Leasing can be a confusing process with so many new terms, an array of numbers to calculate, and a tricky car salesman. However, armed with the proper information just about any consumer can find the best lease deal.
Start by looking for manufacturer or dealer leasing specials. These are often advertised. Check the websites of your favorite brands looking for lease deals. Though the majority of deals advertised are only available to those with the best credit, you may be able to find incredible lease deals.
Shop for vehicles with high residual or resale value. Residual value is represented by a percentage. An ideal car to lease is one that retains 50% or more after 24 months.
Before you visit the dealer learn the MSRP and invoice price of the new cars you want to lease. Also find out the value of your trade-in. Print these out to have on hand during negotiation.
One of the biggest mistakes consumers make when leasing is to focus on a low monthly payment above anything else. It’s important to take a step back and look at the big picture. You want the best overall deal, and though saving on a monthly payment sounds great it can add to the cost of your lease.
Dealerships are required to provide consumers with an itemized list detailing all costs and fees. Carefully review the interest rate, residual value, lease term, and the down payment. Now you need to do a little work to determine if your getting the best lease deal.
Looking at the complete cost of your lease divide by the lease term to estimate your monthly payment. If your monthly payment is less than 2% of the MSRP it’s a good deal. For example: If you lease a 2010 BMW 3 Series with a MSRP around $34,000 for 24 months a good monthly payment would be $680 or less. Some current lease specials offer monthly payments around 1% of MSRP!
Next review the amount due at signing. If you can afford a large down payment it is recommended to pay as much as possible up front. Though the more you pay up front the less you’ll pay in interest over the term of your lease.
Consider your driving habits and review the mileage limits included in the lease. Make sure they meet your needs, if not you could end up paying thousands in mileage fees at the end of your lease. If you drive more than average, purchasing a vehicle may be a better option for you.
Once you have agreed on a lease deal, review the contract closely. Make sure you understand the reason for all fees and addtional costs. Ask the dealer any questions you may have, don’t worry about looking stupid. Remember a smart consumer learns all the facts before making a choice.
Request a free new car lease quote today and find the best lease deals in your area. Connect with local pre-qualified dealers willing to negotiate. Learn current leasing specials and internet only offers.
