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Can You Lease A Used Car

You can definitely lease a used car especially if your budget can’t take the pressure of another financing option. The process is similar to that of leasing a new car: you will still have to contact a dealer, negotiate the price, sign an agreement and oblige to cover some monthly payments. The company that is leasing you the car will first check your credit and only then allow you to lease it. Once the lease expires you will return the car to the leaser and sometimes, if you express this wish, you might be aloud to purchase the car.

The only difference between a new car lease and a used car lease is the type of car you are leasing. A used car is less expensive, therefore, in theory, the cost of the lease should be significantly reduced (a lease is based on the vehicle’s depreciation during the lease). Usually, a used car lease is possible when a driver that has leased a new car terminates the lease agreement before it legally expires. That’s when the leasing company usually decides to transfer the car to another interested client.

Lease A Used Car

The main reason why people choose to lease a used car is the more affordable cost. On the other hand, before making up your mind you should also take interest in the new car leases. That’s because, nowadays, leasing companies offer interesting lease deals on new cars due to the many discounts, rebates and promotional incentives that have been used to encourage drivers to lease cars. That’s how a new car lease can potentially become as cost effective as a used car lease.

When leasing a used car you need to take into account several factors. You need to pay attention to the true market value and do your homework in order to be able to negotiate a price that can be considered fair. The mileage is another issue. A car with high mileage is not such a great deal. If you want to lease a used car that still holds some of its value you should choose one that has an average of around 15,000 miles a year. A third expense that you should consider is that required by repairs. Used cars come rarely with a warranty, so you will have to deal with all the car’s problems once you sign the agreement, if the manufacturer’s warranty has already expired. Before signing the lease also make sure you read it twice and look for any possible additional fees or not mentioned charges that might attack your budget.

If you are wondering what type of used cars you will be leasing you might be happy to know that you will benefit form the same variety of make and models as the one available for new car leases. That’s because many of this used cars were already leased as new cars by other persons. There is also the category of luxury cars that you can lease as used. These are excellent candidates and you should definitely try to find a Jaguar, a Bentley or even a BMW.

If you want to save money by leasing a used car you should look for a car less than 2 years old, “VAT Qualifying” and with less than 30,000 miles on board. Concerning the manufacturer, I’d opt for a British car because those usually depreciate heavily in their first 12 months of usage. But in the end, you should just stay away from cars that are too old and make sure to check the residual value because that’s a number that will affect your budget.

Car Lease About

The first thing you need to understand about car lease is that it’s not a loan. Getting a loan means that you can actually purchase something. Leasing is actually a rental agreement. If you make a loan for a car and you finish all the payments on the loan, you remain with the car. On the other hand, when you finish all payments and reach the end of the contract, you end up owning nothing.

Car Lease About

So if you end up with nothing at the end of the lease, than who should lease? Leasing was created with the purpose of offering vehicles for business use while providing an economical way to do so. Nowadays it has become a way for the average individual to drive around much more than they can afford. 75% of all Mercedes, BMW’s or Lexus’s you see around are leased.

If you have a small business of your own, or plan on using the vehicle for business purposes only, than yes, leasing may be the best thing for you. However, if you are one of the many that cannot deduct lease fees from taxes than leasing would be a bad idea. If you put all the payments head to head you may come to realize that buying a car might cost you less than leasing for one and ending up without it in the end.

Dealers will tell you every time that leasing is a good idea and the fact that you will be driving a new car non stop. The reality is completely different. First of all you have all the responsibilities of owning a car and no advantage. You don’t have a car title to show for since until the end of the lease, the leasing company holds it, yet you are the one doing all the maintenance, repairs and insurance cover. It limits the use of your car dramatically because if you dare cross over the 15000 mile limit than you might end up paying 15 cents for each extra mile (if that’s not ripping off, than what is?). The only financial advantage of a car lease is that you don’t have to pay the sale sates tax more than once per month with the monthly lees fees.

Before entering a leasing contract you should read all the clauses carefully because you may be surprised. Your contract dictates the condition the car must be in when you return it to the dealership. Any kind of abuse like dents and scratches must be professionally repaired. Whatever broken knobs and other accessories must be changed, while the wear and tear should be kept to a minimum. Keep in mind that you will be charged for every imperfection that the car has. If you were to own the car no one could force you to repair the car, unless you feel is necessary.

Another great danger posed by leasing is the early contract termination. Representatives and dealers will tell you that ending a car lease is not a problem and that you’re free to return the car whenever you feel like it. Don’t believe a word they say, since their promises fly away like the wind since you don’t have anything of the sort written on your contract. In reality breaking a lease can be extremely expensive and if not done correctly, could leave you with no car, no money, and deeply scar your credit history. The best way is to find someone that is willing to assume your lease so that you can transfer the lease and give away the responsibility.

