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Expert Lease Pro includes Invoice and MSRP new car prices, residuals, and rebates and incentives for all new vehicles.

 

 
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What is a Lease and How Does It Work?
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Calculating A Lease Payment
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Strategies for Negotiating
Obtaining the Terms of a Lease
Do's and Don'ts of Leasing

 


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Disadvantages of Leasing


Nothing can make a price drop like a better deal from someone else. Use competition to your advantage: Request a free, no obligation quote from each of our partners listed to the right. Then when the salesman tries to convince you that $500 off sticker is a "great deal", you can say, "Gee, that's funny. I got three offers right here that are $1000 less than your price." Then watch his price drop to 100 bucks over invoice.
  1. Edmunds.com
  2. Cars.com
  3. CarsDirect
  4. Autos.com
  5. FordDirect

Early Termination

The terms for early termination of most leases can be very unpleasant for the consumer, particularly if the termination is forced, i.e., the car is totaled in an accident or stolen. In such cases, insurance pay-outs often fall far short of the balance due on the lease leaving you holding the bag. Many leasing companies will offer "gap insurance" for only a few dollars a month extra which is a wise investment.

There is a very good reason why it is so expensive to get out of a lease. Consider that your monthly payment is made up of two parts: depreciation and interest. The depreciation part of the payment is calculated by taking the difference between the cap cost and the residual (the total depreciation over the lease) and dividing it by the number of months. In effect, you are paying off the depreciation with equal payments each month. Graphically, the depreciation is being paid "in a straight line" (see figure).


But we all know that a car depreciates much more rapidly in the earlier years with the biggest hit occurring the day you drive the car off the lot. So when you terminate the lease before you have paid all of the depreciation, you will likely be required to pay the difference between what the car is worth and how much you have paid on the depreciation. This difference is often referred to as the "gap".

Some lease contracts will really stack the deck against you with the terms for early termination. For example, some Nissan Motors leases require the sum of all remaining payments be made before they will release you from the lease. Always read the fine print of the lease contract and understand your exact liabilities for early termination before you sign.

Insurance Cost

Leasing companies tend to require higher amounts of insurance coverage than you may normally carry. This could impact your insurance cost considerably. Find out what the requirements are and get an estimate from your insurance company before signing on the dotted line.

Higher Credit Requirements

Since the expensive car you will be driving for the next 2-6 years belongs to someone else (the leasing company), the owners want to be assured that you will make the payments on time and will not trash their car. Therefore, the credit worthiness standards tend to be higher for leases than conventional loans. In other words, if you have a troubled credit history you may have problems getting approved for a lease.

Mileage Limitations

Almost all leases limit the number of miles per year by imposing fees typically 10 to 15 cents per mile over 15,000 miles per year. If you put a lot of miles on a car, these fees can add up quickly.

No Ownership

Technically, when you lease a car, you are renting it. The leasing company retains ownership of the car and you pay for the privilege of driving (and maintaining) it. For many who have "owned" cars all their lives, this may be a psychological barrier.  

 

Expert Lease Pro includes Invoice and MSRP new car prices, residuals, and rebates and incentives for all new vehicles.

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Without a doubt this is the most hassle-free method of buying a car we know of. Getting a price from these guys is so quick and easy, that it should be the first step in any new car acquisition.

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Benefits of Using Expert Lease Pro

  • Learn the in's and out's of leasing. 
  • Spot  hidden fees and other rip-off tactics before it's too late.
  • Increased Knowledge = Confidence = More effective negotiator.
  • Maintain control of the numbers.
  • Make the right Lease-Buy decision.
  • Save Money, Time, and Frustration.
  • Ideal for auto-buying services and consultants.