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!