Car Leasing: Questions to Ask Before Deciding to Lease

car leasingFinding a way to get a new car can be tough. Not everyone can afford the down payment for a brand new car but not everyone wants to turn to a completely used car, either. This is where car leasing can be a great choice. Leasing a car takes a bit out of both worlds,since you are getting an almost new car but you are also paying less money per month and much lower interest rates. If leasing is something that you are considering, it is a good thing to know that you need to ask a lot of questions before deciding on the right option. We have some of the most important questions below.

What Payments are Due at the Start?

Many people think that leasing a car involves signing the contract and driving off with the car, but this is not so. You will need to pay some fees before you are able to drive the car of the lot. These fees include a first month payment, taxes, processing fees, and many times a down payment on your last month of use. This is still less than you would pay if you were buying a car, however, so keep this in mind.

What Kind of Lease is It?

The only kind of lease you want to sign is a closed-end lease. In this kind of lease, if the car is worth less than the company estimated when you signed up, you will not be charged for the cost but the company will shoulder the loss. You definitely do no want to get stuck with paying for a car that has de-valued faster than the company expected. Keep this in mind when deciding on a car leasing agreement.

How Many Miles Do I Get a Year?

If you are someone who drives a lot for work, you want to ensure that the car you have leased allows for a good amount of miles. Going over your miles can be costly, with some leasing companies charging up to 25 cents per extra mile. This is not something you want to worry about, so the best thing to do is to ask from the start what the miles will be.

What are the Fees for Ending the Lease Early?

You never know what will happen in the future. You may get a job offer somewhere else in the world or you may decide to move. If this is something that happens, then you want to be able to terminate your lease with only reasonable penalties. This is something that you want to ask.

All of these questions can help you find the right car to lease. You want to take the time to ask lots of questions so that you can be sure you are making a good choice. By knowing what your fees will be, how many miles you can use per year, and what it would take to terminate the lease early, you will have the knowledge you need to make a great decision. A car leasing service will be more than happy to answer these.