What to Consider Before Leasing a Car

Some people choose to lease a car rather than buying one outright. Here are some useful tips on what to consider before leasing a car:

The most important thing to remember is that you do not own the vehicle. You get to use it but must return it at the end of the lease unless you choose to buy it.

Up-front costs may include the first month's payment, a refundable security deposit, taxes, registration and other fees and other charges.

Monthly lease payments are usually lower than monthly loan payments because you are paying only for the vehicle's depreciation during the lease term, plus rent charges (like interest), taxes and fees.

You are responsible for any early termination charges if you end the lease early.

You may return the vehicle at lease-end, pay any end-of-lease costs and "walk away."

The lessor has the risk of the future market value of the vehicle.

Most leases limit the number of miles you may drive (often 12,000-15,000 per year). You can negotiate a higher mileage limit and pay a higher monthly payment. You will likely have to pay charges for exceeding those limits if you return the vehicle.

Most leases limit wear to the vehicle during the lease term. You will likely have to pay extra charges for exceeding those limits if you return the vehicle.

At the end of the lease (typically 2-4 years), you may have a new payment either to finance the purchase of the existing vehicle or to lease another vehicle.

At the beginning of the lease, you may have to pay your first monthly payment; a refundable security deposit or your last monthly payment; other fees for licenses, registration, and title; a capitalized cost reduction; an acquisition fee; freight or destination charges and any applicable local taxes.

During the lease, you will have to pay your monthly payment; any additional taxes not included in the payment such as sales, use, and personal property taxes; insurance premiums; ongoing maintenance costs; and any fees for late payment. If you end your lease early, you may have to pay substantial early termination charges.

At the end of the lease , if you don't buy the vehicle, you may have to pay a disposition fee and charges for excess miles and excessive wear.

You may freely reprint this article provided the author's biography remains intact:

About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Leasing Information:

Related Articles

Landlord Tips And Tricks
Every real estate investor dealing in rental homes has done his own clean-up and fix-up, at least in the early years. Landlords also become very skilled at managing tenants after being burned a few times.
Basic Things You Should Know About A Lease Purchase Contract
What exactly is a contract?By definition, a contract is an agreement between two or more parties to do, or to refrain from doing, a particular thing in exchange for something valuable. The parties can be individuals, businesses, organizations and government agencies.
Dodging Leasings Grim Reaper: Navigating a Payment Default
In her third Harry Potter novel, ?The Prisoner of Azkaban?, J.K.
Interim Rent: Equipment Leasing's Trap Door
Many lessees enter into lease transactions that they believe are competitive based on faulty rate assumptions. Most lease rate calculations don't take interim rent into consideration.
So You Want to be a Landlord?
The residual income from owning rental properties may bring more money into your life than the fast flip in the long term. If nothing else, the stress is reduced because a well-chosen investment will pay for itself until you the market is ready for you to sell.
Lease Contracts - The Meaning of Joint and Several
When you see the phrase "joint and several" in alegal document or contract it means that that the partieson one side of the agreement are responsible individuallyand collectively for the terms of the agreement.Example: In the case of two tenants signing a lease agreement,"joint" means they are jointly responsible for the rent.
With a Lease, The Devil Is In The Details
In the last article we looked at a few of the things you should consider before leasing that first office or storefront for your business. To recap, you should not only consider the old standard "location, location, location," but also consider things like sufficient parking, the number of employees who will be working onsite, and future growth projections.
What Is A Lease?
There are different lease types, all with variable conditions and subject to the laws governing each state.
Ten Ways to Save a Bundle on Your Next Lease
According to the Equipment Leasing Association ("ELA"), U.S.
Venture Leasing: Startup Financing On the Rise
According to Pricewaterhouse Coopers, investment by institutional venture capitalists in startups grew from less than $3.0 billion at the beginning of the 1990's to over $106 billion in 2000.
Using Equipment Leasing as a Competitive Weapon
Most great generals know how to design winning battle plans. They also know how to use their resources to gain advantages over the enemy.
The Lease And Purchase Option
If you have an investment property, should you rent it or sell it? The answer to that question is that you should do both. If you have lots of time on your hands and are handy with tools, you can choose to rent out your property.
What to Consider Before Leasing a Car
Some people choose to lease a car rather than buying one outright. Here are some useful tips on what to consider before leasing a car:The most important thing to remember is that you do not own the vehicle.
Venture Leasing - A Smarter Way To Build Enterprise Value
In 2003, venture capitalists and investors dispensed over $18 billion to promising young U.S.
Ten Ways Start-ups Use Venture Leases And Loans To Generate Millions
The rise of venture leasing and lending has created an opportunity for sophisticated entrepreneurs to gain a competitive advantage. Savvy entrepreneurs are using venture leases and loans to generate millions of dollars for shareholders by leveraging existing venture capital.
Getting Your Venture Lease Approved
Each year venture capitalists fund more than 2,500 start-up companies in the U.S.
Equipment Leasing Blunders That Can Cost Your Firm a Mint
Rod McHenry, the financial vice president of a document imaging company, thought he had great cause for celebrating. He had signed an unbelievable $370,000 lease proposal covering computer servers, workstations, software and other networking equipment.
Ten Equipment Leasing Tips - Save a Bundle on Your Next Lease
According to the Equipment Leasing Association ("ELA"), U.S.
Increase Your Business Growth and Cash Flow Through Equipment Leasing
"If it can be manufactured, it can be leased." For the past decade or so, this statement has become more and more true to fact.
The Leverage of the Lease
In today's rapidly changing business environment it makes sense to consider all the options before paying for your business equipment - whether it's a photocopier, computer system, computer hardware or software, telephone system, security equipment, office furniture or anything else. Many business people will give great consideration to the actual purchase, getting quotes from different suppliers and considering different choices.