Leasing a car is a wonderful way of care-free car non-ownership. You get a drive a new car every 2 to 3 years and you aren’t either liable to do the repairs unless they give you a problem. However, leasing a car isn’t a piece of cake all those ads would have you believe. Leasing agreements can vary greatly from one dealership to another, so it is important to understand the agreements and of course shop around for what you need. Also, before signing on that dotted line, you should read the fine print.
Many little details can make leasing a car, an ugly smear on your credit report and bank account. There are many questions that you need to find the answers for and if you are thinking about what to ask when leasing a car. Then you need not worry when as we are here for help. We are Oz Leasing and have been in the industry for over a decade offering an online leasing facility. Here in this blog post, we will discuss the questions to ask when leasing a car.
Which is better, lease or buy a car?
The answer to this question is, it depends. If you drive a lot of miles annually or you would like to keep your vehicle for a long time, then car leasing might not be your best option. However, if you look forward to driving a new car every two to three years and aren’t interested in the trade-in/selling process of your current car, you could be a prime candidate for a car lease. But, the difference between auto car leasing or buying comes down to your financial, automotive, and personal needs.
How long is the lease for?
Most car lease agreements are for two, three, or four years. You need to think about which option suits you best. When you are looking to lease a car and have finalized the one, ask what lease contract lengths are available for that model. We usually recommend two or three years, but if you find better deals on other terms we include those as well.
What are some of the jargon I should know?
When leasing a car there are certain terms you need to be aware of which are as mentioned below.
MSRP – The Manufacturer’s Suggested Retail Price or sticker price, it is set by the car company. It is a recommended selling price that dealers use to sell each vehicle. It is different from invoice price on a car and can vary from dealer to dealer.
Capitalized Cost – The price of the car is known as capitalized cost. You must know about it when leasing a car because it would help in negotiating. Negotiate on this as much as you can while leasing a car because the lower capitalized cost will ultimately result in a lower monthly installment.
Money Factor – Also called a leasefactor. lower this number, the better. Dealers are sometimes unwilling to reveal the money factor, so be persistent.
Residual Value – It is the value of the car at the end of the lease. An inflated residual value lowers your monthly payments, but it can also handcuff you. A realistic residual value will make it easier to sell the lease, trade your car mid-lease, or buy the car at the end of the lease.
How much mileage is included?
All car leasing deals have a certain amount of mileage included. You can specify how much mileage you need in your lease agreement. We include 10,000 mileage in our agreements, but it can be customized as per your needs. They can start from 5,000 per year up to 30,000. We recommend going for a realistic range.
Are servicing and maintenance included?
Some of our car leasing contracts have service and maintenance included for an additional cost and are displayed on the individual car offer pages. Maintenance is included in your monthly payments, such as all servicing, tires replacement, and other routine maintenance needed.
Do I need GAP insurance?
This is the most important question to ask when leasing a car. You would want to purchase GAP insurance, this is because in case your car gets written off, or is stolen, GAP insurance will cover the cost that your insurance company won’t pay out for.
What happens at the end of the lease?
When your lease ends, the car dealer will check for fair wear and tear and is returned to the manufacturer. However, if they find any significant issues, then you would need to pay extra for the repairs.
What are excess mileage charges?
If you go over your agreed mileage, you will need to pay extra charges. So, you must know about it before. Mileage charges vary depending on the manufacturer so it’s definitely worth asking.
So, these are some of the questions to ask when leasing a car. If you are looking for great leasing deals, then Oz Leasing offers you many. You can lease a car online easily, compare, and save your time. Visit our website to see how it works.