When you don’t have enough to purchase a used or new car, the best option is to lease auto. It involves paying a portion of the actual cost of the car. You pay for the number of years you are going to use the car according to your lease agreement. Before you decide to lease a car, there are several factors you have to consider.
There are several lease questions which you need to ask the dealer before signing the agreement. This will demonstrate to the dealer that, you know what you are looking for in a car. In case you don’t know much about car leasing, you will not be sure of the questions you are asking the dealer. If you happen to know exactly what questions to ask, you might accurately evaluate a lease agreement. Some of the lease questions to know include:
- Make sure that the residual value of the car is well known
If the car has a high residual value, it will automatically save you up to 80%, which stands for the end value of the car after the lease is completed. Why is the residual value important when you are to lease a car? When you are car leasing, you will pay for the amount of the car’s usage during the lease.
- Get to know if there are any lease specials
This is normally offered by car makers, especially on slow-selling cars. Such offers can save you a considerable amount when you are out leasing a car. Make sure you check the fine prints of the ad so that you do not miss out on any hidden expenses.
- Make sure you know the interest rate
Knowing how much interest you are to be charged on the lease will help you to know if it is worth going for. Most dealers give out interest rates, basing on the lease credit worth. But the game is different when it comes to manufacturers as they put low-interest rates in order to attract more customers.
- Check out the mileage of the lease
Some car leasing companies calculate the amount you are to be charged depending on the mileage. The maximum mileage for many companies is 12,000 but some end up putting it at 10,000.
Learn to check the lease car agreement very well before signing.