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The financing of a new car must be carefully studied beforehand. Too often, an allegedly advantageous offer turns out, contrary to advertising arguments, to be very expensive or even too expensive for the client.
Do not be fooled by advertising for rental that puts low monthly amounts in evidence but does not mention any additional costs (such as necessary repairs, takeovers, full mandatory casco). Whoever has the means and who wants to deal only with the full tank must opt for leasing with maintenance.
Basic rule: monthly lease payments x 3 = monthly fees
You never become the owner of a leased vehicle. He still belongs to the leasing company. In case of defects, the complaints must not be addressed to the leasing company but the supplier of the vehicle (garage). This triangular relationship can lead to complications.
Transfer of the leasing deposit to a blocked account
In recent years, leasing companies have continually increased bonding. Even before the start of leasing, it is often necessary to pay an amount of several thousand francs. Given this development, the TCS recommends that the deposit is transferred to a blocked account – a procedure identical to the rules on rented accommodation – which only the two parties will be able to use and, in the event of non-satisfaction during the first 12 months, the judge must dispose of. This recommendation is consistent with the regulation of the lease law on money guarantees.
The residual value of the leased vehicle
Without the indication of the residual value, it would not be possible to check whether the interests appearing in the contract are correct. The residual value must therefore always be specified in a leasing contract. This value must look directly in the contractor on a table of residual values.
Purchase at the end of the lease
A leasing contract is not a purchase contract. In a leasing agreement, it is agreed that the object must be returned at the end of the deal. The lessee has no right to purchase. Dealers often promise the lessees that they will be able to buy the item on advantageous terms at the end of the contract. Such promises are in principle equally valid, but since they are formulated verbally, they can not be proved. It is quite possible that a car dealer will not remember when the time comes. This is often the case when a car with many kilometers and a low residual value is still very profitable when it resumes.
A high residual value is more interesting
It is also often more advantageous for the lessees who want to “take back” the car at the end of the contract, to agree on a residual value as high as possible. Negotiating at the end of the deal and during the term of the agreement is usually preferable. However, it is essential that the money saved through the lower lease payments be set aside until the end of the deal. To avoid difficulties when the contract expires, it is also essential to agree on realistic annual mileage and to comply with it.
2. Cash Purchase
The most significant discounts are obtained by paying cash. Several offers and a good sense of negotiation help to make a good deal.
3. Purchase on credit
If you decide to pay in installments (installment sale) or to use the small credit, it is worthwhile to compare in advance the interest rates of the various credit institutions. The monthly payments can cause significant financial problems in the event of unforeseen events (accident for example).
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The person who finances his vehicle with credit must provide an appropriate reserve in his household budget and conclude a comprehensive beneficial casco, possibly with a high deductible.