Vehicle leasing is a straightforward process. If you start leasing you’re only paying for the amount of time that you’re using the car and how much it depreciates. Vehicles are the assets that are the quickest to depreciate. It’s a fact that a car loses its value really fast, so fast that you may take it for the first drive around the neighborhood and when you get back the car its worth less. With leasing you pay only for how much it will lose value while you own it. The difference between the original car value when the leasing started and how much will be worth when the lease ends (residual value).
Before you lease you need to do a very good research to find out the best lease programs on the cars that have the highest residual value on the car segment you’re looking for. A car with a good residual value when the lease ends is a very good car to lease. That’s why luxury car leasing its very popular. Luxury cars have high residual values, therefore low lease payments. You could be driving a brand new Mercedes Benz for a really low monthly payment. Leasing allows you to drive more car at a much affordable monthly payment.
You should get familiarized with the following leasing terms in order to take advantage of the great lease programs available nowadays:
Manufacturer’s Suggested Retail Price – MSRP
This is the full price that the manufacturer suggests the dealer that the car is worth to the normal customer. When leasing dealers will usually try to lease you the car at full MSRP and base your monthly payments on the term that you will be using it. If you lower the base price of the vehicle you will get even lower monthly payments than the one that the dealer is already calculating. Requesting for a price quote is a very good tool to negotiate this price as you can pressure the dealer based on what other dealerships have offered you.
When you finally agree with the dealer on how much the base price of the vehicle will be, this is called the cap cost (a diminutive of capitalized cost or lease price). As we said, a good lease price is the one that’s significantly lower than the MSRP. If the dealer tells you that lease prices are not negotiable, he’s not being honest and dismisses the chance to lease from him, because a lease price is always negotiable.
Remember you have to negotiate the car lease as you where buying, get the lowest cap cost available and you will get a good lease deal.
Find the best car lease programs today! Request a free lease quote and learn all you need to get the best lease programs on your new car. Connect with local pre-qualified dealers offering the top car lease deals in your area!