When you make up your mind on leasing you definitely know why it’s your choice. For example, with a lease, the monthly payments are less than financing a new car purchase; the down payment is often minimal; the vehicle is typically brand new and covered by a manufacturer’s warranty, and it puts you on track for a new car in a short time. While there are distinct benefits to leasing, there are some things to be aware of. We are going to reveal some tips that can help keep you on the right track and get the best car lease deal.
Showing up at a leasing company knowing what you are looking for may play into your hands. Do your research ahead of time to find out what makes and models are the best for your needs. It is also better to give some serious thought to prioritize your preferences.
Choose the model you want – research mileage, make, model and color from a great variety of Grand Prix Motors Vehicles. Decide exactly what vehicle you want, including color, interior, options, etc. Check leasing specials that could provide a shortcut to substantial savings for you. The cars in these lease specials are usually priced below the manufacturer suggested retail price (MSRP) and represent a good deal.
Find the vehicle you like, identifying its model year, the make and model, and the trim level. In case you struggle to choose, your personal lease expert will help you.
Deciding how many miles you’ll put on your car lease agreement is a very important part of the leasing process. It will impact the price of your monthly payments and it will be used to judge your vehicle inspection at the end of your lease agreement.
It’s common for leasing contracts to have annual mileage limits of 10,000, 12,000 or 15,000 miles. Being honest with how many miles you drive each year will mean that you avoid extra charges from the finance provider for going over what was agreed in the original contract.
For some drivers, the prospect of going over their mileage limitation is a very real one. Mileage fees can be anywhere from 10–40 cents per mile for each mile over your limit. Consider buying your average miles in advance, perhaps negotiating a lower rate up-front.
To get your annual mileage, choose a week that fits your normal driving habits and multiply the total miles covered by 52. After doing this, add in 5% extra of your total yearly miles for any unplanned journeys, this way you have some wiggle room in case you need it.
Consider starting your lease with no money out of pocket, especially if your lease has a very low money factor. While many leases in the market have special low money factors, not all do.
If you’re leasing a vehicle with a high selling price and a high money factor, you may be better off initiating that lease with a significant down payment. But if you’re leasing a more modestly priced vehicle with an incentivized special rate, beginning the lease with little to no upfront money may be the way to go.
Making a fairly large down payment will certainly reduce your monthly lease payments, but it probably won’t save you a ton of money compared to the overall cost of ownership while you lease. Another thing is that there is no guarantee you will get your down payment back should your leased vehicle be stolen or totaled in an accident.
Knowing how much you can afford to spend each month on a car lease will help you decide which type of car to choose. Ultimately it will mean a lot less stress for you when it comes to the monthly payments. You may use our Calculator to have approximate numbers.
Think of the amount you can invest up-front if you are going to do so. If you have enough saved up to put more towards the initial payment, it’s going to make the rest of your deal more manageable with the budget you have.
You should also keep in mind that missing a monthly payment can negatively impact your credit score and lead to additional charges. Although a car lease has more components than just the monthly payments, so make sure you know your numbers:
We explained the lease terminology like capitalized cost, cap cost reduction, MSRP, money factor, residual value, and others in our posts here.
Knowing the fees you might be charged for may be unpleasantly surprising. So it’s better to make sure you know what things you are responsible for. According to DMV.org, penalties for terminating a car lease early include requiring you to pay some or all of the following:
The Residual Value represents the estimated value of the car you’re leasing at the end of the lease term. This figure is an estimate, set by the leasing company and expressed as a percentage (for example, 55 percent of the original value) or a price (the car will be worth $20,000 three years later). When you lease a vehicle you are paying for its depreciation, plus interest, tax, and some fees.
To keep your monthly payments as low as possible, look for cars that don’t depreciate faster than average and hold their value.
Many car websites and magazines publish annual lists of good lease cars. Search for “best residual values” to find out how much the most affordable options are going to be worth.
It is a good idea to negotiate the lease conditions as if you were going to buy the car. Many aspects that are included in a cap cost and some additional charges may be flexible. The mileage limit, down payment, and purchase option price can also be negotiated.
With Grand Prix Motors there will be no need to negotiate too much as we offer the cheapest deals possible for your choice of make and model.
Get your Free Consultation today and your personal lease expert will talk you through each and every detail of your lease deal.
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