Contrary to conventional wisdom, you can negotiate a car lease just as you can negotiate a car purchase. If you're a potential lessee, you can negotiate the lease based on the lease term, mileage and future resale value; you can offer to pay less if the vehicle is newer, leased over a longer term, returned under anticipated mileage and has a high resale or residual value. Before entering into a lease, you should ascertain the residual value(s) of the vehicle(s) been considered.
Leasing a vehicle usually includes continued warranty and allows the lessee to drive a newer, more equipped vehicle for as much or less than monthly loan payments.
Instructions
1.
The two code methods for financing dewy vehicles are leasing and purchase loans. Buying a new vehicle means to purchase ownership of the vehicle regardless of value depreciation (the non-cash reduction in value of an asset resulting from age, wear and tear, or obsoleteness), use or mileage. Leasing, on the other hand, takes into consideration mileage, use and term of use.From a driver's perspective, purchase loans do not typically include routine maintenance and do not offset depreciation; they also have a limited warranty.2. By law, lease agreements must contain the vehicle's residual or resale value, depreciated amount, interest rate, capitalized cost (the recorded expense of an asset's cost), trade-in credit, taxes and up-front fees. Leases typically include a disposition fee (imposed at the end of the lease) ranging from $300 to $400 and an acquisition fee between $250 and $450, and they might contain a purchase option fee.
Although you can negotiate the lease term and leverage a better lease payment with a high-valued trade-in, other costs such as taxes and government fees cannot be negotiated. It's very important to take care of the vehicle while under the lease term, as leases often contain costly repair terms or repairs beyond the scope of the warranty.
3. During the leasing process, you should make certain that the lease contains a provision for "gap" insurance, also known as guaranteed asset protection. This insurance specifically covers all remaining lease payments should the vehicle be totaled or stolen. If the lease does not contain gap insurance, you will have to assume full responsibility in the event the vehicle is totaled in a collision or stolen. You should also be aware that leases prohibit any installation of aftermarket parts or accessories; these can include but are not limited to trailer hitches or exterior trim.
