Plenty of good lease deals can be found with a few minutes of research online. It is important to note that uneducated consumers can end up paying thousands of dollars extra for a new car lease. Taking the time to research now will save you both money and stress when you lease a new car.
Compare Vehicles: Many people lease luxury cars because they are cheaper to lease than buy. Compare multiple brands and models looking for the best leasing specials and incentives. Keep your mind open and you’ll be more likely to find the best lease deal.
Residual Value: Shop for models with higher resale/residual value. The higher the lease residual value, the smaller percentage of the vehicle price will be paid to lease. Models with extremely low residual values are usually a bad deal.
Capitalized Costs: The capitalized cost or cap cost is the total price of the vehicle which will be used to calculate the lease price.
Negotiate Cap Cost: Whether leasing or buying you can negotiate the price of the vehicle. All you need to do is learn the MSRP and factory invoice price of the vehicle. When you begin negotiating start with the factory invoice price and work up aiming for less than MSRP.
Trade-in Value: It is best to research the value of your trade-in before visiting the dealer. This is easy to find online, print it out and take it with you for future reference.
Cap Cost Reduction: The amount you pay at signing, plus any credits such as incentives or the value of your trade-in. The capitalized cost reduction is subtracted from the cap cost. The smaller the reduction, the higher your monthly payment.
Security Deposits: A refundable deposit required before the lease contract begins. In some cases you can pay addtional security deposits and lower your monthly payments.
Depreciation: When leasing you pay for the amount the vehicle depreciates over the length of the lease. See residual value above.
Money Factor: You can use the money factor to estimate the annual interest rate of your lease. Just multiply by 2400.
Monthly Payments: A lease with $0 down and high monthly payments may be cheaper than one with a larger down payment and low monthly payments. Sit down with a calculator and determine the total amount you’ll end up paying for each lease offer.
Closed-End Lease: A closed-end lease allows you to return your vehicle at the end of your lease term. Pay for additional mileage and wear, often this is taken from your security deposit. Closed-end leases are less risky.
Open-End Lease: An open end lease forces you to purchase the vehicle at the end of the lease for a specified amount. Many business or high mileage drivers use this kind of lease. This form of lease is more risky because you may be charged more than the current value of the vehicle.
Request a free lease quote today and learn all you need to find good lease deals in your area!
