Christian Car Lease Specials
Negotiating wise Christian car lease specials can be a proactive move toward building a positive financial portfolio. Being prepared and researching before starting to negotiate with the auto dealer will enable the purchaser to sign the most beneficial leasing package available to them. It is vitally important for individuals to familiarize themselves with the leasing process, as it is vastly different from buying a new or used vehicle. Giving considerable thought to the make and model of the vehicle a person wishes to discuss will allow her to come in, already informed as to the acceptable price for the automobile. Looking online is a great way to find the MSRP (manufacturer's suggested retail price) for the vehicle or vehicles someone is wishing to buy. A good price to pay for a vehicle is 400 to 500 dollars under the manufacturer's suggested retail price for the automobile. Up to 800 dollars off of the MSRP is astounding. The wise shopper must be prepared to wager in order to arrive at this price.
Regardless of the car lease specials that a new automobile dealership is offering, someone interested in leasing a vehicle should never choose a leasing package of over 36 months. After 36 months, the warranty has expired, so leasing then becomes much more financially risky than before. Leases are typically either 24 months or 36 months in length. Though the monthly payment may be the bottom line when actually buying a new vehicle, the negotiating sale price of the automobile is what is of most importance when arbitrating a leasing package. The sales person will inevitably offer a price much higher than the individual had decided on through researching the manufacturer's suggested retail price. The shopper should feel free to haggle, as it is already expected among the automobile sales industry.
In many ways utilizing car lease specials is less complicated and involved than searching for the best lender to finance the price of a new vehicle. With standard loans, a person's credit will come into question. The better credit score they have, the more likely they are to get lower interest rates, resulting in lower monthly payments. This is not the case in leasing a vehicle. The automobile company, not the dealership, uses a complicated formula to decide on a finance percentage. It is called the money factor and decides how much the monthly payment will be. Banks and other standard lending institutions do not typically offer leasing options or financing other than for the purchase of an automobile, so price comparison and rate shopping are not necessary in a leasing situation like they are when financing the purchase of a vehicle. The only comparison shopping that could be helpful is researching the rebates that may be part of car lease specials. Some dealerships offer rebates for recent graduates, leasing a particular make of car, etc. These rebates can be from 500 to 1000 dollars, which is a sizable savings to the leaser.
Mileage is also a big part of the leasing package being negotiated. Typically, a leasing agreement will offer either 12,000 miles or 15,000 miles a year. The monetary difference between these car lease specials is only about 50 to 100 dollars a year. Because the difference is minimal, many leasers tend to lean toward the higher mileage packages. However, at the end the dealership often forgives the miles driven over the agreed amount if the leaser signs another lease agreement with them. Otherwise, most dealerships can charge up to 35 or 40 cents per mile driven over the agreed upon amount. It pays to know whether or not someone plans to continue leasing, which would give her more leverage at the end of the lease, or if this is a onetime event. If this is the one and only vehicle a person plans on leasing, paying for the extra mileage is definitely advisable.
When discussing leasing options with a salesperson, a shopper should make sure that all of the following information has been discussed at length: terms of the lease, mileage allowance, negotiated lease price, manufacturer's suggested retail price, monthly payment amount and the acquisition fee. The acquisition fee is not negotiable, and is a price set by the automobile maker, not the dealership. Having all of this information is vital. There are a number of lease calculators available for free on the Internet. The auto financing shopper can key in all the pertinent information to see if the price the dealership offered is competitive with other car lease specials. If so, he can sign the agreement in good faith. If not, leases are negotiable, and he is free to continue arbitration until a mutually beneficial package is created.
