• How to Decide on the Best Car to Lease

    You need to take into consideration several factors to determine what the best car to lease is. You must have a fairly good idea of the purpose behind leasing the car, what your annual mileage is likely to be, the ideal seating capacity that you require and whether you want to lease a high-end car or a low-end car.

    Guidelines:

    • Consider the residual value of the car. While leasing a car you’re only paying for the depreciation value of the vehicle. You should know the residual amount of the car that you choose to lease. Residual amount refers to the resale value of the car when your lease period ends. If the residual value of the car is high, the price of leasing it will be low. If you want a luxury car lease, such as a Lexus, BMW, Porsche or Mercedes, the residual value is going to be high, while the monthly lease payments are low. Thus, if you want to purchase the car after the lease term ends, make sure you look into the residual value.
    • You may choose between the open-lease contract and the closed lease contract. The open-lease contract is usually recommended for business purposes or if the estimated annual mileage is either greater than 12,000 miles per year or is unpredictable. In this case, at the end of the lease period, you have to pay the difference in cost of the predetermined residual amount and the actual resale value of the car. This could be high if the market value of the car has dropped or if you have run more than the estimated miles. In a close-end lease, you return the car at the end of the lease period, paying only for extraordinary damages.
    • Read online reviews to find out which vehicle best matches your needs and lifestyle. List your daily driving requirements and select from car lease deals bearing this in mind.
    • Determine the maximum monthly payment you can afford and choose a car that falls within your budget. Don’t let the dealer know what monthly payments you can afford, so that you can negotiate a good price.

    With these few tips in mind, you will be able to lease a good quality car at an affordable price.