Guide To Car Leases

Car Leases

A Guide To Car Leases.

By: Jimmy Sturo

Auto leasing is gaining popularity among consumers because it offers them a way to drive the cars they want - often better cars than they can afford to buy. Low monthly payments for driving the latest models are a big attraction for many people. Leasing may not fit everybody's needs and lifestyle. For consumers interested in leasing a new car, it is recommended that they understand the various aspects of leasing. In the absence of adequate information, consumers could end up paying much more.

Leasing is a method of paying for the use of a car over a specified period of time. The amount to be paid by an individual leasing a car depends on leasing company's estimation of the vehicle's depreciation. Depreciation is calculated by subtracting a car's value at the end of the lease period from its original value. There are some models of cars whose value depreciates more than others and typically, the lower the depreciation of a model's value the cheaper are the costs of leasing it. Several leasing companies offer better payment terms to customers who lease models that are less susceptible to high depreciation on value.

Most luxury cars have low depreciation values and a better resale market. European and Japanese cars have a lower depreciation rates as compared to American cars.

It is advisable to choose a shorter lease period to optimize the warranty of the vehicle. When the duration of lease period is long, the leased car's value will decrease by the time the lease ends.

Consumers should exercise the option of choosing a leasing company that is not affiliated with the car dealer, as they are usually subsidiaries of the car manufacturer such as Ford Motor Credit or General Motors Acceptance Corporation (GMAC).

Once a leasing contract is signed, the relationship is between the leasing company and the consumer. The dealer is involved only when there is an issue with the vehicle. After signing the leasing contract, the obligation is upon the consumer to make regular monthly payments towards the lease amount, insurance, vehicle taxes and licensing fees, as well as take good care of the vehicle. Leasing terms stipulate that the consumer agrees to keep the car for a specified number of months usually between 24 and 48 months. At the end of the lease term, the consumer is expected to return the car to the leasing company and pay for any damage or extra mileage over and above the specified limits.

Car Leases provides detailed information on Car Lease Prices, Car Lease vs Buy, Car Leases, How to Get Out of a Car Lease and more. Car Leases is affiliated with Used Car Quotes.

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