Car Leasing Is Different. Really.
Many inexperienced automotive consumers think that car leasing is simply car renting -- as in apartment leasing. Not true.
Leasing is based on the fact that a vehicle will depreciate in value by a certain estimated amount during the time that you use and drive it. You pay for the difference between its original value and the depreciated value at the end of the lease term. This saves you money because you don't pay for the entire value of car. You return the car to the lease company at the end of the lease.
However, too many folks lease without understanding that leases are designed to be completed. And that the vehicle must be returned in good condition. And that they must pay extra if it isn't. And that they must also pay extra if they drive more miles than originally agreed to -- because more miles reduce the vehicle's value. And that they can't modify or remove equipment from the vehicle -- because the vehicle belongs to the lease company, not you. Without these understandings, leasing can easily become a bad experience. I've actually had people tell me that leasing is a scam, in an attempt to cover up their own lack of knowledge.
Lack of knowledge and preparation about leasing, or any business transaction, will allow those with more knowledge (car dealers and lease companies) to take advantage of you. They are guilty of doing it; you are guilty of letting them do it.
If you think you might be interested in leasing, or don't know if you should, please read the articles at LeaseGuide.com first.
Leasing is based on the fact that a vehicle will depreciate in value by a certain estimated amount during the time that you use and drive it. You pay for the difference between its original value and the depreciated value at the end of the lease term. This saves you money because you don't pay for the entire value of car. You return the car to the lease company at the end of the lease.
However, too many folks lease without understanding that leases are designed to be completed. And that the vehicle must be returned in good condition. And that they must pay extra if it isn't. And that they must also pay extra if they drive more miles than originally agreed to -- because more miles reduce the vehicle's value. And that they can't modify or remove equipment from the vehicle -- because the vehicle belongs to the lease company, not you. Without these understandings, leasing can easily become a bad experience. I've actually had people tell me that leasing is a scam, in an attempt to cover up their own lack of knowledge.
Lack of knowledge and preparation about leasing, or any business transaction, will allow those with more knowledge (car dealers and lease companies) to take advantage of you. They are guilty of doing it; you are guilty of letting them do it.
If you think you might be interested in leasing, or don't know if you should, please read the articles at LeaseGuide.com first.
posted by Al Hearn at 9:23 PM
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