You are ready to have a car but buying one is the issue. So you turn to leasing. You might have heard the typical “short/long-term” lease or “used car” lease but here are a few more specific options for you that you should be informed about.
Open-End Leases
A less common lease, this type of lease is used by businesses or those who find themselves traveling more than others. Consumers should expect:
- Higher monthly payments
- Having to pay for depreciation if car is under market value
- If car does not depreciate, you may not be required to pay additional fees
- Quicker depreciation due to excessive wear or mileage
- No mileage restrictions
Close-End Leases
A most common lease consumers go for, where at end of lease you can “walk away”. It entails the usual:
- Good credit gives you the chance of lower monthly payments
- Agreeing to the fixed number of years lease contract states
- Keeping up with required maintenance of car
- Staying within pre-determined mileage
- Returning car to dealership at end of the lease
“Option to Buy” Lease
This leasing option, particularly for new car leases, gives you the option to purchase the car at the end of the lease. Here are a couple tips towards the end of this lease:
- When going over “option to buy” pricing, make sure to negotiate price and have it listed in the contract before signing. Is the negotiated price higher or lower than the car’s market value?
- At the end of the lease, you can either pay cash to buy the car or finance the buyout price
- If you decide to finance, be sure to negotiate interest rates.
Single-Payment Lease
Speaking of cash, this is where the single-payment lease comes in. Did you know you have the option to put a large amount of cash money down on a lease?
- You can pay entire sum of the lease when you sign. This helps get rid of monthly payments and can possibly help eliminate most of the monthly interests.
- Paying a large amount up front can help you catch a better deal on your purchase price
- Finance rates will be lower and the chances of getting approved for this lease is better
- With this lease, all the costs will be presented up front in the contract so you can see all the fees and other costs
Subvented Lease
This type of lease is quite unique. Offered by finance companies associated with a particular manufacturer, these leases are available because automakers need to get their inventory moving, especially those in low demand. With this lease:
- It may only be available to those with great to excellent credit
- If you qualify, it can save you a lot of money
- Interest rates are lower
- Estimated depreciation is lower, which can lead to lower monthly payments.
Now that you got a little insight on these numerous leasing options, it still can be scary and might get you confused in which option to go for. Luckily, Swapalease.com can help! Swapalease.com is the online marketplace with vehicles and customers in every state in the continental United States and Canada. For more information on finding the best car lease deals or to learn how you can have a successful car lease trade, visit Swapalease.com or contact them at 866-SWAPNOW.