What you should know when you lease a vehicle

Negotiating a vehicle lease takes some work on your part and here are some facts to consider.

Consider residual value:  Residual value is the difference between the value of a vehicle the day you lease it and the value of it the day give it back.  But keep in mind on top of this you pay interest and fees.

Provision to terminate the lease early:  Some manufacturers allow to you to terminate the lease early under certain circumstances and conditions.  If the manufacturer doesn’t allow this, check to see whether your manufacturer allows you to terminate the lease early with a payment.  This will allow you to buy the vehicle early and sell it on your own.

Negotiate your lease:  Lease is based on the sticker price or commonly called capitalized cost.  Dealers take this and calculate the lease price on a certain interest rate.  Negotiate both the sticker price and the interest rate which should help to lower the monthly lease payment.  Some dealers dropped the sticker price by five percent.

Stick to typical lease period:  Most leases are for three years, some allow five years.  Keep in mind most warranties expire in three years and you pay for costly repairs after that.