Leasing a Car in New Hampshire
Leasing a Car in New Hampshire
A brand-new car represents many things. It can be a status symbol, an accomplishment, the most logical choice, a luxury, a necessity, something that is functional but can also bring joy. Try watching television for half-an-hour without seeing multiple commercials with the specific message of leasing—not owning—a new car or truck.
In a hardly noticeable shift, we are suddenly in an era in which a brand-new vehicle is possible every couple of years without either the investment or financial backing that was once required. Leasing a car is an increasingly popular alternative to buying a new vehicle.Leasing a Car vs. Owning a Car Just in case there aren’t enough everyday decisions, when it is time for a new car, you can often find yourself struggling over whether it makes the most sense to lease or own a car. Ask yourself these questions. Do you prefer to drive a new car? Is building equity not a priority for you? Do you take extremely good care of your vehicles?
In general, do you drive a fixed amount of miles annually without many long road trips? If you answered yes to all or most of the following questions, leasing a car is right for you. If you answered no, however, you are more suited to owning a new or used vehicle. As appealing as swapping out a new vehicle every few years may sound, it is vital to note that car leases are often very specific. Reading the fine print on the contracts is of utmost importance as various leasing agents have strict, but varying rules, relative to mileage and wear and tear.
How Do You Register a Leased Vehicle in NH?
Every state has its own nuances, although the process of registering a leased vehicle is almost identical to that of registering a new or used vehicle you financed or bought outright. New Hampshire is no exception. Unless the dealership handles the registration, it typically needs to be done in person at your local town clerk’s office. In addition to providing proof of residence and paying the applicable fees, be sure to bring a copy of the lease agreement, as well as the Lienholder’s name and address.
Early Buyout Options
This is one of two buyout options offered by most dealerships. This option enables you to purchase your leased vehicle before the contract ends. Identifying whether this is a viable option can be challenging and requires evaluation of the lease-end residual value as identified on the lease, the amount of money you still owe on the vehicle, and whether the vehicle depreciated faster than expected, making it less than market value (a cost that is often incurred by the driver). Since most individuals lease a vehicle with the expectation that they will not be buying it, the early buyout option is typically considered in three scenarios:-Driver is going over monthly allowed mileage;
-Driver has not kept up with maintenance;
-and Significant damage to the interior or exterior of the vehicle has occurred.
In general, depreciation fees prohibit an early lease buyout from being an economical decision. Therefore, even if one or more of the above factors apply, assessing end-of-lease buyout options is often the most realistic option.
End of Lease Buyout Options
On both a state and national level, drivers tend to opt for this lease buyout option most often. This option requires that you pay the residual value of the vehicle at the end of the lease agreement. Residual value is based on what the car is expected to be worth at the end of the lease. This amount can sometimes be negotiated and is typically noted and agreed upon in the initial lease agreement. Determining whether a lease-end buyout is a viable option requires a bit of research on your part. First, you’ll have to identify what the vehicle is worth on the current market as well as the sale price of a vehicle in similar condition. If the buyout price is less than or equal to the market value, you are happy with the car’s overall performance, you are too in love with the car to give it up, and you can finance the buyout price at a reasonable interest rate, the lease-end buyout is the best option for you. Sure, maybe you planned on swapping out for a new car, but sometimes plans are meant to be changed.Turning in a Lease
Approximately 90 days before the end of the lease, the leasing company will contact you to set up an inspection of your car. The leasing company charges you for any damage that is considered “normal wear and tear.” This phrase refers to any damage that is going to cost more than the average amount of money is classified as excessive wear and tear. This inspection is often conducted by an independent third party and takes less than an hour. The inspector will assess and qualify damage as dents, dings, scratches, and scrapes on the car’s exterior, cracks or excessive pitting in the windshield, excessive tire, and damage to the upholstery that cannot be repaired with normal refurbishing.Based on the amount of excessive wear and tear identified in the inspection, it may prove more cost-effective to have the repairs made by an outside party prior to returning the car to the leasing agent. Don’t forget to return all of the car’s original accessories such as extra keys, cargo covers, original floor mats, spare tires, and any third-row seats that may have been removed.
Deciding to purchase or lease a new vehicle is a big decision. While leasing is an increasingly popular method of car ownership, it is important to note that many lifestyles may make leasing a car cost-prohibitive. But with a nominal amount of research, you can identify whether a car lease is optimal for you. Once you have committed to the concept of leasing a vehicle, the other available options help to make a car lease a realistic choice for a range of individuals.