Car Lease Company

Allstate Leasing is a car lease company founded din 1969 that over the time has become one of the largest dealerships and service centers in the Mid-Atlantic region. Their products are available for both corporate and consumer customers. Some examples of services would be the corporate fleet and individual consumer leases for 12 to 60 months, the short-term corporate mini-leases offered over a period of 3 to 9 months along with financing programs, a track-down service and the option of fleet vehicle maintenance and management plans.

The advantages that make them competitive on the market as a car lease company are represented, first of all, by the corporate fleet discounts. Considering that 80% of the businesses in the US lease their vehicles and their equipment, the discounts offered by Allstate Leasing for each vehicle your company leases, no matter if it’s one or 1000 cars, can prove to be a budget saver. In addition, the cars your company may decide to lease come with the option of a full-service maintenance management plans that are designed to help busy executives manage their vehicles. The prices for these services are kept in an affordable range and are designed to be highly efficient. The company is also willing to offer as many quotes as you wish for the cars you are interested in and discuss the matter of vehicle specs and warranties until you become comfortable with the options offered. For companies, Allstate Leasing also offers a full line of equipment leasing option.

Car Lease Company

Consumers will benefit from great lease deals as well. This car lease company offers for leasing new or certified used cars. They put an entire showroom and lot at your disposal. Other 30 local Maryland dealerships that are representatives of Allstate Leasing can also provide you with the car of your dreams. There is also available door-to-door delivery of your leased vehicle to your home or work place while the staff members will be glad to answer all your questions and help you finish quickly with the entire lease process, because this car lease company handles every aspect: credit, trade, tag and title service. All these services will offer you security, convenience and savings. You can just use the online lease applications and have the car you desire delivered in short time.

One downfall of this company is the fact that even if they offer door-to-door delivery in all 50 states, the tracking service, the option of custom building your car and free online quotes, they don’t offer GAP insurance, the option of trading your car and many lease specials. What is nice about this car lease company is that the variety of vehicles that can be leased is wide including town cars, but also exotic sports cars and SUVs. They also offer the customer the opportunity to buy the car at the end of the lease. Also, at the end of the lease they will be interested in the car’s condition because if you return a damaged car you will have to pay an expensive hefty fine that might be more costly than the bill you would receive from a repair shop. Also, don’t forget about the mileage restriction stated in the contract that’s usually between 12,000 and 15,000 miles a year, because at the end of the lease you will have to pay for every extra mile you have driven.

All in all, Allstate Leasing is an excellent car lease company that offers many advantages for both corporative and consumer clients. Their fleet is diverse, they offer great leasing deals and discounts and good enough customer service.

Car Lease Extension

If you are happy with the car you have leased some time ago, you may be interested in a car lease extension. But I must tell you that the cost can prove to be more expensive than if you would choose to lease another car (at least the long term cost). The extension of a lease usually involves paying some fees and having to pay some other penalties as well is another problem you will have to face. Another issue is represented by the term of the extension, because you may be interested in a short amount a time and not in an actual renewal of your current leasing agreement.

If you still are interested in a car lease extension, then you should first of all read the contract of your current leasing agreement. That’s because almost each contract has special stipulations regarding the extension of the car lease, stipulations that may also state the fees that are involved by this option. If you are unable to find a clause that refers to this issue you will just have to negotiate the terms with the leasing company and ask one of their agents to provide you with all the necessary details.

The next step involves taking a look at your maintenance and payment records. If those records are close to perfection and the car is in still in perfect shape then, you are very likely to get the car lease extension you desire. That’s because any dealer feels fortunate to work with a client that keeps his end of the bargain.

Car Lease Extension

After you have checked all these documents it’s time to set a date and a time when you will visit the leasing company and renegotiate the contract. You should just set a date and an hour for the meeting and not negotiate the extension over the phone, because you shouldn’t rely on verbal promises. You should make sure that a new contract including the terms you negotiated with the leasing agent is written and only then should you sign all the documents. Before signing you should also check if the contract states it’s a car lease extension or a renewal of the expired contract, depending on which option you have chosen.

You may receive a more advantageous car lease agreement if you try to negotiate a new lease rather than modifying the old one. That’s an option especially if you want a car lease extension for a longer time frame. It would be more advantageous because the value of the car you have leased has depreciated in time and an extension might be more costly than if you would go for a new lease. Just keep an open mind and try to give a chance to the current lease options of your current leasing dealer and even check out the offers available from other competitors on the market. That’s if you decide you want a completely new lease.

