Leasing an automobile allows the freedom to use a vehicle and make payments on it, without having to purchase the car at full price. When the term of the lease is up, the lessee can choose to purchase the vehicle at a reduced rate, or trade the vehicle in for another lease agreement or car purchase. Leasing a vehicle, however, requires an individual to sign a contract, during which the person is required to continue making payments on the car.
Lease Termination
Getting out of a car lease can be difficult---but it is by no means impossible. Here are a few things you can expect when you attempt to get out of one. A common misconception about terminating a lease is that, when you decide to get rid of a vehicle, you simply need to return it and pay the prescribed termination fee. While sometimes lease termination is just that easy, this usually is not the case. The fees required to terminate a lease add up, and may in fact be in excess of the amount you still owe, which requires you to continue leasing the vehicle if you want to continue saving money. Oftentimes, a company will allow you to terminate for a smaller penalty, but will require that you pay out the rest of the term remaining on your lease. Either option is more expensive than simply finishing out the term.
Negotiating a Purchase
You may decide, after leasing a car for a time, that you would like to purchase the vehicle. Fortunately, this is a perfectly legitimate way to "get out of" a car lease. Unfortunately, the cost can be higher than simply finishing out your lease agreement. Because your use of the car causes it to diminish in value, the actual resale price of the car (known as the residual value) might end up being significantly less than the amount you'll be required to pay to purchase it. Learning the "money factor" and negotiating the capitalized cost of your vehicle will help you to get a good deal as you negotiate; but beware that doing so is difficult.
Lease Transfer
Perhaps the easiest and most cost effective way of ending your lease is to transfer leases with an individual who is leasing a vehicle that strikes your fancy. In fact, there are so many resources and means of swapping a lease that you might be surprised how quickly you can get out of a lease that does not suit you. Lease transfer companies offer websites where thousands of people list their vehicles and, for a small listing fee, you can place your lease and your desired trade up for negotiation.
0 comments:
Post a Comment