and where is a good place to look for cheap car leases
2007-01-20 18:46:46 · 9 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
Leasing is an alternative form of financing. Both have fixed terms and payments. With a purchase you finance the whole price of the vehicle and pay that amount, plus interest, back to the finance source. With a lease you also finance the full price of the vehicle, and pay all the interest. You only repay part of the principle of the loan. A lease has an estimated value of the vehicle at the end of the lease term. (Residual value) This is deducted from the principle and you only pay the difference in your monthly payments.
For example:
Assume a vehicle that costs $30,000 and a trade in worth $5000. Also assume you are financing, or leasing the vehicle for 5 years. A final assumption is that at the end of the 5-year period, the vehicle is worth $7500.
With a purchase you would pay back $25,000 plus interest over the period of the loan. You would own the vehicle (worth $7500) You can keep it, or trade it in on a new vehicle
With a lease you pay back $17,500 ($25,000- $7500 residual value), and the interest that is charged on the $25,000.
Your payment is less, but at the end of the term you have nothing!
With a lease there is a limit on the number of miles you can drive and a per mile charge after that. You are also responsible for any and all damage to the vehicle. At the end of the lease, when you turn the car in, you will have to pay for any and all damage and over miles charges!
With both a lease, and a purchase, you are responsible for all maintenance. Some leases, but not many, may have a maintenance program, but that does cost extra, and will increase your monthly payment.
Insurance in not included, just as it is not with a car loan. In most cases, leasing is going to cost you more (total cost not monthly payment) than buying will!
2007-01-20 20:07:54 · answer #1 · answered by fire4511 7 · 1⤊ 0⤋
No, the lease payment never includes insurance. Insurance on a leased car is usually higher than on one you own.
As far as getting a "cheap" lease, there's probably no such thing. They're going to get you one way or another -- either in the payments or the turn-in costs. You'll get whatever deal you are able to negotiate.
Unless you're a shrewd negotiator and know ALL about leasing (which you obviously don't given the question you asked) it's best to avoid them. Dealing with a car dealer is difficult enough; when you throw in leasing with it's strange lingo and confusing legalities the average customer is at an extreme disadvantage.
2007-01-20 21:07:48 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 1⤋
car insurance is not included with a lease or any car purchase.
lease is a lease, depends on the make and model of car. to get a lease you must have out standing credit, above average more or less. plus you have to put down normally around 1600 to 2000 dollars at the time of signing. plus there is a fee at the end when you turn in the vehicle for damage, mileage over, etc. mileage can run as much as 25 cents per mile over the allowed amount. and items like rock chips and scratches can be charged at a rate of $50 per chip. See it every day.
Unless you plan on driving the car almost no miles, drive like a grandma, always park in a garage, never do over 11,000 miles a year to be safe and never want to alter the car or stereo or anything....a lease is not for you.
2007-01-20 18:53:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A lease is a fleec, you will pay close to double for the car after the lease and you will be restricted on how many miles you drive. Don't do, buy a car that is 2-4 years old, let someone else take the hit for the depreciation of the car.
2007-01-20 18:56:34 · answer #4 · answered by 1TON 3 · 1⤊ 0⤋
At 17 you're putting your attractions way too severe. verify out issues like a Micra, Fiesta and a C1. there's a explanation why 17 12 months olds do no longer force around in BMWs or Land Rovers. the explanation is the cost of coverage. the only one you have any danger with is the concentration, however the cost of the motor vehicle and the coverage could probably exceed £5,000.
2016-11-25 23:34:23 · answer #5 · answered by ? 4 · 0⤊ 0⤋
you actually have to pay more to insure a leased car, you'll spend more over buying a car, i'm not lying, better buy the car then lease it
2007-01-20 18:50:01 · answer #6 · answered by MiKe Drazen 4 · 0⤊ 0⤋
Car auctions are better than lease, you find them at http://carauctions.deals-guide.com , I found it great hope you do to
2007-01-23 02:23:06 · answer #7 · answered by Kristina A 3 · 0⤊ 0⤋
Nope, you have to get that separate. (On anything you pay for)
2007-01-20 18:55:52 · answer #8 · answered by Haveitlookedat 5 · 0⤊ 0⤋
its depends up on your car model....
2007-01-21 15:22:55 · answer #9 · answered by saravanan mathivadhani suryakala 1 · 0⤊ 0⤋