Once you’ve chosen one of these options, you have read and paid attention at the contract’s clauses you can sign it and enjoy driving your new leased car or the same car if you have chose to extend the old lease. But in this case, the minimum term is of three months, because otherwise the leasing company will not be interested. The key to any good lease is comparing and evaluating all your options objectively and in the end you need a car lease just until you will be able to afford buying a car of your own. That’s the day when all these problems will fade away.

Car Lease Zero Down


If you want a new car and you choose a car lease, then it is possible you could obtain a zero down car lease, especially if you are interested in one. Auto loans with zero down are not that possible. That’s because car leases are designed with the intention of covering the initial depreciation while loan payments focus on helping you to cover the loan payments and also the interest involved. The cost of a five year car loan is definitely higher than the depreciation you will have to cover during a two-year lease term.


If I got you interested in a car lease, zero down, you should first of all choose a car for which the depreciation value will be as little as possible. With a low depreciation, you will be able to benefit from monthly lease payments that will not require a down payment. In other words, you should avoid leasing a car that depreciates seriously over the time.


Secondly, you should try to negotiate with the leasing dealer the capitalized cost of the car lease (the car’s price). The negotiation will be harder to handle, because the matter is more complicated than in the case of a standard purchase price of a car. If this cost is low enough, lower than the MSRP (Manufacturer Suggested Retail Price) of the car, the dealer will be more inclined to offer you the possibility of a car lease, zero down.

Car Lease Zero Down

Thirdly, consider negotiating a lower money factor that can be compared with the interest you are obliged to pay to a company if you were purchasing the car from a dealer. As a result, its value should be similar to the interest rate of an auto loan. Moreover, if the buyer’s credit history is not that clean, the money factor offered by the dealer might be higher.


Fourthly, if you would still need to pay a down payment, because the monthly lease payments don’t cover the depreciation, you should offer to pay a higher monthly payment. That’s another way you can benefit from a zero down car lease or you can take advantage of the monthly special lease deal offered by many car manufacturers.


April 2011 is a good month for leasing a car and even getting a zero down car lease. One possibility would be the Honda Civic, available for a monthly payment of $260 and no down payment over 36 months (meaning a LVR of 1.02%). Another car lease that can be considered an excellent deal is the lease of the Buick Regal CXL for a monthly payment of $294 and no down payment, the lease term being of 39 months. If you are willing to check out a car lease that involves a down payment, you should know that for a down payment of $2499 you can lease in April a Toyota Camry Hybrid. The monthly payment involved will be around $249 for 36 months at a LVR of 1.03%.


Always try to find a lease that doesn’t involve a down payment, because this down payment is actually a ploy used to make you consider that your monthly rates are lower. That’s why you should be more interested in the average car payment figure for the lease deals that are announced each month. But there are still many car manufacturers on the market that are offering zero down car leases, each month, for their newest models. They are interested in attracting more customers by offering these incentives and you are a client that pays attention to budgets and special offers. Don’t be afraid to negotiate either.


Prepaid Car Lease


Prepaid car leases are also known as single-payment car leases and are usually an option for people who have available large amounts of money in cash. It’s a possibility to lease a car, not have to pay monthly payments and even save some money. Nonetheless it would be wise to make sure that paying all the money up front is advantageous and also if there are any drawbacks that might convince you to walk away.


It would seem that in the case of a prepaid car lease you would actually eliminate some extra expenses caused by all the finance charges or the interest that is usually associated with the idea of a car lease, paid for monthly. But, the entire process isn’t that simple. When you prepay a car lease you aren’t paying for the entire value of the car, but for its depreciation and you are also required to pay interest for the residual portion, but no for the depreciation amount. As a result, you will save some money, because you avoid paying for some finance charges, but you will still pay interest on the residual value.

Prepaid Car Lease

In other words, when you prepay a lease you don’t actually pay it all off at once. You pay up front for everything except the lease-end return value (residual value). As a result, finance charges will still have to be paid for that amount. They can be included in your initial cash payment. The reminder of the loan will be paid at the end of the lease, when you return the vehicle to the dealer.


So, by opting for a prepaid car lease you are saving money you would have otherwise spent on interest and sales tax. The total savings might be less than you expect, especially if you compare their value with the expenses involved by a short term car lease. You will avoid paying some of the interest, but not the entire amount.  That’s why it might be wise to ask the leasing dealer tell you the amount you will have to pay if you choose a prepaid car lease or a traditional car lease. If the two sums are the same you can assume that the dealer uses a formula that actually sums all the monthly payments, including interest.


Sales-tax is another expense that can be avoided when you choose a prepaid car lease. In most states that expense is added to the monthly payment. You should remember that those payments also include depreciation and interest. So, even if it might seem unfair, you are paying interest on the sales tax. By eliminating the monthly interest, you will save that amount. You will still pay the sales tax on the depreciation amount, but only as part of that single payment.


