Archive for June, 2008
Is it possible to transfer your car lease responsibilities to another private individual? The answer is yes. There’s what we call the Swapalease, a concept made popular by it. It’s a coined term that means shifting the responsibilities of one lessee to another individual without ending or changing a contract.
With this process, you can actually save money from not paying early termination fees and instead pay only a minimal fee for administrative costs. You might be thinking that the new lessee or the “buyer” as they call it is not to reap great benefits from this deal. Think again, this is a good opportunity for the buyer to test drive a late-model car inexpensively for a short time; this can be the best time for the buyer to decide on his next move for a car plan while enjoying a luxury car!
But there’s one thing that both the lessee and the buyer should not forget and that would be to include the leasing company in the picture. It’s the car leasing company’s sole responsibility to approve and conduct the whole process.
So if you don’t want fuss about a trade-in or paying a huge sum for early termination fee, you have the option: swap!
So what happens when your car lease is about to end? It is said that a month before your lease end your car leasing company will give you a call to tell you that they would be picking up your car and that an inspection has to be done to determine your car’s value. They might also be offering you a price for buy-out, a new lease with another vehicle, a trade-in, or a complete brand-new car purchase.
In this case there are several questions that you need to ask yourself before you jump into a new decision:
- Is it best to buy out or return the car when you have exceeded the mileage or if there’s car damage? If ever you return the car, can you negotiate for the mileage and damage repairs expenses?
- Would you benefit more when you extend your car lease or trade it in for another one? Do you need to pay for the wear and tear of the vehicle or excess mileage of the vehicle? In that case, would it be better to release yourself from the car lease?
- If ever you decide to purchase, is the purchase price negotiable? If that is so, how much you think is the right amount? Do you still have to pay for the mileage and the damages?
There’s no fixed solution to any of these choices. Like anything else in this world, it’s on a case-to-case basis and requires a wise decision with right timing. You can do this by doing your homework. Again, research on the best options and read and ask credible sources for their experiences and advice. This will get you further than you thought.
In car leasing, you have the privilege of choosing the make and model of the car you want. With car renting, you only have to choose from among the available models the dealer has.
The price you need to pay for car renting is based on an hourly or weekly basis. These prices are set by the rental company. For car leasing, the leasing company buys the car from the dealer with a price that has been negotiated with the customer. It then loans the car back to the customer.
These are basic differences that a prospective customer must know before he blunders on using either of the words, giving away the impression that he’s an easy prey to double-crossing dealers.
They say ignorance of the law is not an excuse for conviction. The same principle is best applied by lease dealers on their prospective customers. On the following paragraphs, we will be showcasing the varied ways dealers do a work-around customers’ limited knowledge of car leasing to close a deal at their best advantage.
Trick number 1 is that car leasing is always cheaper compared to buying. This is actually negated by the fact that there are a lot of hidden charges that are not calculated when you are given the amount for the monthly payments. In a setup wherein you can lease at the lowest price you can pay monthly for an extended time. Hence, in this case you will be gaining more mileage and higher fees for the wear and tear of your car.Ten to twenty cents per mile is the usual charge for an extra mile exceeding the total amount agreed upon on the contract. So be cautious of the car leasing deal you’re choosing; don’t get blinded by the low monthly payment; learn to find the catch.
Trick number 2 is giving you inaccurate interest-rate information. Bear in mind that the right calculation is that of the money factor multiplied by 24. It makes a big difference, right? So when you plan on leasing a car, do the math yourself.
The third trick has something to do with early termination. They say it’s easy for you to just walk away from a lease if you have a sudden car change in the middle of the contract. The truth is most car leasing companies have ceiling-high penalties for early termination of contract or that you may pay for the remaining years you are under the contract. All these are usually stipulated in your contract. So before signing it, read everything, especially the minute details stated there. Usually, there are critical information written in fine print on the contract, which you should be more cautious of, because they are usually about extra charges to be incurred under contract.
Another trick dealers use for customers is the notion that rebates and price discounts don’t apply to car leasing. On the contrary, car leasing price is always based on discounts, negotiations, and rebates. This means you should always know your rights too.
Some dealers might also sell you items and deem them required. For whatever it is, always refer to the signed contract.All these among many others that might soon sprout as the car leasing game continues are just the tip of the iceberg. There are a lot more that sometimes only experience can tell. The best option would be to look for a person with a good experience in car leasing and learn from him. That’s the way it is to win the game!