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How to go about leasing a car

Be prepared to lease the vehicle for at least 2 years. Most companies that offer car leases require that customers to lease the vehicle for at least this long, and that can be quite a big commitment. Work out how much money you will have to pay for the car during the term of the lease. Include all fees and get a fair depreciation estimate on the vehicle. If the person you intend to lease the car from can't give you an accurate estimate, look elsewhere.

Compare the terms and cost of the lease as opposed to getting a car loan for a similar vehicle. Carefully examine the terms of the lease agreement for charges involving accidents and insurance. Look at whether you want to lease a vehicle that is new or used. New cars will be a lot less likely to have performance issues, but ultimately you will end up paying a fair amount more for the depreciation of the vehicle over the lease period.

Negotiate a price with the lease agent as though you were buying the car. A lot of people who decide to go with a lease don't actually realise that they can negotiate on the price to bring it down or maybe get special features on the car by using bargaining tactics. Get comparisons from other vehicle leasing companies and dealership competitors to use as leverage when you are negotiating.

You could consider totally bypassing the dealer and go straight to the leasing company. Typically, dealers don't operate a lease; they merely facilitate the initial deal. This may be less convenient but the savings could be significant; the dealers take a fee from the leasing transaction but add very little to the overall process. Credit unions, Banks and Car Companies often have their own leasing companies. Getting in touch with one of them directly could possibly get you a cheaper lease with much better terms.

Scrutinize the terms of the lease before you sign anything. Many lease deals have hidden fees and use other, less than scrupulous tactics that can end up hurting customers. If the monthly payment on a lease looks a bit too good to be true, look for the catch in the agreement.

This article has been added on the 27th of April 2009

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