Benefits of leasing

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

First, you must to know the cost of purchasing 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
price of the auto-vehicle at the end of the lease 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 motor vehicle’s
sticker price and its estimated value at the end of the lease, plus a
monthly financing fee. This estimated price of the means of transportation assessment at the end
of the lease is what is termed in contracting jargon “residual assessment”. It is
the expected depreciation – or loss in assessment – of the automobile over the
scheduled-lease period.  For example, a motor vehicle with a sticker price of
,000 and a 50% residual percentage will have an estimated ,000
assessment at agreement end.

Now that you know the cost of obtaining out your contract, you have to to determine
the actual worth, also termed “market value”, of your vehicle.  So, how
much does your auto-vehicle 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 auto-vehicle’s retail assessment.

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 motor vehicle coming off a agreement is a little
on the high side.
Don’t despair though. leasing companies know as much that residual significances
on their vehicles are greater than their market significance and as such are
always on the look out for offers. You can knock down on the price of your
contractd 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.