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Written by Chad Cook
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Wednesday, 02 August 2006 |
Point out auto-leasing and people will likely automatically assume a low-
monthly fee. There is actually more than what meets the eye, and a
bunch of fees are implicated at various stages of the lease procedure.
At the beginning of the lease, you must pay a refundable security
deposit, typically equivalent to one monthly payment, to protect against
non-payment and any incidental damage done to the car at the end of the
lease. You are also required to pay an administrative charge, called
acquisition fee. Additional fees are licenses, registration, name and any
state or local taxes.
During your sublease, you are expected to honour your monthly fee
obligations. Any failure to do so will result in late-payment charges.
You must pay any traffic tickets, emission and safety inspections and
continuous maintenance costs. Fininshing your lease prematurely will consequently end in substantial early termination charges.
At the end of the sublease, you are expect to pay any excess mileage costs, charged at 10 to 20 p a mile. Any incidental damage done to the car, and deemed to
be above normal, will result in extra tear-and-wear charges. Finally, if
you determine not to purchase the vehicle, then you must pay a disposition
fee. |
