Ten Auto Leasing Tips to Consider
According to the Office of the Attorney General, there is no such thing as a three-day cooling off period or cancellation rights when leasing or buying a new or used car. You are responsible to make all the payments once you sign a contract. So before leasing an automobile, consider the following auto leasing tips.
Auto Leasing Tip #1
Understand in advance that leasing an auto and exercising the purchase option plan is more expensive than buying an auto outright.
Auto Leasing Tip #2
When considering leasing an auto, it is wise to request disclosure of the capitalized cost and finance rate. Be sure to negotiate the lowest capitalized cost and financing rate possible.
Auto Leasing Tip # 3
Inquire and understand all pertinent information on all rebates, cash down, trade-in value, and all other payments toward the auto lease. These adjustments should be reflected in the cap cost.
Auto Leasing Tip # 4
Examine the extended warranties and do not purchase any additional contracts that duplicate the manufacturer's warranty or provide coverage beyond the lease term of the auto.
Auto Leasing Tip # 5
Look for extra products and services such as extended service contracts and credit and disability life insurance sometimes added into your auto lease payment by the dealer without your approval.
Auto Leasing Tip # 6
Be aware that some auto leases have specific conditions such as security deposits, leases longer than four years, additional charges for exceeding mileage allowances and auto leases that require you to purchase extra products and services.
Auto Leasing Tip # 7
Once all information is gathered, compare the total cost of leasing the automobile to the total price of purchasing.
Auto Leasing Tip # 8
If you have a trade-in, know the "blue book value" of the automobile by comparing the wholesale and retail prices in the Kelly Blue Book (KBB) or the National Auto Dealers Association (NADA). These guides are available at banks, credit unions, the library and the Internet, like myAutoloan.com. You'll want your trade-in to be reflected in the auto lease transaction.
Auto Leasing Tip # 9
Understand that early termination or pre-payment of an auto lease are expensive options. When leasing an auto, you can't simply pay-off or turn the car back in.
Auto Leasing Tip # 10
As with any contract, do not sign an automobile lease agreement until you have read and understand all the terms thoroughly.
At myAutoloan.com we want you to know and understand all your automobile options. As in Tip # 7 to Auto Leasing, you should see the difference in cost between leasing and purchasing an automobile by applying for a loan online. There is no obligation or fee.
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