Benefits of leasing

You’ve come to the end of your contract and you like you auto-vehicle enough you want
to keep it in the driveway. Just like purchasing a used vehicle, there is some
research to be done to nail a good deal.

First, you have to to know the cost of buying out your agreement. Read the fine
print of your contract and look for the “purchase option price”. This
price is set by the leasing company and usually comprises the residual
worth of the motor vehicle at the end of the contract plus a purchase-option fee
ranging from 0 to 0. When you signed on the dotted line, your
monthly payments were calculated as the difference between the car’s
sticker price and its estimated assessment at the end of the agreement, plus a
monthly financing fee. This estimated price of the auto-vehicle value at the end
of the agreement is what is termed in leasing jargon “residual value”. It is
the expected depreciation – or loss in significance – of the car over the
scheduled-lease period.  For example, a vehicle with a sticker price of
,000 and a 50% residual percentage will have an estimated ,000
price at agreement end.

Now that you know the cost of obtaining out your contract, you have to to determine
the actual assessment, also termed “market significance”, of your car.  So, how
much does your means of transportation retail for in the market? To pin down a good, solid
estimate you have to to do some pricing research. Check the price of the
vehicle, with similar mileage and condition, with different dealers. Use
online pricing websites, such as cars.com, Edmunds.com and Kelly Blue Book
for detailed pricing information. Gleaning pricing information from various
sources should give you a fair estimate of your vehicle’s retail value.

All you have to do now is compare the two amounts. If the residual significance is
lower than the actual retail significance, than you’re into a winner.
Unfortunately, there is a good chance a auto-vehicle coming off a lease is a little
on the high side.
Don’t despair though. leasing companies know as much that residual assessments
on their vehicles are greater than their market value and as such are
always on the look out for offers. You can knock down on the price of your
agreement vehicle with some smooth negotiating tactics. Put forward a price
that is below your actual target and negotiate hard until you wind up near
that figure.