10 Questions You Should Ask Our Auto Professionals Before Leasing
You Should Ask Our Auto Professionals Before Leasing
Are you interested in leasing a car but have never leased before? Here are 10 questions you should ask our auto professionals before leasing.
Keyword(s): auto professionals
Leasing a car isn’t rocket science, but it can be scary and confusing for first-time signers. Now you can get ahead of the game by showing up prepared with a list of questions to ask the auto professionals.
These questions will help you understand the parameters of your lease and what you can expect later on down the road.
Read on to learn exactly what you should be asking auto professionals before signing your lease.
1. Are There Any Discounts or Specials?
Right off the bat, you’ll want to know if there are any available specials on leaseable cars. Slow-selling models and cars that need to be cycled through will receive a discounted price or a discounted monthly rate for lease.
Maybe you came in for one car but saw that your budget can get you a lot more with a different discounted vehicle.
When you receive options for specials, we can spell out the exact monthly cost for you (after things like fees and taxes). Have one of our auto professionals tally this up for you so there are no hidden fees later on.
2. How Much Is the Down Payment?
There are a lot of factors that go into determining a down payment, so you’ll want the breakdown early on. Security deposits, title fees, registration fees–all these things go into the cost of a down payment for a car.
And if the down payment isn’t something you can fit in your current budget, let the professionals know. Sometimes there is room for negotiation on the down payment amount.
3. What Is the Interest Rate?
The interest rate is another one of those lease details that might be up for negotiation in the right situation. Make sure to bring up the fact that you believe the interest rate is too high for you if that’s the truth.
Not sure how to determine the interest rate?
It’s true that you’ll probably be provided a lot of information including what might seem like an obscure decimal number. But there’s an easy way to figure out the rate! If the rate isn’t explicitly stated, multiply the decimal by 2400.
This will take away all those zeros and leave you with a nice round percentage number that you can reflect on.
4. Are There Any Drive-off Fees?
The drive-off fees are usually some combination of the down payment and dealer fees that must be paid before you’re allowed to take the car home.
Because you are leasing the vehicle instead of buying it (you’re basically renting it), there are a lot of detailed fees that cover everyone involved. Sometimes there are fees for the agents or dealers, or maybe there’s a disposition fee for leased cars.
Regardless, ask up front for any drive-off fees that might not have been covered in the advertisement.
5. Are There Any Unmentioned Lease Fees?
Fees, fees, fees! They seem to be everywhere don’t they? Unfortunately, when dealing with expensive and risky car agreements there will be fees along every step of the process.
Ask about all the concerned fees including down payments, dealer fees, acquisition and disposition fees, and others. You might find that some are negotiable and some aren’t, but it’s a good idea to wrap your head around an entire expense.
6. What Is the Vehicle’s Residual Value?
For those who aren’t familiar with the term, the residual value is the value of the car at the end of its lease term. Most car values simply depreciate with time (unless we’re talking about rare sports cars or antique models).
It’s a good idea to go ahead and do your own research on a certain car’s residual value before you come to the dealer. The dealer will only be able to give you a percentage or an approximation of what the residual value should be.
When you lease a car, you’re only paying for the portion of it that you use before giving it back, right? Then a car with a lower residual value should have lower monthly rates.
7. What Is the Lease Term?
Most lease terms out there are the same: usually lasting about 24, 36, 48 or 60 months. But that’s not always the case. Of course, you’d want to know how long the whole lease is for, so don’t sign anything until it’s crystal clear.
Make sure to understand the term of the manufacturer’s warranty (or any warranty, for that matter) as well as the lease’s.
8. How Many Miles Are Included in the Lease?
This isn’t the same as the lease term, seeing as you won’t return a car only after you’ve driven a certain amount of miles. But you will have to obey rules on how many miles you can put on your car during the lease.
Sometimes a lease allows 10,000 miles a year, sometimes 12,000. Whatever it is, if you sign your name, make sure you stick to those rules. Going over your limit can be costly as you’ll be charged a fee for each mile you exceed.
9. Can I Transfer the Lease to a New Owner?
It’s a good idea to know the loopholes involved in a lease. What if you love the car at the moment, but could see yourself leasing it out to a different owner sometime during your term.
While this kind of thing isn’t usually allowed, some leases have become more lenient over the years, so it’s wise to ask in the beginning.
10. Do You Offer Gap Insurance?
Let’s say that you get into a wreck or you do something to damage your car during the lease.
Gap insurance could pay the difference between what you owe on damages and what the vehicle is worth if it’s wrecked or even if it’s stolen. The insurance could come with the lease, so make sure to ask up front.
Get More Advice from the Auto Professionals
Now you have your list of questions for the auto professionals and are ready to sign a lease with ease of mind!
Worried about all those other pesky car-buying or car-hunting factors? No need to stress! Check out the informative blog at Silverback Automotive for more resources from the experts!