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6 Car Leasing Tips
A few well-thought out car leasing tips can end up saving you a lot of money when you go to lease a car. Understanding the basics, including car leasing rates and car leasing terms, will put you in a good position to come out of the lease on top and not owing a penny more. The numerous car leasing companies will likely not provide you with the definitions you need to know what is happening. It is your responsibility to learn them for yourself so when you’re negotiating the lease deal you know exactly what is being said.
6 Car Leasing Tips
Being well armed with information can only make the process of leasing a vehicle easier and more beneficial for you. Bad lease deals do happen, and when they do you could end up in a bad situation. These tips should help you avoid that.
1. Get Several Quotes
Obtaining as many car leasing quotes as it takes to find the best deal is a good way to go about leasing a car. However, don’t compare the quote from one leasing company with another or several unless the terms of the lease are basically identical. This means duration, allowable miles and any costs you’ll have to pay before you can drive the car off.
2. Understand the Money Factor
When you buy a car, you’re accustomed to hearing about the interest rate. When leasing, however, the rate of interest you pay is known as the money factor. Whether the difference in terminology is meant to confuse or simply to differentiate between leasing and buying is immaterial. Keep in mind, though, that the money factor is expressed as a multiplier rather than a percentage.
3. Negotiate the Lease Deal
It is a mistake to take the offer from the lease dealer as set in stone. Everything about a lease deal is negotiable, from the length of the contract to the sales price. While the minimum guaranteed future value may be determined by the leasing company, negotiating can help to sway the final monthly cost you pay.
4. Lease for 36 Months
You have your choice of leasing, typically between 36, 48 and 60 months. The best duration to choose is the 36-month lease. This allows the car to remain under warranty the entire time you have it. It also makes it so you can change cars after a 3-year period.
5. Close-Ended Deal
Another choice you have to make is close-ended or open-ended. Close-ended leases are better because they let you return the car at the end of the lease deal with no balloon payments due. All you have to pay for is exceeding your mileage allotment or for excessive wear and tear to the vehicle.
6. Get a High End Vehicle
If you’re eligible, it’s better to lease a high end vehicle than a lower quality one. This is because high end cars retain more of their value than others. The guaranteed future value of a high end car will be more. Since you only pay for the depreciation, if you put down money, your lease payments may end up as much or lower than if you leased a lower-priced car.
Don’t go into the lease negotiations unprepared. Learn the terminology and your rights in order to give yourself an edge when arranging a deal with a lease company.