There is one major disadvantage regarding the prepaid lease. If the car you leased is stolen or completely totaled, the car insurance you purchased will cover only the current market value of the car leased. As a result, you might end up loosing an important part of the money you have already invested in the vehicle by paying that upfront payment. In the case of the traditional car lease, gap coverage will protect you from such a situation. You would only have to cover your insurance deductible. You can include gap insurance in your prepaid car lease as well, but it would do you no good, because it will not cover your cash losses.


You should choose a prepaid car lease, only after you have discussed with the dealer and understood the benefits and the risks.


Best Car Lease April 2010

April 2010 was a good month for leasing a car. For the first time only one car manufacturer dominated the top 5 with its models: Rav4, Camry and Corolla that occupied the first three places. The LVR that went below 1% was also good news.


It is the first time when the Monthly Car Lease website and the Product Review Ratings were able to announce such a low LVR. The .96 LVR turned the Toyota RAV4 in the best car lease of April 2010. The RAV4 was also considered a great deal, because only a few other SUVs are usually able to obtain such good ranking in the top of best car leases. The RAV4 lease was available in April 2010 for just $199 and a down payment of only $1299 that included the first month payment as well. And for a value of $24,019 you were getting an outstanding 4-wheel drive SUV with a fuel economy system, safety measures included, a five-passenger capacity and the cargo space of a mid-size SUV. With great handling on slippery roads and not only and with its sporty look, the RAV4 was with no doubt the best April 2010 car lease.


Another option was the 2010 Toyota Camry, also available for a monthly lease rate of $199 and a down payment of 1,199. The Corolla was the next best April 2010 car lease that you could have been interested in if you enjoy driving a sedan. The value of the rate was $169 a month, while the down payment reached $1099. Toyota definitely dominated the top and even if in March and February 2010 their deals were extraordinary as well, in April the car manufacturer really went the extra mile for its customers.


Honda was another competitor for the best April 2010 car lease title. The company continued with their special offer that involved 0 down payment for some of its models including the Accord and the Civic. Mazda, on the other hand, decided to go with a zero down payment and low monthly payments for the 3-series, 5-series and for the 5-door models. You could get a Toyota RAV4 with no down payment as well, as long as you asked your dealer to make you an offer. That kind of deal would have led to a monthly payment of $235-$240, according to a car lease calculator. But if you would have used your power of persuasion you could have easily convinced the dealer to offer you the RAV4 lease for only $199 a month and no down payment.


BMW 335i Convertible


The BMW cars could have also been considered as part of the best April 2010 car leases because of the BMW 335i Convertible that could have been leased for a monthly payment of $499 and a down payment of $5,324. This offer helped this BMW model to win over the 7th place of the April 2010 Car Lease Specials. On the other hand, the BMW 550i was rather unusually expensive to lease. The $809 monthly payment and the down payment of $6,184 were definitely not for tight budgets.


We all hope that April 2011 will be as giving, but even if the lease deals available so far aren’t the best car lease deals of 2011, there are some options that are worth taking into consideration. An example would be the Honda Civic Hybrid available for a monthly payment of $260 and no down payment for 35 months or the Toyota Camry Hybrid for $249 a month and a down payment of $2499 (36 months and a 1.03% LVR). Not so bad, is it?


Car Lease $199


A car lease for $199 a month, it’s truly an offer you can’t refuse, especially considering that you are getting a new car at a monthly payment with almost a 50% discount. And that price isn’t valid for any car, but actually for a midsize sedan such as the Honda Accord, the Nissan Altima or the Chevrolet Malibu. As a result, $199 starts to look like a magic number even if along with this monthly payment you will have to cover the taxes, the license fee and sometimes an upfront that can be around $2,200.


If you are interested in one of these incredible offers, you should stick to the plan you had in mind when you first entered the dealership. It is generally known that even if a car lease of $199 for an extravagant car, powerful enough because of its four-cylinder engine, is appealing, in more than 50% of the situations, people will go for a more expensive monthly rate, because they are tempted by a V6 engine and full-options.


Car Lease $199


Another reason why you could loose a $199 car lease is represented by a less perfect credit history. Every manufacturer’s financial division has its own standards, and the differences in money between a “Tier One +” client, a “Tier One” client and a “Tier Two” client can be significant or the dealer might even refuse to grant you the lease if your credit score falls under the standard. The assessment of a client’s credit is done by applying some formulas. You can use some online instruments in order to find out if your credit qualifies for such a lease.


