Car Leasing Secrets: Low Pay, Higher Interest
One of the car leasing secrets that you should know is that dealers would rather you go for a lease instead of purchasing a car to own. This in itself is one tip to keep in mind the next time you walk into a car dealership. The reason is pretty simple; when you purchase a car to own, your payments end anywhere between 3 to 5 years and after that you are free of any monthly dues. However, car leasing will keep you paying for as long as you want to have a car to drive and as long as you have a contract with a dealer. Of course, there are ways to get out of a car lease but this can prove to be quite difficult.
Dealers love to lease out cars because this gives them an opportunity to add more interest to any of the cars that they will lease out to customers. Basically, you can own a car without even having to place a down payment, but the longer that you pay for a car, the lesser you pay on the monthlies. Now although this may seem like something good, the car leasing secrets fact is that it's not because they add so much interest to the price of the lease that you may end up paying more for a car that you won't end up owning at the end of a lease. Even worse, you might not know how much you are paying for the car even at the end of the lease because there are no laws that state a dealer should disclose the full price of a vehicle they are leasing. This is one of the reasons that dealers who do lease cars charge so much interest on leases. Just keep in mind that even initial payments will help you but only in the slightest way because you will still end up paying an interest charge of some sort in the monthlies.
The car leasing secrets advice here is to make sure that you are able to pay a high principal payment so that you can avoid high interest rates on monthly payments. It's kind of like paying the minimum on a credit card where it ends up with lenders giving more finance charges. Leasing a car is not a bad thing but you have to realize that there are some car leasing secrets you should keep an eye out for, especially when it comes to dealings with your own money.
