Car Leasing Center – Car Lease Terms

startmoment ik kyoto 2009
Image by BondBeterLeefmilieu via Flickr

When you are leasing a car there are general things that you need to figure out before you get to the Dealership. Things like how many kms per year will you drive, are you planning on putting any money down and another is the length or time or the car lease term that is going to work for you.

Typically the car lease terms are 24, 36, 48 and depending on the manufacturer there may be a 60 month option. Sit down with your Lease Manager and go through the various terms with them and they will let you know how the term affects the car lease payment.

Pay attention to the rates and residuals from one term to the next. A shorter term may have high residuals (the higher the residual means, in most cases, a lower payment).

The typical car lease terms are 36 and 48 months. I would not recommend going any longer than the 48 month term. The whole idea behind a lease payment is that it is lower than a finance payment because you are only paying for the amount of the car you are driving for a set period of time. If you go more than the 48 month lease term – to the 60 month term – you have almost paid for the whole car and you still don’t own it. Really think about the term and again, get the Lease Manager to do a compairson for you and to show you the differences so you are better informed and can make a better buying decision!

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