I'd like to see a virtual show of hands here - who of you out there absolutely adore new cars? I see a lot of hands, and it's understandable because a good number of us love new cars. However, a good number of us hate overpaying. That is why I implore of you to be very mindful when it comes to car leases, and research all your options and find out whether buying or leasing is the solution. And I'm sure there are also a lot of us who would fess up that they have learned the hard way about the hidden costs that come with a lease. And some of these charges may shock you. Here are a few of these surprise charges.
The monthly lease payment. Did you know that there are unscrupulous car dealers out there who will blindly rip you off if you let them. That's right. And your monthly payment might have been arbitrarily made up by one of these dealers on the spot just by looking at you and deciding how much money they should charge you. Make sure and question everything on the lease form and ask in depth questions as to why you should be paying what you are. The fine print can be your friend, use it against the car dealer to negotiate a better deal somewhere else.
Your car's mileage will mean a lot. This is a biggie. Many people see the low payments and are like, "Hey, I got a lease and I'm paying lower than I would if I were buying!" These people are all fat and happy with their new vehicles, but when the time comes for them to return the vehicle, somebody better call 911 because the charges could give any customer a heart attack. The charges for overage miles can indeed shock the uninitiated. It's not a pretty site and it can seriously damage your bank account. If you lease your car, make sure your mileage doesn't exceed it's limit.
Lack of equity, anyone? Buying a car allows you (or maybe the bank, as they own the bank note) to own the vehicle. You don't build equity with a car lease. You are, for all intents and purposes, renting the vehicle. Make a complete analysis of all equity debits and credits before you go for the lease.
There are a ton of other hidden costs involved in car leases that make points #1-3 look small by comparison. It's up to you to look them up.
The monthly lease payment. Did you know that there are unscrupulous car dealers out there who will blindly rip you off if you let them. That's right. And your monthly payment might have been arbitrarily made up by one of these dealers on the spot just by looking at you and deciding how much money they should charge you. Make sure and question everything on the lease form and ask in depth questions as to why you should be paying what you are. The fine print can be your friend, use it against the car dealer to negotiate a better deal somewhere else.
Your car's mileage will mean a lot. This is a biggie. Many people see the low payments and are like, "Hey, I got a lease and I'm paying lower than I would if I were buying!" These people are all fat and happy with their new vehicles, but when the time comes for them to return the vehicle, somebody better call 911 because the charges could give any customer a heart attack. The charges for overage miles can indeed shock the uninitiated. It's not a pretty site and it can seriously damage your bank account. If you lease your car, make sure your mileage doesn't exceed it's limit.
Lack of equity, anyone? Buying a car allows you (or maybe the bank, as they own the bank note) to own the vehicle. You don't build equity with a car lease. You are, for all intents and purposes, renting the vehicle. Make a complete analysis of all equity debits and credits before you go for the lease.
There are a ton of other hidden costs involved in car leases that make points #1-3 look small by comparison. It's up to you to look them up.