Auto Finance – Lease a Car

If you do not have money to buy a car, or want to drive a car that is beyond your financial abilities, or you do not want to get a loan, there is always a possibility of getting a lease.  But, what is a lease?

When you lease a car, you are in fact renting it, and paying monthly rent for it.  At the end of the lease, you return the car to the leaser, and you are also offered a chance to lease another car.  A lease agreement is not an economical choice as you pay a lot of money to just drive a car that will never be yours unless you can buy it.  A car lease lets you drive a new vehicle without paying a large sum of cash or taking out a loan.

To lease a car, you have to make a down payment, around 20% of car value on the market. Monthly payments are smaller if you make a bigger down payment.  A Lease has its negative sides. You don’t own the car in fact, you are just renting it. Also, you can get penalties if you for example exceed the number of miles stated in your contract, if you fail to keep the car in an acceptable condition.  Returning the car after the lease expires can also lead to extra payments (Penalties).

To lease a car is a much simpler procedure than to get a loan. But, you must beware of some facts. First of all, as in getting a loan, get more lease deals and find the most suitable and affordable for you.  Always negotiate the price, and then settle on a lower price, tell the seller that you’re going to lease the car.

Arrange your payments in such a manner that you pay as much as you can afford, In order to decrease the overall payments on your lease.  Do not attempt to return the car before the lease expires. That will lead you to penalties. You can return the car only in case you are going to lease another car or vehicle.  Lease or not to lease? Decide for yourself, but in the end, when getting a loan, you’ll own the car in the end.  The loan, especially the one offered by online credit loans, for example the www.UnifyLenders.com, are much more acceptable, give you more security, and more benefits in the end.

Also, one of the ways to get a new car is using your home’s equity to finance the car. That topic will be discussed in the next session.