Best deals on cars 2014

Tips

Over time, the cost of leasing several cars will likely exceed the purchase price of a new or used car.

Don't tell a car dealer you plan to lease until after you've negotiated the car's purchase price.

Beware salespeople who focus only on your monthly payment will be. Stay aware of the total price you'll pay, including down payment and monthly bills.

A car lease lets you drive a new vehicle without paying a large sum of cash or taking out a loan.

To lease a car, you simply make a small down payment — less than the typical 20% of a car’s value you’d pay to buy– followed by monthly payments for the term of the lease. When the term expires, you return the car.

Leasing a car has some drawbacks, however. Among them:

• You don’t own the car when your lease expires. You essentially rent, not buy, the car. So you don’t have equity in the car to use toward the purchase of another vehicle.

• Over time, say 10 years, the cost of leasing several cars will likely exceed the purchase price of a new or used car.

• Lease terms can carry steep penalties. You may have to pay penalties if:
-You exceed the number of miles in your lease contract.
- You fail to keep the interior and exterior of the car in good condition.
- You drive the car hard and inflict significant wear and tear on the car’s performance and appearance.
- You want to return the car before your contract expires.

Does a lease make sense for you?

Leasing is more beneficial than buying when you:

• Don’t have the cash to buy the car.
• Want to drive a vehicle that’s out of your purchase price range.
• Won’t likely exceed the mileage cap in a contract—usually between 10, 000 and 15, 000 miles per year.
• Can take good care of the car’s exterior and interior, paying particular attention to avoid nicks, spills and other cosmetic damage.
• Expect to lease another car when your vehicle’s current contract expires.

Exceeding the mileage limits on your lease can cost you 10 to 15 cents per mile. The dealer will inspect your car just before the lease expires, and you’ll also be charged for excessive wear and tear.

How to Lease

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