You should also know that a $199 lease agreement usually specifies a reduced mileage per year. For example, the Toyota Camry LE $199 car lease limits your mileage to 12,000 miles per year for a period of 3 years. As a result, an average of 40 miles a day will mean that you will easily exceed the limit, and all that extra mileage will result in an extra expense. You will have to pay 15 cents for each mile that it’s not included in the original 36,000 miles stated in the contract. You can choose to negotiate a higher mileage, but it’s very likely that the mileage extension will come for an extra cost.


If you are determined and you are sure your old car doesn’t satisfy you anymore, you should be ready to act fast. You should be always looking for such spectacular offers, because a car lease for $199 a month it’s usually offered by a dealer for a limited time period. So, be ready to act and do your research in advance. That means even finding the right car, because getting a car you hate even at an excellent price is not very appealing. There are enough options even when it comes to special offers, so use the Internet or printed sources in order to make sure you are getting what you want with the help of a $199 car lease offer.


If you haven’t yet benefited from such an outrageous offer, there is still time. The $199 car lease is usually available from companies like General Motors, Chrysler, Toyota and many other car manufacturers that are interested in offering their customers impressive incentives. Also, the auto makers and the finance companies are always trying to reduce the costs of the lease so that, in a way or another, you will still be able to take advantage of such an offer all year around. So, don’t be disappointed! Second chances are always available!


Bmw Car Lease


Many people are interested in driving a BMW car, but if you can’t afford to buy a new BMW car, you can always lease one. As a result, the dream you always had becomes affordable. But, in order for those rates to respect your budget, you should take into consideration some factors before signing for a BMW car lease.


You should ask yourself a series of questions, regarding the time you will be driving the BMW leased, the style that will be best for satisfying your needs and the leasing option that will allow you to afford the BMW car lease. Even if you find the questions common, their answers might make the difference between a good leasing experience and a lease unsatisfactory and over priced.


It’s important to know how often you will be driving the car, because mileage is important for the lease agreement you will sign. Initially, you get a limited number of miles per year that will influence the price of the BMW car lease. If by the end of the contract you will have exceeded that value, you will be obliged to pay extra money for the additional miles. So, rather than paying extra, you should estimate the mileage before signing the contract. Another reason is the fuel consumption, because BMWs are known to consume more than an average car. So, if you will use often the car, you should choose a model that can ensure you of a good gas mileage (at least 30 miles per gallon when you drive on the highway). A diesel engine might be able to solve your problem.


The style decision is a personal choice, and it is influenced by the reason you want a BMW car lease. For example you can consider this brand for a personal reason or for business reason, or for both purposes. If it’s for your business, you should keep in mind that is a refection of that business, so you should try to match the business’s reputation with the car’s exterior design. If it’s for personal use, you should be more focused on your personal likes and dislikes.


Bmw Car Lease


Deciding upon the leasing option it’s a more complicated matter that depends on your personal needs. You should research the market and be careful to compare the deals offered by more than one leasing company. There is also the possibility of leasing online the BMW car you might want. The process is simplified and even if you want to see the car before leasing it the company makes that possible with no additional effort involved. In fact, the supplier can get the cars that remain on your short list to your door step, in order for you to choose one of them. The four step process requires little time and involves: checking out your options, getting the online quotes for the BMW car leases you are interested in, comparing the information those quotes include and making your final decision without having to step in a dealer’s office.


The studies have shown that more than half of the BMW drivers used the leasing option, because a prestige car is always of interest even for a tight budget. The situation was made possible by the competitive leasing programs available in the USA and not only. You pay just for the car’s usage and at the end of the lease you can lease another BMW, re-lease the same car, buy it for the agreement price or just end for good the contract. Using the BMW Financial Services can also help you get a BMW car lease.


Bankruptcy Car Lease



Bankruptcy is probably one of the worst things that can happen to someone financially speaking. Everything becomes more complicated after that. Each time you attempt to get a loan or a lease you have to undergo a grueling process of credit repairs and reports, scouting ahead for the companies that are willing to even give you a car lease considering your spotted credit history. Following these steps will save you a lot of time and frustration and more important it may help you skip on some credit reviews and inquiries that are paid at a very high price, namely 12 FICO credit points per inquiry.


Bankruptcy Car Lease


The first step you must make is finding out what are the lending conditions and if companies are even willing to lend to someone with a bankruptcy. No matter what leasing company you head to, never try to hide the fact that you’ve filed bankruptcy, because they can easily find out that by simply checking your credit history and it will make matters a lot worse. You have to simply accept and deal with the fact that certain leasing companies or dealers do not want to work with people who have gone bankrupt. The idea is to find those that are willing to.


