When I see the advertised price on TV - Why is it different when I get to the Car Dealership?
What a great question. With a purchase customers have been trained to look at the purchase price. But with leases the monthly payment always is the top line advertisement. This can lead to a lot of frustration when you arrive at the dealership and see that the price per month just jumped 10 to 15%. Well this is the small print. And whether you are looking at Toyota Camry lease, a Chevy Malibu, or a Honda Accord, and comparing the cost. You need to make sure you are comparing apples with apples with the advertising that is in the press. So read the small print and understand a few of the following questions:
1. Are the taxes and fees included? Now depending on your state these can increase the monthly payment quite by as much as 10%.
2. Does my credit effect this payment? Credit scores do affect your payments, as well as your ability to get a lease, so work with your dealer to see what is possible with your current score.
3. What is the amount down they have built in to get to your payment?
4. Are you comparing the sale lease term, 27 months versus 36 months?
1. Are the taxes and fees included? Now depending on your state these can increase the monthly payment quite by as much as 10%.
2. Does my credit effect this payment? Credit scores do affect your payments, as well as your ability to get a lease, so work with your dealer to see what is possible with your current score.
3. What is the amount down they have built in to get to your payment?
4. Are you comparing the sale lease term, 27 months versus 36 months?
Here are some great Frequently Asked Questions from Buzz Doering- great read
Which of the benefits do you think would affect you the most?
Leasing gives you all the benefits of ownership without the risks! If you decide you still want to own the vehicle
at the end of the lease all you do is pay the residual (which is the part of the vehicle you had not paid for up until that time)
Some of the most common objections to leasing are:
Question: I have no equity.
Answer: The equity in a lease is the cash that you save. I drive too many miles! A very common misconception. Actually, the more miles you drive the more money you save. The excess mileage charges in a lease are less than actual depreciation in ownership.
Question: What about excess wear and tear charges?
Answer: If you owned the vehicle and went to trade it in, in the same condition, the appraisal would be less. You can always put yourself in the same position as if you had purchased the vehicle initially by merely paying the residual. Then you would not be charged for excess damage or mileage.
Question: What if I want to break my lease early?
Answer: The flexibility to break a lease is the same as the flexibility to break a loan. You may sell the vehicle in both cases and if you get less than the payoff you have to make up the difference.
Question: I’ve been burned before or I’ve heard horror stories about leasing.
Answer: It is true - there have been abuses in leasing. The old open-end lease is an example or the customers were not put in a proper lease - either too long or not for the proper miles.
Question: That won’t happen here because we will tailor the lease specifically to YOUR needs!
Answer: A big mistake customers make is to go for the lowest payment. Often times, that leads to the wrong lease and ultimate dissatisfaction by the customer.
NB: Always remember, term and miles are equally important as the payment.
Leasing gives you all the benefits of ownership without the risks! If you decide you still want to own the vehicle
at the end of the lease all you do is pay the residual (which is the part of the vehicle you had not paid for up until that time)
Some of the most common objections to leasing are:
Question: I have no equity.
Answer: The equity in a lease is the cash that you save. I drive too many miles! A very common misconception. Actually, the more miles you drive the more money you save. The excess mileage charges in a lease are less than actual depreciation in ownership.
Question: What about excess wear and tear charges?
Answer: If you owned the vehicle and went to trade it in, in the same condition, the appraisal would be less. You can always put yourself in the same position as if you had purchased the vehicle initially by merely paying the residual. Then you would not be charged for excess damage or mileage.
Question: What if I want to break my lease early?
Answer: The flexibility to break a lease is the same as the flexibility to break a loan. You may sell the vehicle in both cases and if you get less than the payoff you have to make up the difference.
Question: I’ve been burned before or I’ve heard horror stories about leasing.
Answer: It is true - there have been abuses in leasing. The old open-end lease is an example or the customers were not put in a proper lease - either too long or not for the proper miles.
Question: That won’t happen here because we will tailor the lease specifically to YOUR needs!
Answer: A big mistake customers make is to go for the lowest payment. Often times, that leads to the wrong lease and ultimate dissatisfaction by the customer.
NB: Always remember, term and miles are equally important as the payment.