Leasing is a great option for consumers looking to drive a new vehicle for less. Since you’re only paying for the amount of the vehicle you ‘use’ over a short period of time, between 2 and 4 years, you get the best of the new vehicle for less.
The price of a lease is determined by the following factors:
- First payment, including the capitalized cost reduction and any extra fees.
- The monthly payment amount.
- Total number of monthly payments.
- Additional end of lease charges.
With these figures you can calculate the cost of your lease. It is a good idea to compare the complete lease cost to the purchase price of the vehicle to make sure you’re not paying more. The worst deal when leasing is to pay more than the purchase price.
Monthly Payment Amount: When leasing your monthly payment is based on the difference between the vehicle’s sale price, or capitalized, cost and its estimated value, or residual value, at the end of the lease term. This difference plus any addtional fees is the amount financed. Since you are only financing a portion of the vehicle’s value, you can expect your monthly payments to be less.
Down Payment Amount: Though many new lease deals offer $0 or low down payments, it’s a good idea to put some money down if you can afford it. By making a down payment you will decrease the amount financed, lowering your monthly payments and decreasing the amount of interest you’ll pay over the period of your lease.
Credit Score: Since leasing is financing, nothing affects the cost of your lease more than your credit score. If you’re considering leasing in the future it is a good idea to work to improve your credit before hand. The best lease deals are only available to those with excellent credit history. The worse your score, the more you’ll pay.
Shopping for New Lease Deals: It is best to compare different makes, models, and dealership prices to find the best new car lease deals available. Consider making dealerships compete for your business. A dealer will be willing to waive fees or lower your monthly payment to keep you from going to a competitor.
Shopping for Financing Deals: Just as with new car buying you can shop for financing offers from multiple sources. The best places to check for top leasing deals are private leasing agents, banks and credit unions. Compare these deals to those offered by dealerships and select the best.
Research Before You Negotiate: It is important to research leasing before you visit the dealership. Print out the information you find and keep on had for reference during negotiation. Request a free lease price quote today and we’ll supply you with everything you need to get the best deal on your next vehicle!
