Those new to car leasing need not feel intimidated anymore as we have listed here some of the most pertinent questions to ask the dealer to determine if you really need to lease a car or not.
- The residual value of the car? It is the final cost of the car after the lease is over and it is determined by the leasing company. You must go for cars with a high residual value of at least 45 to 55 % of the original value because the residual value will affect your monthly payment.
- What mileage is covered by the lease? The industry standard for this is 12,000 miles a year but not all leases comply. So, if you get a lease with less mileage than you need you will end up paying anything between 15-20 cents per mile.
- Enquire the interest rate: Do not be taken in by the cheap van leasing deals with low-interest rates advertised by certain companies because interest rates are often based on your credit score. Normally company quotes interest rate in the form of a decimal number like 0.00125 which you think is too small to pay heed to. But in reality, it has to be multiplied with 2400 to get the percentage of interest.
- What are the fees involved? There are certain fees like the security deposits and the fees itself which can be negotiated. If you are able to waive off the security deposit and reduce the fee amount then in your final math you will know which side the balance tips. Remember, until you ask you won’t get.
- Can the lease be transferred? At times you don’t want to be stuck to the same model and want some change. Hence, it is paramount that you ask your leasing company if your lease can be transferred to a new owner before time. Nowadays most companies offer this flexibility but you need to be certain it is mentioned in the contract.
Your answers to these questions will help you decide if leasing is right for you.