As you enter a dealership beautiful vehicles are gleaming at every corner. Walking trance like from car to car, you are approached by a “Sales Person”. Words ooze out of the sales person mouth, each one sounding more and more enticing… making you want everything. “Come with me” she says as she ushers you into the Business office.
Auto leasing has become very popular for many people today. With the help of a company called LeaseMonster, leasing a car is not only going to be much easier but much more fun as well, Although some people still choose to buy their new or used cars or feel leasing a car has disadvantages, there are many advantages to leasing a car including:
The amount of insurance products available for your vehicle can be overwhelming. Each dealership will have an opinion on which product is the “must have” insurance. Be cautious: as at times the “must have” product is really the one that pays the dealership the most income. This article will attempt to dissect the main “add-on” products that are available for your vehicle. To determine which one is right for you, you will need to become informed on what is covered in the limited warranty and if you decide to purchase it, the extended warranty. Duplicating warranty coverage is equivalent to flushing money down your toilet.
A sales person is basically your real estate broker for a vehicle. They will show you all the available models, point out the highlights and features and work until they find the best car for you. A good sales person will use their expertise to match your needs and wants to the appropriate car.
Once you’ve selected your vehicle you will be introduced to the business manager. The sales representative may have committed to a price for you: the business manager will outline exactly what that price will include.
In the business office, you may discuss other options such as warranties, various insurance options to protect both you and your vehicle, and other items that you may want to add on to your vehicle. This is the area where your deal is finalized and your contract is printed and signed.
One of the biggest misconceptions with leases is that you are paying an interest rate. This confusion is partly due to advertizing and partly due to a lack of understanding of how leases worked.
Dealers will not explain this to you for a few possible reasons:
One of the benefits of leasing is that you only pay for the time period that you are using the vehicle. In a closed ended lease, you have minimal if any expense at the end of the lease and can return the vehicle. This being said, why is it important to know how residual value works?
In Residual values 101 we covered the basics of residual values and how it will have a direct impact on your lease. But did you ever wonder where these numbers came from? This article will describe how two of the larger residual value companies: Black book and Automotive Lease Guide get their numbers.
On average there are two types of lease contracts: Open end and Closed End Lease contract. As a buyer, it is critical that you are aware of which type of contract you are signing and the potential risks and benefits of each contract.
Ensuring that you get the best price for your lease
At LeaseMonster our mission to ensure that consumers get the best price for your vehicle. To do this, we have provided a variety of ways that you the consumer can a) communicate with each other and b) receive a variety of bids from dealers.
However, this process will only be fully successful if you the consumer understand what you need to know in order to bid for the best price for you.
Before you begin negotiating, you must understand how a lease works, your obligation in the lease and what the best lease scenario is for you. Remember each situation is unique and what is a good price for you may not be the best one for you.
You’ve enjoyed driving your vehicle for the past two to six years, and now it is time to return the car. So what happens? On average there are three parts to the lease return process: the pre-inspection report, returning your vehicle to the dealership, and the final inspection report…