Directly on the lease contract, there is an area that discusses the options that you have at the end of your lease. You should begin looking at cars and the options available at minimum 6 months prior to your lease termination and ideally a year in advance. Waiting to the last minute can become costly, both financially and mentally. Avoid this unnecessary strain by planning ahead and answering a few questions…
You love your vehicle and you can’t imagine wanting to return it early. However there are some life circumstances that you cannot predict or control which may dramatically alter your vehicle needs. Picture this…you go to work and find out that you’ve just been given a promotion. However, the promotion means that you will be transferred out of the country for the next two years. Or surprise, you’re pregnant and you’re driving a convertible with no back seat.
The one thing that is a constant is change. A lease is a set payment for anywhere from 2-6 years depending on your contract. If one of the above scenarios occurs, you will be frantically checking for ways on how to break your contract. However, you want to do it in a fashion that financially makes sense.
If this is your first vehicle, think of other large purchases that you have bought? Are you the type of individual to always want the next best thing? Do you constantly upgrade your phone and were you hungering for that new IPod? If so, you may enjoy the fact that with leasing you can receive a brand new vehicle every two to six years depending on your contract term.
Whether it’s Future Shop, Sears or your local appliance store: everywhere is offering extended warranties. When purchasing a warranty for a washer, dryer or a new computer it is a fairly easy decision. Is $50-$200 extra worth the peace of mind for another year? For the majority of buyers, it’s a quick response: usually based on the cost of the warranty. Sadly, this is also how quickly a decision is made for extended warranty on a vehicle. When the cost of a warranty can range anywhere from $700-$3000, the buyer often quickly responds no. Don’t be this buyer! Extended warranty is not for everyone. However, having the additional coverage provides peace of mind and makes financial sense for a lot of consumers.
If a deal sounds too good to be true, it probably is. Advertising is designed to whet the consumer’s appetite and get you into the store eager to buy that new product. In a print ad there will be a bold statement announcing the fantastic savings you will experience. However, it is the fine print that contains all of the information:
A dealer’s goal is to make a profit. The majority of sales people are on commission which means that they only make profit from the sales that they make. The following are some ways that dealerships may earn a profit from your deal:
1) The difference between the invoice (wholesale) price of the vehicle and the amount the vehicle is sold for
Credit Insurance is a protect for the unexpected negative events in life: such as death, disability and job loss. Purchasing this insurance will help protect your credit rating and provide an additional peace of mind to the consumer who may be concerned about unpredictable events. The dealership will often discuss these optional insurances with you when you are finalizing your lease agreement.
Leasing a new car should be an exciting and exhilarating experience. After all, you have taken the time to choose the car model, colour and style that best suits your needs. When you leave the dealership you will be driving away a brand new shiny vehicle. But don’t get too caught up in the excitement and forget to read the contract. Why is it that we spend so much time picking a colour yet only a few minutes to glance at the contract? Do not make this error and be locked into a contract for 3-6 years that doesn’t suit your needs.
If you’re searching for a way to figure out what your next lease will cost, then you will be happy to know there is a simple and easy way. It’s called the auto leasing calculator and it’s a great tool that can be very useful. There are different types of auto leasing calculators, ranging from the basic standard formula to the more complicated ones that allow you to compare leasing a vehicle to buying one.
New car leasing is steadily becoming one of the best ways to have a new, modern vehicle to enjoy all the time. It can also be a great way to have a brand new car when you wouldn’t otherwise be able to afford it. Many people don’t realize they have the option of leasing a vehicle instead of buying one or they have some misconception about leasing that keeps them from taking advantage of this great opportunity.