Some Important Car Leasing Knowledge
Nowadays, many car companies strongly recommend that people choose to rent a car rather than buy a car. The reason they give is that renting a car costs less than buying a car. In many car rental advertisements, they publicize that renting a car costs only a small amount of money every month and that they don't have to borrow money to buy a car at all. However, the facts are inconsistent with the propaganda. In fact, the cost of renting a car is no less than buying a car. Even, car leasing is usually much more expensive than advertised. Car leasing has many hidden costs. If you are considering car leasing, here are some things to pay attention to. Click here to learn more about car leasing.
Interest and tax
Anyone considering renting a car should consider the interest and taxes to be paid. The interest and tax on a car rental will vary depending on the dealer and location. In fact, judging from the actual cost of renting a car, the advertised price is only the beginning. Although you can negotiate some preferential rental fees, it is difficult to negotiate interest rates and taxes. Although many places provide good tax incentives for car rental, this is usually not enough to compensate for the high-interest rates charged by car dealers.
Administrative cost
When renting a car, most car dealers will charge you two administrative fees. The first time I rented the car, the second time I returned it. In both cases, administrative costs range from $500 to $750. Obviously, this cost is for the dealer's management to handle the paperwork related to your lease.
Termination fee
If you need to terminate your lease before the end date of the term, you may be hit by the termination fee. Termination costs vary but are usually the full remaining amount of the lease contract. Many people terminate their leases early and find that they have to bear all the rent anyway. If you find that you need to terminate your lease in advance, you can visit a professional website. They can help find someone to take over the lease.
Mileage
Most leases allow you to drive 12000 to 15000 miles per year. Some leases have mileage limits as low as 10000 miles a year. Anyway, if you exceed the set amount, you will pay a lot of money for it. Usually, the charge for more than one mile is 10 to 20 cents per mile. This may not sound much, but it accumulates quickly. Extra mileage is where most car dealers make money by renting. The fact is that they set the mileage limit so low that it is almost impossible for most people to stay under the annual limit.
Auction fees
If you, unfortunately, exceed the mileage limit, the dealer will tell you that they have no choice but to sell the car you returned at the auction. Dealers may tell you that you are responsible for paying the difference between the price of the car sold at the auction and their initial value based on your staying within the annual mileage limit. Read your lease agreement carefully and make sure you don't agree to such a thing.
Down payments
When promoting car rental, most car advertisements promise low weekly rent, but they don't mention that car rental needs a down payment. This is usually a huge down payment. Down payment requirements are usually hidden in the small print of the lease agreement. Sometimes it is called capitalized cost. The larger the down payment, the lower the monthly rent. However, when calculating the real cost of leasing, you should always take the down payment into account. Know the real cost of your lease.
More expenses
So far, in addition to the fees we have mentioned above, many other fees can be found in the small print of the lease. This includes acquisition, documentation, purchase options, and disposal costs. Most importantly, all these one-time costs add up, it may become expensive in a short time.
Wear and tear
Any car that has been driven for several years will wear and tear. No matter how careful the master is. Small scratches on the car's body were expected. Of course, unless you rent a car. In this case, you will be charged a lot of money for every small scratch, scratch, or other defects in your rental car. This includes the interior and exterior of the car. Even the cleaning cost after returning the car will be too high.
Deposit
Let's just talk about wear and tear. Remember, most car dealers require people to pay a deposit when renting a car. In addition, remember that it is basically at the discretion of dealers whether they refund the deposit or not. The margin is generally between $500 and $1000. The best way is to ask the renter you know to see if they have recovered all or part of the deposit.
