Car Lease Payments and Residual Value
Car Lease Fort Lauderdale FL is simply the leasing of a vehicle for a certain period of time, usually for the lease of a specified vehicle with the option of purchasing it at the end of the lease period. Car Lease Deals is a popular choice amongst consumers who need to own a vehicle but cannot afford to buy. Car lease deals can be found anywhere from dealerships, wholesalers, private sellers and even on the internet. There is a wide selection of vehicles to choose from which to make your decision even easier.
Auto leases typically offer low monthly payments compared to retail car prices. They also offer high security in most areas of the country as they are virtually a license to operate the vehicle. Car lease agreements typically last for several years with no formal termination penalty, making them ideal for long term car leases. In addition, most vehicle leases typically provide free or low cost maintenance on the vehicle during the life of the agreement.
Car lease deals vary greatly depending upon your needs and situation. You have the ability to drive a new or used car while paying less than you would with a retail auto loan. Car lease deals also provide consumers with the ability to lease a vehicle without the added expense of buying it. Finally, leasing right of way cars give you the ability to finance nearly any type of vehicle.
Generally, a car lease or auto lease is a contract between a lessee or buyer and the dealership holding the automobile lease or car loan. The lessee is required to pay certain fees such as upfront rental fees, registration, DMV fees, and certain other additional charges, all of which are known as "Fees of Sale." This is in addition to the down payment, which is set by the dealership at the time of the signing of the contract. This down payment will become due when the leased vehicle is delivered.
Auto leases are not like conventional loans, and most consumers are unaware of what is involved with a vehicle lease at the end of the term. Often, at the end of the agreement, the lessee has no choice but to sell the automobile at the end of the term. In addition, many times, when the lessee completes the lease term, they must surrender their vehicle to the dealership. Car dealerships may also decide to make an offer for the vehicle at the end of the term; however, this can vary by each dealership. At the end of the agreement, the lessee is often given the choice to purchase the automobile or to return it to the dealership.
The main factor that affects the amount that you pay for a vehicle lease is your "Free Cash Flow." Free Flow is a figure derived by the Leasing Company that shows how much cash can be generated from a leasing activity. The lower the numbers, the more money you will earn at the end of your lease term. "Free Cash Flow" figures will vary depending on the type of lease that you have signed and the specific terms of your lease agreement. If you have a poor credit rating, your figures may be higher than someone with a good credit rating.
Your monthly payments will also be affected by your credit score. The less-than-perfect credit score that you possess will lower the amount that you pay towards leasing. As you prove yourself to the leasing company, you will improve your credit score and thus reduce your payments each month. After all, you will be able to pay your lease on time each month, and you will ultimately get a better interest rate as well as a lower monthly payment. Eventually, you may be able to refinance the vehicle which could eliminate any additional monthly payments, and lower the payments by hundreds of dollars!
Car Lease terms are very beneficial to those that understand them. Understanding what these terms mean will help you negotiate the best deal possible. If you know how leasing affects the residual value of your vehicle, you can negotiate a lease with a greater sense of confidence. With this knowledge, you may be able to negotiate a better price on a leased vehicle. Good luck!