Some companies may only to lease to someone that has undergone a bankruptcy, which is a good thing since that’s what we’re focusing on. Leasing can be easier to get, than a financing purchase for example. You should head on and ask the financing director to aid you in choosing a structure that is more suitable for the manufacturer. Here’s a little advice: in case you don’t have the bankruptcy written on your credit report that the lending company pulls, than you are not filed for bankruptcy in their eyes. Therefore some of the lenders that experts consider that are the best at dealing with bankruptcy situations are : Captive leaders or, more plainly, car manufacturers, banks (but not other financing companies) and some credit unions. Yet the Captive lenders are by far the leaders in bankruptcy situations with 90% car leasing acceptance for individuals that have filed bankruptcy. The idea is to be flexible and careful in the same time.




Step 2 refreshing your credit score. Having the most recent credit score when going to a dealership is imperative since it gives you a certain level of control of the negotiation. You are not left at the dealer’s mercy because you’re bankrupt. The moment you enter the dealership with your FICO scores in hand, the dealer knows that you are a well informed customer so he can’t start playing you for the fool. Yet keep in mind that dealers use a different FICO score than the customers. Their FICO system resembles the Auto Industry Options Scores. This may be a good thing for you since their scores can sometimes be higher than you own FICO score in case you made good payments on previous car loans. In some cases, dealers that want to make out of you a regular customer might even use your FICO scores in case the credit score is higher than their own.



Finally you have to decide which case is best for you, if leasing is indeed the best way to go or if purchasing a car would be the better solution. Therefore, since you’re recovering from a bankruptcy, your first priority is getting a lender that is willing to offer you a lease at all and give you some decent rates so that you can handle the monthly payments.




Used Car Lease


Felling envious towards your neighbor because he’s got a shiny new car through the popular leasing system? Do not despair, there is a good chance that you can get a car as well. It may not be new as his but if you orientate well, you might end up with something a lot better. The used car leasing is still in its infant stages yet growing more and more with each passing year. Since you have a considerable lower monthly fee and the ability to lease certain “certified” cars, used car leasing is growing more and more in the people’s minds. Think about it: while your neighbor is goofing around in his brand new 2011Toyota, you can smoke him with your 2006 BMW, and pay less than him a month as well.


The entire set of benefits such as low payments determined by comparison, alongside wit the no-hassle leasing method, are valid to the used car leasing system as well as the new ones. Since new cars suffer dramatic depreciation, especially during first year, payments for new car lease may reach really steep levels, on the other hand, an used car will suffer a much attenuated depreciation over time therefore making leasing feels a lot easier to bear, or it can get you a much better car with the same price you’d pay for a new one with considerable lower performances. Naturally, there are some higher risks involved as well in leasing a used car.

Used Car Lease

Let’s see some of the leasing risks. First of all, comes the set of problems of maintenance and services. Data gathered from customers say that in most cases, a 4 year old car will pose nearly twice as many problems in maintenance and service than a one year old car. Keep in mind the fact that any repairs that need to be done that aren’t covered by your warranty are bared by you, despite the fact that legally the car is not yours. Therefore it may be a good idea to get the bumper to bumper warranty when heading for a lease and try to extend it to cover the full lease term.


Another risk encountered in used car leases is the difficult predictability of a used car’s depreciation on a period of, let’s say five years. There are enormous car variations in the five years old used car segment. Even the exact same model can be found $2000 cheaper or pricier, making it really difficult for the customer to appreciate the true value correctly. Considering that your monthly fees depend directly on that depreciation, the dealer can very well make the depreciation very low, so in result, you pay higher monthly fees, or he can claim high depreciation therefore feeling entitled to push the car’s price upward.


So if you want to lease a used car, head for one that holds its ground extremely well on the market. Cars like BMW, Audi, Mercedes and such will always be considered valuable since they’re not just another nameless brand.


Another good idea is to play your cars right and bargain the price down using all the market evidence you can get. Show the dealer some car evaluation results from Kelley Blue Book, or Edmunds TMV so that he cannot “horse around” with the price.


Always check any kind of warranty that is given to you. Look for comprehensive ones and those that last the entire lease duration.

And most importantly, don’t sign ANYTHING until a trusted mechanic gives a the car proper evaluation containing repairs, possible problems, and maintenance.



Breaking Car Lease


Many people have been having serious trouble with car leases. Since jobs simply com and go just like that in these unstable times, keeping a car lease has been increasingly difficult for the average Joe. Yet you need to seriously about turning the vehicle in before the lease contract expires. This actually should be the last thing you do, I know how it sounds but read on and you’ll understand exactly why that is.


