Both business and personal car leasing are emerging as the best and cheapest way to ‘own’ a car, so to speak. Even a luxury car can be yours to drive and enjoy through say, a lucrative Mercedes car leasing deal or an Audi car lease, as your heart desires.
But when it comes to the cost of the car lease, should you be at the mercy of the car manufacturer or the finance company? Are you supposed to blindly accept all the terms and conditions that the leasing company specifies in the contract? How will you wade through the legalese to understand whether you truly benefit from the car leasing deal and if so, to what extent?
Well, those new to cars leasing should also be aware that they can actually negotiate the cost of a car lease, just like they would parley over the price of a new car, so to speak! And this will be based on different aspects just like when purchasing a car.
To begin with, it’s pretty much obvious to everyone that the best way to keep lease payments low is to opt for a lower priced. For instance, a Seat Ateca Lease will definitely be much easier on the pocket than an Audi lease!
But if you are interested in high-cost, luxury vehicles, another trick is to look for cars that generally have a good residual value. A higher resale value at the end of the lease contract ensures lower lease payments than those cars that have low residual value. To gauge the residual value, you can either check a used-car pricing guide or consult with the loan department of your bank.
You will also need to estimate your car usage and choose the mileage limitations accordingly; always keep in mind that excess mileage can attract heavy penalties at times.
Apart from this, make sure that you understand the fine print of your say, Mercedes leasing deal contract so that there are no rude shocks later on. At the outset, check out the terms like capitalized cost, interest rate, up-front fees and taxes, the vehicle’s residual value and the amount that will be depreciated. Ascertain the acquisition fee and disposition fee that will be levied on you.
Check if there is a purchase option fee should you decide to purchase the cars at the end of the lease contract and also if any fees will be charged on the same. Also determine if there are any unreasonable early termination charges or if any credit is provided for used-car trade-ins.
Remember that undue wear or damage to the vehicle is generally chargeable on the return. Therefore, it will be wise to understand what exactly constitutes ‘excessive wear and tear’ at the outset itself. Also, check if you have the liberty to customize the vehicle or not.
So, do your homework carefully as only then can you truly enjoy a leased car!