Leasing an automobile is just like renting. The only difference between rent and lease is that leasing takes longer, usually a few months to a few years, depending on the contract. There are two kinds of lease: an open-end lease and a closed-end lease. Open-end leases are usually used for commercial businesses. In this type of lease, the lessee bears the expenses incurred at the end of the lease contract. On the other hand, a closed-end lease is used by individuals who want to drive a new car but don’t plan to buy it. This kind of lease is better than the open-end lease because at the end of the lease, the lessee simply returns the car to the leasing company without paying for anything, except if the car has been damaged during the time of the lease. Federal regulations strictly states that the type of lease should be indicated clearly on the lease contract to avoid confusion between the lessee and the leasing company. If you are planning to lease an automobile, read on.
- Decide on a car brand and model that you want to lease. Research online or visit car dealerships on which type of car is fuel efficient to save you precious dollars on gas and which has a low maintenance. Once you have decided, visit a car dealership carrying the brand of car that you want and talk to them about leasing your chosen model.
- Emphasize to the car dealer that you want to have a closed-end car lease. Indicate the number of months that you want to lease the car. The terms can either be 24, 36 or 48 months. The longer you will lease the car, the less your monthly payments will be.
- Have the dealer draw up the leasing contract according to your negotiation. Once the contract is prepared, read thoroughly and check if the type of lease is indicated, in this case a closed-end lease. You can ask the dealer any questions regarding the leasing contract that you want to clarify.
- If you are satisfied with the agreement, you can now pay the down payment and drive away in your new car. While the car is in your possession, take good care of it. Have it serviced regularly to avoid too much wear and tear. It will be cheaper to have it maintained than to pay for damages at the end of the lease.
Keep in mind the date when the lease contract expires. Return the car immediately when the contract has expired. The leasing company may fine you for a delayed return of the automobile. Be conscientious in paying your monthly payments so that they will not pile up. It will be harder for you to pay if they have accumulated. They may charge you for the mileage and other damages. But other than that, you can walk away after you have completed the lease. You will not be responsible to pay for the depreciation of the automobile while in your use.