression of you and how much they think you are worth - not very honest at all, wouldn't you say? Make sure and question everything on the lease form and ask in depth questions as to why you should be paying what you are. The fine print can be your friend, use it against the car dealer to negotiate a better deal somewhere else.
Keep an eye on your mileage. This is huge, no two ways about it. A lot of people get wooed by the idea of a lease and it's low payments. However, these same people are living the high life until the day comes when they have to finally return their vehicle. The charges for overage miles can indeed shock the uninitiated. And when it's all over you'll be crying buckets on the way to the bank as you see the damage the lease had wrought on your account. Should you lease a vehicle, do not exceed the stipulated mileage.
Leases have no equity. Buying a car allows you (or maybe the bank, as they own the bank note) to own the vehicle. A car lease is not a way to build equity. You are, for all intents and purposes, renting the vehicle. Before you decide on a lease, do a compare on both equity costs and gains.
There are a ton of other hidden costs involved in car leases that make points #1-3 look small by comparison. Research.