When you want to get a new car, there are two main ways you can do it. You can either buy a car, or you can choose to lease it.
Leasing a car is very similar to renting an apartment – you pay a fixed monthly fee and get to use it as long as the contract lasts. Once the lease is up, you can choose to buy that exact vehicle or start a new lease with a new car. Or you can simply walk away from the car dealership.
Car leasing is getting more and more popular each year. Here, you can see some of your options or keep reading to learn how to get the best car lease.
Pay attention to the residual value
Over time all things – including cars – lose some of their value. This is called deprecation. When you lease a vehicle, you are paying for that deprecation plus taxes and some additional fees.
That is why our goal should be to pick a car with a high residual value, i.e., one that will be worth as close to its initial price as possible once the lease period is over.
A car with a good residual value is the one that has a good resale value so search Google for “best residual value” or “high resale value car” as these trends tend to fluctuate and change.
Discover the cars actual price
Before you sign a lease, it would be wise to do some research. First, find out what is the fair market value for the car you want to lease.
Many sites can make your research much more straightforward, such as Kelley Blue Book, Edmunds.com, or the National Automobile Dealers Association. Visit these sites to discover the actual invoice price that the dealer most likely paid for the car. Expect that to be the lowest sum of the lease that you can find – barring any additional incentives and deals. And speaking of those…
Search for special deals and promos
Some leasing companies offer a customer cash rebate which enables them to offer their cars for even less than the invoice price.
Sometimes, a particular car model simply is not popular enough and might get stuck at the dealer’s lot. To move such specimens away, dealerships often offer some kind of lease special.
Some offer low interest rates on that model. Others might offer a low initial down payment or no down payment at all.
However, when signing up for a leasing deal, keep an eye out for any hidden additional costs or low mileage limits that might impact your enjoyment of the car in the future.
Shop around
Once you know the accurate price of the car that interests you, it is time to do some legwork. First, ask around and see which dealership has the offer that works the best for you.
Visit several dealerships’ websites and request a quote from them. Then, mix and match and compare and contrast until you find your dream deal.
One thing is essential during this stage, though – do not mention that you are interested in getting a lease. Instead, just ask for the sales price.
When looking for a good deal, do not be afraid to look into the finer details, such as the car’s interior or infotainment system. All those minor differences between models can pile up and be the deciding factor for you.
In general, you can spot a good deal by how much higher it is than the invoice price you found. To put it simply – the smaller the difference, the better the deal.
Ask for lease payments and close the deal
When choosing the ideal car for you, keep in mind you will be stuck with this car for as long as the lease lasts, so every detail counts. Once you have discovered the model with the features and the look you want, it is time to reach back to the dealer who offered that car to you. Ask for a lease at a price that is the same as the selling price.
Keep in mind that you are the one who is in control here. That means you get to negotiate on the mileage limit and drive-off fees. Also, the monthly payment for your lease might change according to the sale price and other lease terms, so make sure you are familiar with those things before signing any paperwork.
Finally, once you get behind the wheel of your brand new car, remember that you do not own it. So do all the necessary maintenance and take good care of it, so you don’t have to pay the “excessive wear and tear” penalties once the lease is over.