Securing a great car lease involves a matter of choosing the vehicle that maintains its value and leveraging necessary information about the specials of the lease and its true value in the market.
Contrary to popular belief, car leasing is almost as hard for veteran car buyers since they get confused about the best way to lease a vehicle from time to time. The entire process can come off as a mystery to most, and it’s usually challenging to determine your monthly payment and which terms of your lease deal are up for negotiations.
In a nutshell, car leasing is just another method of financing a vehicle, and it is becoming increasingly sought after in recent years. In fact, one of every three brand new cars that leave its dealership is leased. Car leasing can be a practical alternative for individuals that depend on a car for their lifestyle and needs.
If you think that leasing is the best option for you, you need to learn how to look for the best deals on car leasing. This way, you get more value for your money in exchange for a reliable and brand-new car. That said, here are some tips you can follow when searching for the best deals for your lease.
1. Opt for vehicles that hold their value
When you lease a car, you’re also paying fees for its depreciation, not to mention tax, interest, and additional expenses. This means that if you go for a vehicle that depreciates less or maintains its value, you get to have lower lease payments than usual.
In technical terms, a vehicle that possesses a good resale value simultaneously has a firm residual value. This goes to show that the residual, or the amount that’s left, remains at a high level even when the terms of your lease have ended. Many car magazines and websites tend to publish a list of good lease cars annually, which can be of great help when you’re entertaining the prospect of leasing one. For this, you might want to search for cars that have the best residual values. Some vehicles only have a 45% residual value for three years, while some can have as high as 72.9%.
2. Price the vehicle.
You can also try a pricing website and look for a fair sales price and market value for the vehicle you want to lease, including its invoice price. The car’s invoice price is approximately what the dealer has paid for the car, and it usually represents the most affordable price you’re likely to discover. However, other models tend to involve many factors, such as cash rebates which can result in the dealer pricing the vehicle lower than its invoice.
3. Obtain quotes from dealers.
Once you have settled on a target sales price, you can now proceed to contact multiple dealers either through the internet or by asking for quotes directly from the website of the dealership. Make sure to ask in your email whether or not they currently have the car you want in stock. Don’t forget to ask for the car’s best sales price as well. At this point, it’s best not to mention that you plan to lease a car from their dealership — only that you want a specific sales price.
4. Check for special leasing offers.
Manufacturers tend to advertise special deals or leasing specials, especially when a vehicle isn’t selling fast enough. These widely-advertised offers offer low monthly rentals by altering the leasing formula slightly in several ways, such as offering a low rate of interest.
To check if it’s really a great lease deal, you have to ensure that it doesn’t require drive-off fees, particularly an expensive downpayment, or allow less than 12 000 miles.
5. Determine the best deal.
You may still find it confusing to compare the quotes you requested for the same car from multiple providers or dealers. Usually, the reason for this is that the vehicle that a dealer has in stock has varying options. For instance, one vehicle may be selling for a price of 523 000, while another may be selling for about $24 000 but is a better option since it comes with upgraded features like leather seats or advanced safety features.
One way to determine your best deal is to focus on how much your dealer charges over the car’s invoice price. You can see that while the car’s total price is constantly changing, the relationship to its invoice price usually reveals the best car lease deal.