Leasing has become an appealing form of financing a car for a number of reasons. For starters, the monthly payments are considerably lower than buying a new car and the down payment is also very minimal. Additionally, you get to drive newer models with the latest technology, comfort and safety features, and a full warranty. Car leasing is, however, not ideal for everyone; therefore, know the pros and cons before making such a commitment. Here’s how you can save more and get the most out of your car lease:
Put Down Larger Initial Payments
Leasing companies will lower the money factor if you increase your down payment. The money factor is what determines the amount of interest included in your monthly payments. This means that a lower money factor equals a lower monthly rate, which in turn lowers your monthly payments and the overall cost of your lease.
Take Out a Long-term Lease
Most car-lease terms range from 2-4 years, with others going longer than that. A 4-year contract usually provides for smaller monthly payments compared to a 2-year contract. You also get increased mileage allowance. However, avoid leases that extend beyond the car’s warranty period, especially if you are in a personal car lease deal. The manufacturer warranty is, in fact, one of the best things about car leasing. If you lease a car for too long, you risk spending extra on repairs and maintenance.
Negotiate
Leasing is just like any other kind of financing, so don’t be afraid to explore your options. There are several opportunities to negotiate that could save you a lot of money in the long run. You can negotiate the down payment, money factor, mileage limit, purchase-option prices, and much more. Understanding exactly how car leasing works will help improve your negotiation skills.
Use Leasing has become an appealing form of financing a car for a number of reasons. For starters, the monthly payments are considerably lower than buying a new car and the down payment is also very minimal. Additionally, you get to drive newer models with the latest technology, comfort and safety features, and a full warranty. Car leasing is, however, not ideal for everyone; therefore, know the pros and cons before making such a commitment. Here’s how you can save more and get the most out of your car lease:
Put Down Larger Initial Payments
Leasing companies will lower the money factor if you increase your down payment. The money factor is what determines the amount of interest included in your monthly payments. This means that a lower money factor equals a lower monthly rate, which in turn lowers your monthly payments and the overall cost of your lease.
Take Out a Long-term Lease
Most car-lease terms range from 2-4 years, with others going longer than that. A 4-year contract usually provides for smaller monthly payments compared to a 2-year contract. You also get increased mileage allowance. However, avoid leases that extend beyond the car’s warranty period, especially if you are in a personal car lease deal. The manufacturer warranty is, in fact, one of the best things about car leasing. If you lease a car for too long, you risk spending extra on repairs and maintenance.
Negotiate
Leasing is just like any other kind of financing, so don’t be afraid to explore your options. There are several opportunities to negotiate that could save you a lot of money in the long run. You can negotiate the down payment, money factor, mileage limit, purchase-option prices, and much more. Understanding exactly how car leasing works will help improve your negotiation skills.
Use a Leasing Broker
Leasing a car through a leasing broker offers several financial benefits. Since they have access to multiple manufacturers or leasing companies, they are more likely to get you the best possible deals. Oftentimes, they receive better rates or special deals that you can take advantage of. If you choose to renew your lease, consider doing so through the same leasing broker to avoid new customer administration fees. When choosing your leasing broker, confirm their legitimacy by ensuring they have the BVRLA (British Vehicle Rental and Leasing Association) certification.
Consider Cars That Hold Their Value Well
With car leasing, you are mainly paying for the depreciation that happens during the lease term. Therefore, go for cars that don’t depreciation fast so as to lower your monthly payments. Ensure you do extensive research and compare models to find vehicles that last longer. To get you started, several models of Toyota, Porsche, and Honda have historically held their value well.
a Leasing Broker
Leasing a car through a leasing broker offers several financial benefits. Since they have access to multiple manufacturers or leasing companies, they are more likely to get you the best possible deals. Oftentimes, they receive better rates or special deals that you can take advantage of. If you choose to renew your lease, consider doing so through the same leasing broker to avoid new customer administration fees. When choosing your leasing broker, confirm their legitimacy by ensuring they have the BVRLA (British Vehicle Rental and Leasing Association) certification.
Consider Cars That Hold Their Value Well
With car leasing, you are mainly paying for the depreciation that happens during the lease term. Therefore, go for cars that don’t depreciation fast so as to lower your monthly payments. Ensure you do extensive research and compare models to find vehicles that last longer. To get you started, several models of Toyota, Porsche, and Honda have historically held their value well.