Car Leasing Case Study

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Introduction
It all starts when I was watching the ad on TV for the car I always dreamed of, a BMW 528 x drive. The offer was so attractive given that the monthly payments shown were actually within my budget. Though the ad mentioned leasing not selling, therefor I need to know: what is car leasing? How the process works? How it is different than buying? Should I lease or buy my next car? How should I prepare for the lease? What is the deal I am looking for? How to negotiate a good deal? What are the after deal obligations? What are my lease end term options? And what happen if I decided to end the contract before the end of the lease term?
As in any other negotiation, I should take enough time to prepare properly before making any decisions that I might regret in the future.
What is car leasing?
Leasing is paying for the use of a car over a specified period of time, in other words it is a term of financing a car. In leasing a car, it is important to note that the total price of the car is important (even if I am only responsible for part of it) and it can be negotiated with the dealership; the owner of the car is the leasing company not the dealership, the dealership acts as an agent for the leasing company and when the deal is generated I will be dealing directly with the leasing company; I agree to make regular monthly payments for the specified period, maintain the car, pay the car insurance, local taxes and tags fees, and I am expected to stick with the mileage indicated to the end of the lease term.
I will be hold accountable for any damages or extra mileage above the specified limits.
Also, in a lease the monthly payments are upfront, not like when you buy the car where you pay at the end of the month. This means that i...

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...the above and make sure that I will be having a good deal.
I will be reminded a month a head of the lease term on the date of returning the car and if I am exploring other options I need to decide within that period.
It is not a coincidence to note that “forced arbitration clauses are included in nearly all car sale contracts and leases. Franchise laws in all 50 states give automobile dealers a special monopoly over new car sales, allowing them power to decide what they want to include in their sale/lease contracts. Consequently, consumers purchasing or leasing a new vehicle are a captive audience with no choice but to enter into the sales/lease contract put before them parties when they cannot be resolved on their own to Arbitration”.( retrieved from http://www.fairarbitrationnow.org)
(Please see exhibit 3: Sample of Vehicle Purchase/Finance Arbitration Agreement)

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