The vehicle lease market is in great shape right now for new customers looking to lease. Dealerships are currently offering some of the best leasing deals ever and we have all the information you need to take advantage of these deals.
Leasing is a good alternative for new car consumers who are interested in lower monthly payments and a more flexible way of owning a vehicle. Leasing monthly payments can often be as low as $200/month while monthly payments on the purchase of a new car or truck can be upwards of $600/month for the same vehicle, sometimes even more.
A great strategy when determining your lease term is evaluating what type of manufacturer’s warranty is offered for the new vehicle. For example if the manufacturer is offering a 36-month (3 year) warranty on the vehicle, a savvy consumer will choose a 24-36 month lease term. This ensures that the leaser will never have to pay for maintenance or repairs for the entire time they drive the vehicle. Buyers who choose to purchase their new car or truck eventually have to start paying out of pocket for these expenses when the manufacturer’s warranty runs out.
The key to understanding how pricing works for car leases is understanding what the residual value of the new vehicle is. Residual value refers to how much the car will be worth after the term of the lease. For example consider you want to lease a car that is worth $25,000 brand new for 2 years. Over the course of those 2 years the cars value depreciates by $5,000. This depreciation in value means that when you return the vehicle to the dealership it will then be worth $20,000. $20,000 is the residual value of the vehicle. In this example, when you set up your lease payments you will need to finance the $5,000, plus interest and fees over the 2 year term.
Seeking out vehicles with high residual values is the best way to pay lower monthly prices. Negotiating the initial price of your new car or truck is also a great way to shave hundreds or even thousands off the price of your lease. By requesting a free, no obligation price quote you can discover lease prices at dealerships in your neighborhood. You will also be informed of the dealer invoice price for any vehicle you request a price quote for.
During negotiations you can use your knowledge of the true dealer invoice price to help you negotiate for a lower initial buying price on the new car or truck. Going back to our example, if you negotiate that $25,000 price tag down to $23,000 then you’ll only have to finance $3,000 over the course of that 2 year lease term. That’s a savings of $2,000!
Request a free lease vehicle price quote now to find the top vehicle leasing discounts in your town!
