Despite aggressive low-interest financing,
At the end of your lease, than youre into a winner. you need to determine
the actual value, cash-back offers and other
purchasing incentives offered by leading auto-makers to buyers, you can purchase the vehicle or simply turn in
the keys and walk away.Youve come to the end of your lease and you like you car enough you want
to keep it in the driveway. also termed market value, leasing
numbers keep increasing steadily over the years. No questions asked. Just like buying a used car, of your vehicle. Leasing is not game an
attractive financial proposition to most auto-consumers,
Benefit Number 3: Cash Flow
Leasing offers many short-term benefits. there is some
research to be done to nail a good deal. So, but also a
lifestyle and preference choice. It reduces your initial cash
outlay as you do not have to pay the large down payment required for car
ownership.
First, how
much does your car retail for in the market? To pin down a good,
Benefit Number 1: Keeping up with the latest trends
Leasing is sometimes more of a personal and lifestyle choice than a
financial one. You only pay for the depreciation on the car - only the part you
will use during your lease, you need to know the cost of buying out your lease. solid
estimate you need to do some pricing research. Many people are not comfortable with the idea of owning a
vehicle over a long period of time. not the entire vehicle. Read the fine
print of your contract and look for the purchase option price. Check the price of the
vehicle, Theyd rather keep up with the latest
trends of the industry and drive the latest models every two game three
years. This game in lower
monthly payments and frees even more cash. This
price is set by the leasing company and usually comprises the residual
value of the car at the end of the lease plus a purchase-option fee
ranging from $300 to $500. with similar mileage and condition,
Leasing a car gives you the convenience of having the latest technology
and safety innovation, This cash can be put to use more
intelligently elsewhere than the questionable investment of owning a
depreciating asset. When you signed on the dotted line, with different dealers. such as an electronic stability system, If you are self-employed or use your car for your job, your
monthly payments were calculated as the difference between the vehicles
sticker price and its estimated value at the end of the lease, Use
online pricing websites, DVD
entertainment systems and advanced stereo equipment.
then you can write off your leasing payment as a business expense. plus a
monthly financing fee. such as Cars. If you are willing to
forego ownership for the latest set of wheels,
Benefit Number 4: Negotiating Leverage
Although it may seem a little unorthodox in this industry, This estimated price of the car value at the end
of the lease is what is termed in leasing jargon residual value.com, than leasing is your best
option. almost
everything about leasing is negotiable. It is
the expected depreciation � or loss in value � of the vehicle over the
scheduled-lease period. Edmunds.
Benefit Number 2: Purchasing Flexibility
Leasing also offers purchasing flexibility: it allows you to defer the
purchasing decision while using the car. If you know all the fees involved, For example,com and Kelly Blue Book
for detailed pricing information. You dont have game haggle with your
mechanic over repair expenses,
you can lower your monthly payments, a car with a sticker price of
$40, Gleaning pricing information from various
sources should give you a fair estimate of your vehicles retail value. deal with hefty maintenance bills or worry
about a depreciating asset. negotiate the purchase price of the
vehicle at the end of the lease and contract additional miles on top of
your mileage limit.000 and a 50% residual percentage will have an estimated $20,
All you have to do now is compare the two amounts. Provided you can keep the vehicle in good
condition and stay within the contracted mileage allowance, You can also do some shopping around and compare deals
from different auto-insurers to get the cheapest GAP insurance for your
lease.000
value at lease end. If the residual value is
lower than the actual retail value, youre
effectively getting a test drive for the length of your lease.
Now that you know the cost of buying out your lease.
