Van and truck leasing deals are certainly inviting to those who would like to own a new or different vehicle after every couple of years.
However, due to the interest loaded lease rentals, the lessee could end up working out more money than if he had bought a single van or truck in the long term. The best way to do this is by doing a thorough comparison of available van and truck leasing options before settling for the best one. Still, good negotiation skills and being on the lookout for specific loopholes is more than a necessity.
Comparing Van And Truck Leasing Deals
First off, most leasing deals are designed to look attractive at first glance. Unbeknown to the prospective lessee, the advertised leases are the cheapest it can get for a given class of leases. As various parameters are changed say, monthly mileage, car type or number of years, the costs of the lease may change tremendously. This alone necessitates comparing various leasing agreements in the market.
Perhaps it is best to begin by checking out van and truck leasing specials. These can be found on the various dealer or manufacturer websites. Scour through all the requirements especially how the periodic payments changes with term of the lease and any other conditions that may be stipulated in the fine prints. Many van and truck dealers will provide a calculator on their websites for calculating one’s potential lease cost by changing term and mileage. This procedure should be repeated for all the dealers or manufactures of interest.
To make a rational comparison it is best that the leases are compared based on similar terms. For example, monthly payments on a double cab van from same manufacturer and 10000 mile per year mileage for all the leasing companies. If this information is not clear outright then it makes sense to call or email the dealership with specific requirements.
Negotiating Van And Truck Leasing Deals
After comparison and receipt of quotations from various van and truck leasing companies, it makes immense sense to negotiate before signing a deal. This is when great negotiating skills are crucial. However, before the dealer hands over favorable terms, then the client should at least show that it deserves them to an extent. Notably, the client should have a high credit score that is credit worthy. Credit score determines the interest rates levied on rentals. If this rate is low the customer will pay less in the long term and vice versa.
The down payment is particularly another hotspot for saving money. When one applies for a lease with a down payment, the lease rental monthly or any other periodic amounts will be lower. Due to competition, some dealers lure clients with incentives such as rebates or discounts. For example, some will allow that the lease rental is not predetermined but will otherwise follow income trends if the van and truck lease is signed under the company’s name. It is also worth noting that duration influences cost of the lease. Longer leases are usually cheaper in terms of finance cost as compared to short term leases.
Some Mistakes To Avoid
Most leases will be based on certain special clauses whose change could impact the lease negatively as for the lessee. Specifically there are some mistakes that the lessee is better off not making for smooth operation of the lease. An example is exceeding the mileage limit. Extra mileage always attracts an expensive charge per mile and thus unless very necessary or cost justifiable, one is better off not exceeding the mileage financially.
Another mistake that is quite easy to omit is falling prey to very attractive lease agreements. In a bid to woo customers in a very competitive market, some customers could easily fall prey to very sweet incentives thus ending up in van and truck leasing deals that ideally they cannot afford. This sets the stage for financial difficulties that only means getting out of the deal gets even more expensive.
Many lease agreements require that even when the deal is cancelled the lessee still as to finish his lease charges or face a hefty fee for contract cancellation. Finally, it is not advisable to carry out major modifications on the van or truck on lease unless the contract allows for such. Main modifications not usually allowed include painting, installing other car parts and making major replacements.