YEAR END LEASE DEALS: ARE THEY WORTH IT?
Posted on: Dec. 27, 2017 in Cars

At the end of every year, many car dealerships are in a mad dash to reduce their inventory. Sales and deals are everywhere including low down payments, low interest rates, and low prices. There are also plenty of lease deals to explore. Leases often seem like an economical choice for getting a new car. In fact, many who opt to lease will often continue to lease cars, getting brand new ones every few years.

But are leases all they’re cracked up to be? Before you lease a car, here are some things you should know.

Down Payments

You’ll most likely be asked to pay money down up front for the car. Putting a large amount down in order to lower monthly payments is a great strategy when you’re buying a car, but it can backfire on a lease. Putting down a significant amount up front means that if the car is totaled or stolen, you’ll be out a lot of cash since the insurance company will reimburse the car dealer and not you. You’ll have no car and your available funds will be gone as well.

Warranties

Lease periods can vary anywhere from two to four years. Before you sign a lease deal, you’ll want to find out how long the warranty will last to be sure that the warranty goes as long as the lease does. If the warranty runs out, you’ll end up paying out of pocket for maintenance on a car you’ll be turning back in to the dealership soon.

Mileage Limits

Do you drive a lot? Most leases have limits on the number of miles you can drive per year. These limits often range from 9,000 to 15,000 miles. If you go over the limit, you could end up paying a hefty fee per mile.

Appearance and Maintenance

You’ll want to keep your car looking as nice as possible and well-maintained, because failure to do so will cost you. When you turn in a lease, the dealer will generally then sell it as a pre-owned. They’ll want it in tip-top condition without having to put too much work into it. The dealer will also charge you for repairs and clean up that go beyond minor wear and tear.

Gap Insurance

Since cars depreciate (meaning, they lose value) as soon as they are driven off the lot, the value of the car may be lower than what the insurance company will reimburse if the car is totaled or stolen. That means you’ll have to cover the difference if you don’t have gap insurance. Be sure to ask the dealer about gap insurance coverage.

Eligibility

Leasing a car can be the right choice for someone looking for low monthly payments who is also willing to abide by the terms of the lease. If you have bad credit though, you may find yourself ineligible for a lease. Often these deals are extended to those with good credit, making them unavailable to those with a blemished credit history.

If you’re ready for a new car but your credit is keeping you from getting approved, CreditYes can help with our bad credit auto loan program! We can match you with a dealership in your area that will be with you ever step of the way. Our service is fast and free. Fill out our secure online application and get behind the wheel of your next car today!



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