How to find a good leasing car

Leasing is considered the cheapest ticket to keep up with the hottest cars and trends in the industry. The jury is still out on leasing, however: Because the industry has a lot of hype and little detail, it's hard to tell the difference between a good deal and a real good deal.

So how do you spot a good deal?

First you need to find out if there is a down payment on the car lease. A down payment is a lump sum that you pay up front in cash, overdraft credit, or through trade allowances to reduce your monthly payment. 

 leasing a car

You should think twice about putting money down on a rental: not only are you getting a tough deal because you're essentially giving up the general rule of leasing to not put money up front, but there's also no money due at the end of the lease. . There is another big disadvantage: if your car is damaged or stolen, insurance costs and defects will not cover the losses.

Mileage limits

Most leasing companies will give you a limit of 45,000 free miles over a three-year lease term. This may seem like a good deal at first glance, but when you consider that it only covers 15,000 miles over a 12-month period, it's easy to see why it might be difficult to stay within that limit. Even people who work from home have no problem putting 15,000 miles on their cars. 

If you exceed the mileage limit, the fine for each mile exceeded can be up to 20 cents. This can add up quickly over the life of the lease: an extra 4,000 miles per year over the life of a three-year lease will cost you an extra $2,400 in excess mileage fees! Before you sign a contract, be realistic about your mileage needs, especially if you regularly drive long distances. Consider saving up the miles you plan to use because it's cheaper to contract for extras before signing than to pay extra fees at the end of the lease.

Sales tax

Sales tax is usually capitalized and added to monthly payments. However, some dealers choose not to include this in their calculations in order to lower their advertised lease payments. Instead, they write in fine print that the monthly payment does not include “sales tax.” Be sure to read the fine print carefully for any additional hidden costs that are not included in the advertised monthly payment. Unfair fees that usually fly under the radar include sales tax, registration fees, and title fees.

Source: presidentsjournal.blogspot.com

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