Bag the Best Deal on a New Car Lease

You have not come across this article by accident. You are reading this because you are thinking about leasing a car and you need help to bag the best deal on a new car lease. Car leasing may be the best option for you but it is something that should be examined carefully. Otherwise, you could end up finding yourself in a financial hole.

The Pros:

The good news is the car leasing is actually good because it has lower monthly rates compared to purchasing. When you buy, you have to come up with a lump sum of money for the down payment. You will also pay for the sales taxes and interest the company is charging annually. With a lease, you can pay a monthly rate based on the estimated resale value of the car after the lease. Hence, a car with poor resale value is going to cost more than a car with better resale value.

The Cons:

Of course, there also some disadvantages when leasing a car. For one, you will be responsible for the maintenance of the car – gas, oil changes, tune ups, tires, insurance and all the other things that are associated with car ownership. However, you don’t build equity for the car. It is just like renting a car except that you are expected to take charge of the maintenance and insurance.

Bagging a Good Car Leasing Deal

Car leases are not created uniformly. It is imperative to make comprehensive research about the lease programs available, what is inclusive and how much the lease is going to cost. Most leasing companies offer free mileage before the per-mileage charging starts. The free miles limit can go anywhere from 12,000 to 15,000 to miles. If you exceed this limit, you would have to pay 20 to 30 cents per mileage. Be sure to negotiate with the company about the mileage limit. 30 cents may seem like a small amount but if you exceed, say 4,000 miles on the mileage limit, you would have to pay 1,200 dollars more at the end of the lease.

If you want a really good car, make sure you check your credit score. This can have a large impact on the car and the leasing deal you may get.

Returning the Car before the Expiration of the Lease
Although this is not likely to happen, you have to ask the company if it is possible to return the car prematurely. Most car leasing companies would charge an early termination fee. If the car is from a large dealership, no penalty payments will be added to the early termination fee provided that the expiration is not more than six months ahead.

Take the time to do some research about your company car (in Danish firmabiler) leasing options. Go through the contract with a fine-tooth comb to make sure that there are no gaps in the leasing terms. You can save big from comparing terms and free mileage limits. Sometimes, cars have the same monthly rate but other programs may provide more free miles limits or lower early termination fees.