So you’re having trouble keeping up with the payments for your car. So the first thing that comes to mind is to take the car back and be done with it. That is the worst possible thing you can do. Stop and consider other options before you go head first into the dealership and cause yourself a considerable amount of grief later on. Think about the fact that no matter how clean your vehicle is or how little mileage it has, the turn in is considered a “voluntary repossession” with the term voluntary meaning different to the customer. The dealership will have to report this as repossession and on your credit history, the difference between voluntary and repo man is minuscule. So think about it hard before you critically damage your credit score.

Breaking Car Lease

Experts say that a repossession report on a credit report will inflict considerable damage on the credit score. Any kind of repossession, no matter whether it is forced or voluntary, will have just about the same effect on you credit score: burn it. This is taken as a considerable question mark on the person’s responsibility that will remain hanging there up to 7 years. That question mark will give you headache after headache when attempting to make any kind of lease, loan or other form of financing.


So before taking this dangerous leap, talk with the leasing company, explain the situation. They may understand and find a better solution for you. Still payments will pose a problem so you should try either to: pay the lease off, try buying it out, or find someone willing to accept the car and assume the lease.


Paying it off might sound a little ridiculous, but it actually can be beneficial. If you’re confident on your position as an employee, than for the few months you have left of the lease you might want to try to pay it off on a credit card. Of course that will mean paying quite a bit of interest but at least you will be released from the lease and the insurance payments that come with it. All you have to do is to keep the monthly credit payment and you escape face clean and credit intact.


Buying the vehicle out certainly doesn’t sound like a good idea, but if you stop and think about it, you’ll see that it is. Buying it out basically means that you will pay the remaining lease and buy the vehicle with the price calculated when the lease was made. Makes no sense right? Actually it does cause if you buy it earlier and sell it, you will cover up a considerable amount at once, therefore leaving you with very little to pay in monthly fees.


And finally, getting someone to assume the lease, is probably the best option you can have. Head online and search for possible individuals interested in leases. Companies like LeaseTrader are best suited to help you out with that. Individuals are not very hard to find because some are simply interested in a small period lease, thing they cannot get from dealerships unless they pay a lot on monthly fees.


Car Lease Refinance


The lower payments are usually the main reason why people choose to lease a car instead of buying one. When you lease a car the payments are calculated based on the depreciation the car will suffer during the time period you will be leasing it. For example if you lease a car worth $30,000 for 24 months, then the depreciation is expected to be around one third. As a result, the payments will be focused not on $30,000, but on $10,000. But, there are many situations when a car lease refinance becomes necessary because many times the lease company doesn’t reveal the interest rate.

Car Lease Refinance

If you find yourself in a situation like that, when the interest rate makes the cost exceed the budget you thought of, you should start considering your options. There is the possibility of straight refinance. That means you can try to buy out the vehicle from the dealer rather than renegotiating the lease agreement. If you decide to do that you need to contact a new lender, make sure the payoff on the lease is correct and also find out the market value of the car you leased. This option might not be valid if the car has a lot of miles on board or it is quite old.


Another option available when it comes to car lease refinance involves reviewing the contract you signed, because sometimes lease dealers state many restrictions that might prevent you from paying off the lease. If you are among the lucky ones you can refinance a home loan on a property and include the car lease in its proceeds. You can also pay off your car lease by using a home equity line of credit.


If you need some help in order to understand the process and benefit from this opportunity you can reach for help one of the online auto lease refinancing companies that are out there and over the years have specialized in finding the best solutions for the ones in need. LowerMyLease.com is such an example of a website that can help you deal with a car lease refinance. As you might already know, many times one gets trapped in a loan because of the valuable up-front payment and because of the buyout fees. Both are able to make our budget crack under pressure. In fact, LowerMyLease.com focuses on those issues and if you introduce your vehicle information, lease details and credit history the company will be able to help you find a way out that will usually involve a lower money factor that will be the key to an affordable lease refinance.


So, if you choose to refinance your car lease you should follow a series of steps. First of all you should find out what’s the value of the payoff on your lease. If you can’t find the information on the website where you manage the lease or on your account statement, you should call the finance company and ask for details on the matter. Secondly, you should review the contract for any potential penalties that might be involved by a car lease refinance. You should also take a look at the buyout amount stated in the agreement which might be called residual amount. Thirdly, you should consider contacting an auto lender that is able to provide you a quote. Finally, you should submit the application to the lender, and if approved you will be able to pay off your lease.


Remember: always check the terms of your lease, because restrictive ones might not give you the option of a car lease refinance!


Bad Idea To Lease A Car


Nowadays car leasing is a heavily used technique that most car dealers favor. It’s understandable why it’s so attractive to the average citizen. You have to deal with a little cash at the beginning and a low payment program that stretches throughout the 24 or 36 months of leasing. If you’re the kind of person that favors car changing every 2 or 3 years than the leasing systems seems your best bet. Or is it?




