How to Lease Cars
If you prefer driving a different car every three or four years, or if you're looking for a way to decrease your monthly car payments, consider leasing an automobile. Auto leases offer an alternative to buying. But before agreeing to lease a car, make sure you fully understand the leasing arrangement.
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Instructions
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Get your personal credit score. Lenders will review your credit file before approving your auto lease application. Order your report and examine the contents for inaccuracies such as wrong account information.
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Alter your credit habits. Improve your likelihood of acquiring a lease by raising your credit score, if necessary. Get rid of debts, pay your creditors and learn how to control your spending.
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Save money. Auto leases do not require down payments. But if you want the lowest payment possible, save money for a down payment and reduce the lease price--between 10 and 20 percent of the price.
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4
Compare lease prices. Visit different dealerships--at least two or three--and compare prices. Negotiate with the salespeople and inquire about rebates or other incentive programs to decrease the vehicle price.
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5
Buy sufficient mileage. The average lease allows you to drive between 10,000 and 12,000 miles a year. Driving over this limit results in additional fees. If you anticipate exceeding your allotted miles, purchase additional mileage.
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Get gap insurance. If you're involved in an auto accident and total a leased car, your auto insurance pays the fair market value of the vehicle. Oftentimes, the amount owed to the leasing company is more than the market value, wherein borrowers have to pay this difference out of pocket. Gap insurance covers this difference and offers peace of mind.
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Take care of the automobile. You don't own a leased automobile, and you'll have to return the car in good condition. Maintain the automobile during the lease period to avoid additional fees. This involves performing routine maintenance and repairing any damage.
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