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How to refinance your car lease

If you are currently holding a lease contract on a vehicle but think you are paying too much, one option is to re-lease the vehicle on better terms. In the same way that you can refinance your home to get better terms on your mortgage, so you can do the same with your car.

Get in touch with your original lender to find the current amount it will cost for a lease buyout. You will need this figure in order to calculate payments for a different lease because when a vehicle is re-leased, the new lender purchases the car from the previous one.

Get in touch with other car lease lenders for quotes based on the amount for buyout. Use the internet to research the sort of lease offers available from various lenders.

Look around for leases with less inflated money factors. Excessive money factors are a big reason why a lot leasers pay far too much for their lease agreement. Lesser money factors will allow you to achieve the same or better terms in a re-lease for lower monthly charges.

Consider the length of the re-lease term when appraising the deal. If it is possible to pay the same monthly amount but terminate your lease 12 months earlier, then that is a great deal.

Compare the payoff figure between the original lease and a potential re-lease offer. If you can lower the payoff amount by re-leasing the vehicle, you will save money if you decide to purchase the vehicle at the end of the lease. If you aren't interested in buying the car at the end of the lease, then this figure will be pretty much irrelevant.

Avoid paying too much for a lease again in the future by doing some homework. Make sure you are aware of what the accurate money factor is and do your own calculations to ensure you are not being cheated (whether intentionally or not). Don't ever take the word of the dealer that you are getting a good deal. Do some research so you know it for sure.

Sometimes it isn't always possible to find a better lease deal than the one you already have. If you find that most of the lease agreements you find are comparable to your present lease, you are better off keeping your current lease as you would have to pay a service charge to re-lease anyway.

This article has been added on the 12th of May 2009

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