| If a low monthly car payment is your goal you will | | | | 10 or 15k per year is not enough! If you know |
| come across auto leasing offers. The payments | | | | this beforehand you might want to consider |
| are usually lower than auto financing rates | | | | negotiating a higher yearly or total mileage |
| because you generally do not pay off the entire | | | | allowance. |
| purchase price. | | | | The difference between purchase price, minus |
| When you lease a car you are renting it for the | | | | down payment and residual value is the portion |
| agreed period of time from the leasing company. | | | | that you will be paying off during the lease term. |
| They will purchase the car of your choice and | | | | Together with a calculated "leasing fee" which |
| then lease it back to you. | | | | includes interest and profit margin for the leasing |
| It is possible to calculate very attractive sounding | | | | company. |
| monthly payments that can be adjusted up or | | | | You should also be aware that the condition of |
| down in many different ways. Generally, you will | | | | our car will be assessed at the end of the lease. |
| have to pay a big chunk up front. Then, the car's | | | | If there are any damages or excessive wear and |
| residual (remaining) value at the end of the lease | | | | tear you will most probably be charged for the |
| period is estimated. Since this value depends | | | | repairs. |
| largely on the mileage, you will be limited to a | | | | Make sure you will be disclosed what the residual |
| certain amount of miles either per year or overall. | | | | value for your car will be, and if you have the |
| Once you exceed this limit you will be charged | | | | option to purchase your car for this value at the |
| either per mile or per 100 or 1000 miles. | | | | end of the lease term. A fair leasing company will |
| If you are a commuter in one of the large metro | | | | give you this option. |
| areas chances are that the advertised mileage of | | | | |