A rental car allows you to drive a new vehicle without paying large sums of money or take a loan.
To rent a car, just make a small down payment – less than the typical 20% of the value of the car will pay for the buy-followed by monthly payments for the term of the lease. When the term ends you return the car.
Car leasing has some drawbacks, however. Among them:
- You do not have a car when the lease expires. You are basically renting, not buying, car. So you have no equity in the car to use for the purchase of another vehicle.
- Over time, say 10 years, some of the car rental costs can exceed the purchase price of new or used car.
- lease terms can carry steep penalties. You may have to pay a penalty if:
-You The number of miles is overcome in your lease.
– You could not keep the interior and exterior of the car in good condition.
– You push the hard drive and cause significant wear on the performance and appearance of the car.
– You want to return the car before the contract expires.
Does the lease makes sense for you?
Leasing is more profitable to buy when you:
- Do not have the money to buy a car.
- You want to drive a vehicle that is out of reach of your purchase price.
- There will probably exceed the mileage cap in the contract-usually between 10,000 and 15,000 miles per year.
- Can you take care of the car’s exterior and interior, with special attention to avoid scratches, spills and other cosmetic damage.
- Expect to hire another car when the current contract ends your vehicle.
Exceeding the mileage limit for rent you can charge 10 to 15 cents per mile. Dealers will inspect your car before the lease expires, and you will also be charged for excessive wear.
How to Rent
To get the best deal on the car you want, you still have to follow these steps:
- Step 1. Select the type of car you want? Better yet, what car do you need? A conversion? A sedan? SUV?
- Step 2. Select model List the type of car in its price range. You can reduce the cost of non-rental introducing the model with the favorable gas mileage, high dependency, superior safety features and lower insurance premiums (ask your auto insurance agent for a list of vehicles that fit the bill).
- Step 3. Take the test unit Once you narrow down your list to a few models, each car for a test drive. Pay special attention to comfort, visibility, braking, steering, internal sound and shock absorption. At this stage, let alone the intention of renting (more on this in Step 6).
- Step 4. Ask for proof-security unit long, ask the seller if the vehicle is equipped with antilock brakes (ABS), electronic stability control (ESC) and side airbags protect the head. All safety devices are valuable.
- Step 5. Compare the lease transaction When you come home from the dealership, calculate rental deals offered and know how much you can afford to pay monthly.
- Talk first price Step 6. Once you are ready to go back to the dealer to reach an agreement, not tell the dealer will rent until after negotiating the purchase price. Most renters do not realize that their monthly payments are based on the final price agreed.
- Step 7. Negotiations to negotiating the final price of the vehicle from the very low cost to the dealer. You can find out what the cost of a new car dealership for $ 14 per vehicle, Consumer Reports. Your monthly payment is based on the price that you and the seller installed. The price will fall somewhere between the wholesale price the distributor and the retail price suggested by the manufacturer.
- Step 8. Care gab- the seller may try to push in the direction of closing, focusing on a relatively low amount you will pay each month. This, however, the total amount you will pay will increase.
- Step 9. The higher the down payment the payment of its lease-, the lower your monthly tab. Such as bills, you will face penalties if you fail to make timely payments. Returning the rental car early, before the end of the loan term usually result in punishment, unless trade in the car to another car rented or purchased.
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