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What Do You Need to Know if Leasing a Car?

Sale price: The sale price of the car determines your monthly car lease payment. This price is great because of the lower the sale price, the lower your monthly payment. You can choose a car you can afford.

Residual percent and amount: The Residual value of a car is based on a percentage. The higher the residual percent, the lower depreciation you are required to pay. For you, this means that the higher the residual value, the lower your monthly payments will be.

Allotted miles: Signing a lease gives you a certain number of miles you can drive each year. You are charged a fee if you exceed the limit, and this fee is based on the number of miles you exceed the ones allotted. When leasing a car, it is important to know and understand the number of miles you are allowed to drive each month and the fee that comes with exceeding these allotted miles.

Disposition fee: This normally unavoidable fee is the amount charged by the company to cover the sometimes steep cost of cleaning and selling the car after you return it to the company. Most companies tend to charge a rate between $300 and $500.

Money factor: Also known as APR, this factor helps you. The lower that the money factor is, the better it is for you as a car lessee.