Think about it. First of all consider that you owe something, yet you do not own anything. One of the main problems in car leasing is that you cannot claim that the car you’re driving it’s yours despite the fact that you’re paying for it, therefore getting zero equity. Despite the fact that the lease is at all times secured by the very car that you’re using, you have no collateral in case of a required back up. Consider that the dealer holds both ends of the rope: ownership of the car and your leasing contract.


You may call this a lease as much as you want, yet if you look on your credit report you will see that it appears as a payment established with a monthly fee, which seems to be peculiarly similar to the usual loan, but worse since in a loan at least you can call the car yours.


Another downside to it is the limited future options. Leasing a car will be seen more like a loan compared to a house or apartment leasing. This means that you’re up for the entire lease balance at any given point during its term. Usually leasing companies will let you terminate the lease earlier than scheduled but this usually comes at a high price in penalties and other fees.


Bad Idea To Lease A Car


If you’ve entered a lease than you better stick with it to the end because there is practically no way out without having to deal with a truck load of fees and penalties that are meant to actually make you keep your end of the bargain until the lease expires. Considering how fast life is changing all around us, it is so smart to enter head first in a leasing contract that offers so little room for change?


Another problem with leasing is the multitude of restrictions that are given in subjective parameters which makes it even worse. For example, you’re given a limited number of miles each year. Crossing that boundary may cost you very much since each extra mile can be taxed for up to 15 cents. Normal Wear and Tear is accepted, but what exactly does “normal” mean? If you see a little damage to the upholstery, that might mean normal to you, but almost every time, the dealer is going to perceive “normal” differently. And since the dealers lawyer prepares the lease (you can never bring your own lawyer) there’s nothing you can do about it.


When entering a lease, usually people base their mileage estimation on their driving history. Few take into account the fact that the daily pattern may change at a given time and they will be forced to drive from 30 miles per day to 100 miles. What then? If you found yourself in a situation like this, than you better have deep pockets because you’ll be paying a lot of extra miles. Because of this, you can never calculate with precision the total cost of the lease because, there are variables that aren’t controlled by you at all times, therefore you’re forced to take a no so calculated risk anymore.


Calculating Car Lease Payments

There are a lot of factors that influence the rates you pay on your car lease. And considering the fact that the lease payment formula is not usually revealed to the clients, you should still have an idea of the way you can calculate your car lease payments. Moreover, no details are listed on your contract and the federal regulations don’t require the disclosure of this information.

By calculating your car lease payments you will be able to verify the math used on your car lease contract and detect any possible inconsistencies. The lack of knowledge in the matter is usually the reason why many people pay more expensive rates than they should. That happens because, for example you won’t be able to make sure that the dealer will consider the negotiated price you established or if the value of your trade-in car was taken into account. Moreover, you will be able to keep under control the fees or extra charges the lease dealer might add and also make sure the interest rate is the one you would expect.

Calculating Car Lease Payments

First of all, you should know the residual value which is usually a number expressed in percentages and multiply it by the car’s MSRP (Manufacturer’s Suggested Retail Price). The negotiated price will be used only at the next step which implies subtracting the residual value from the purchase price you negotiated with the dealer without taking into consideration the down payment. The result of this operation reflects the amount of depreciation the car will suffer during the lease period you agree upon.

The next step in calculating your car lease payments involves dividing the total depreciation amount by the number of months that form the term of the lease. You should know that the result will represent the first half of the monthly payment you will be obliged by contract to cover. This amount represents the money you will have to pay in order to cover the car’s depreciation while you lease it.

The fourth step involves the money factor that it’s given by the lease dealer. It is usually expressed as a decimal and it’s the same with the interest rate. So, as long as it’s low, the payment will be affordable. You should add the car’s negotiated price tag (minus the down payment) to the residual value of the leased car and then multiply it by the money factor. This result will represent the second half of the monthly payment on your car lease. The final step involves a simple add between the depreciation amount computed in a previous step and the result provided by the fourth step.

But you should keep in mind that the value computed doesn’t include sales tax. That sales tax is mandatory in many states and will increase the value of your monthly car lease payments. In order to take that into account as well you should apply the percentage of sales tax required by the state you lease the car from and add it to the monthly payment you computed in the fifth step. So, take into consideration this extra expense before facing the dealer.

So, after deciding the term of the lease and the annual mileage that will stated in the contract and influence the monthly payments you should take the time and do the math, just to be sure. There’s also the possibility to use a lease payment calculator that you can find online, but you will still have to know the some basic information in order to understand the data required from you and the significance of the results.

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