When all is said and done, if better car lease specials arise, re-leasing a vehicle may be an option. This is akin to refinancing a home at a better interest rate or for better terms. The initial stage of this process involves calling the original leasing dealership to get the buyout amount. Much like in refinancing a home, the new leasing dealership will pay off an existing lease before contracting for a new one. An individual can call around to local car dealerships to see if they are offering a better money factor for his pay off amount. He should also compare the terms. If someone would like to pay off their lease early, but are not concerned with the monthly payment amount, refinancing to a 12 month agreement from a 24 month one would be worth the effort. In addition, different car lease specials offer other pay off amounts. If an individual plans on keeping their car after the pay off, this information is of utmost importance. "The rich man's wealth is his strong city, and as a high wall in his own conceit." (Proverbs 18:11)
Christian Car Lease CompaniesCar lease companies offer great deals online for the individual who wants to benefit from the advantages that leasing provides over buying. Manufacturers often provide incentives to make renting more attractive over buying such as below market interest rates and lower up-front costs. Leasing a car is less expensive than buying when considering the amount of a monthly payment. Many drivers opt to rent over buying because they like to drive a new and more expensive car. After the lease period runs out they can just trade it in for a new model or a totally different vehicle of their choice. Car lease companies do require that the vehicle be kept in good running condition with reasonable mileage. At the end of the lease the person renting has the choice of purchasing the automobile if so desired.
Individuals who rent an auto often do so because there is less hassle with renting compared to buying. After buying an auto the owner has to worry about trade-in value and possible negative equity when trading for a different one. Negative equity is where more is owed on the automobile than the fair market value. When trading in a vehicle, the difference left over on the loan amount is attached to the new auto agreement. Car lease companies make it easier on the individual by allowing them to just turn the car in if he or she chooses to do so at the end of the contract. "And I thought to advertise thee, saying, Buy before the inhabitants, and before the elders of my people. If thou wilt redeem it, redeem it: but if thou wilt not redeem it, then tell me, that I may know: for there is none to redeem beside thee; and I am after thee. And he said, I will redeem it." (Ruth 4:4)
A driver has a couple of options when leasing a vehicle, a closed-end or an open-end lease. A closed-end lease means that the value of the vehicle after the rental period is determined beforehand. At the end of the rental period if the individual chooses to purchase the car he or she will pay the value determined beforehand in addition to an administrative fee. The closed-end lease is the most popular type of rental agreement with car lease companies because there is usually less costs to the driver compared to other options.
Open-end lease means that the value of the vehicle is estimated after the rental agreement is up but at the actual end of the agreement the difference between the actual market value and the estimated value is owed by the person renting. Open-end leasing is the least popular type of rental agreement because sometimes the difference between the market value and the estimate value can add up to a lot. Car lease companies do not often point out the disadvantages to different options or other things that can make renting undesirable.
Terminating a rental agreement early can make the driver liable for the amount left on the depreciation. Some car lease companies penalize a driver for terminating an agreement early as they require the remainder of the rental agreement to be paid even if the vehicle has been turned back in. An early termination fee may also be applicable in this type of situation. Overall when renting an automobile a driver should stay the course until the agreement is finalized. The early termination fee can be substantial. A driver should read all the fine print in an automobile lease agreement before signing a contract.
Credit requirements for renting a vehicle are strict compared to buying. Car lease companies view someone who has a higher credit score as a more responsible person who will probably make payments on time and not trash the vehicle. Before opting to rent an automobile get a copy of credit reports from the three major credit bureaus and look over the reports for errors. Correcting negative information can help to raise credit scores. This can be done by filling out a dispute form or writing a letter to the bureau where the error exists. The credit bureau has 30 days to investigate the dispute and answer back. If the creditor of the account in question does not answer within the 30 days the item should be removed from the credit report. Follow up is very important with disputes in order to make sure that the corrections are made.
Mileage limitations and disposition fees are usually associated with renting. Going over the mileage noted in the agreement will mean paying so many cents per mile in fees when it is time to turn the car in. Car lease companies are usually very strict about the mileage requirements and limitations because the higher mileage makes the value of the vehicle less. Companies who rent vehicles may verbally suggest that the mileage fees are negotiable. If this is true the contract should reflect that. A disposition fee is charged to the driver who does not opt to purchase the automobile once the agreement is complete.
Beware of the cap cost set by the Christian dealership that makes up the rental agreement. The cap cost is the amount set by the dealership to sell the car to the rental company. This can make a difference on how high the monthly payment goes up. The cap cost should not be the same amount as the sticker price on the car but instead should be less. The dealership does have the right to receive a margin above the cost so that they make some money off of the automobile. Their cost should cover their margin of rent, utilities, salaries, and so on. Factory rebates and other incentives should be applied to the cap cost so that the person renting gets the benefit entitled to him or her.