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Eric Larson
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| Eric Larson is a Lbry.com contributor |
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If you are in the market to lease a vehicle, you will hear the term “residual value” recur like a leitmotif. A residual value does not only affect your monthly payments, but is equally used by leasing companies to determine any penalties should you break your lease early and how much to pay if you decided to buy the vehicle at the end of your lease.
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When your lease is up, you can simply turn in the keys and lease another car or buy a new one. But how about getting out before the lease ends? Maybe you can’t afford the sky-high payments on that silky Jaguar JX V6 model anymore or you’ve just had a baby and you need a larger and more spacious vehicle? Unfortunately getting out of a lease is not as easy as getting in! A leasing contract is difficult and expensive to terminate early.
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$250 to dispose of your vehicle, $1000 for extra miles you put on the clock and $200 to replace the light bulb and the worn tyres - lease agents constantly nickel-and-dime consumers when their lease runs out. Here’s a rundown of what can trigger those fees, and some steps to take in self-defense. Disposition fee: leasing companies charge you if you choose not to buy the vehicle at the end of your lease.
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Have you been refused a car lease? Chances are you have less flawed credit history. Know what’s involved and what you can do to build good credit history.
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Want to calculate your monthly lease payment? Consider using a lease calculator
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Understanding how to calculate your monthly lease payment makes it easier for you to make an informed decision. Yet, most of us shy away from the “complicated” math on our lease contract, leaving it up to the dealer to do the payment formula.
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It’s the classic dilemma that faces every auto-consumer out there: Pay cash upfront or forego the ownership and pay monthly settlements instead? Buy or lease for a new set of wheels?
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When leasing a car, it’s easier to stick with the same company for your auto insurance. What you don’t know, however, is that you may end up paying too much for your coverage and it’s better to look elsewhere for lower rates.
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To lease, you have two possible choices: either lease through a dealer’s finance source or through an independent lease company. A conventional dealer has a captive finance source, which can be the car manufacturer’s financial company, such as BMW Financial Services, Honda Motor Credit or General Motors Acceptance Corporation (GMAC), or a major national bank such as Chase Manhattan.
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Hybrid vehicles’ popularity has sharply grown from a couple of thousands in early 2000 to close to 300, 000 by the end of 2005. The trend is rapidly catching with the auto-leasing industry with generous tax credits and incentives on offer if you go green.
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142 free articles by Eric Larson
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