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There are so many different leasing options it can be quite a task to find a good leasing option. There are a few fairly simple ways to determine if a lease is a good one or a bad one before you sign the paperwork. The first thing that needs to be done is determining the amount if any that is needed as a down payment on the vehicle.
For the most part, you should not have to put money down on a lease vehicle. However, this can vary depending on the credit rating of the person leasing the vehicle.
In some cases it is good to put some money down on a lease vehicle just in case there are any charges at the end of the lease that are unexpected, it will not be as big of an out of pocket expense. Another important thing to know about a lease is the mileage allowance, as well as the cost per mile if you go over the allotted mileage.
The majority of the dealerships that deal with leasing give the consumer around 15,000 miles a year for the vehicle. If the mileage is over the allowed mileage it is the norm for a dealership to charge anywhere from 10 cents to 25 cents per mile over the allowed mileage. This in itself can end up costing a lot more than anticipated in the long run at the leases end.
On most occasions it is possible to negotiate the mileage of a lease vehicle prior to signing the agreement. So, before you go to the dealership try to be aware of the estimated miles you will need in order to stay under the lease terms and not end up spending money you do not need to.
The sales tax is another way to determine if a lease is a good one or not. The sales tax can typically be added into the monthly payments, therefore it does not have to be an initial out of pocket expense. Not all dealers will do this, some prefer that the consumer pay the sales tax up front in order to keep the lower payments.
It is necessary to be aware of all of the small print on both sides of the contract. This way there will not be any hidden up front costs to the consumer at all. Make note if the monthly payments are written as not including the sales tax. This can be an added monthly expense that was not figured into the individuals budget.