Does leasing a car make sense for you?
It will benefit you more to lease than buying if you:
• Don’t have enough money to buy the car
• Want to drive a car that you cannot afford
• Won’t likely go beyond the mileage cap in a contract—typically between 10,000 and 15,000 miles yearly
• Can take excellent care of the car’s exterior and interior, making sure you avoid nicks, spills and other cosmetic damage
• Want to lease another vehicle when your car’s present contract expires
Do you want to lease a car? See three Tips on how you can do it cheap:
1. Opt for cars that hold their value
Remember that when you lease a vehicle, you are not just paying for its lease. You are also paying for its depreciation, interest, tax and a few fees. Therefore, if you go for a car that holds its value, or does not depreciate like some orders, your lease payment will be lower.
When it comes to a car lease, a car that has good resale value has a definite “residual value.” What this means is the residual the amount remaining is still high when your lease term has ended. A lot of car websites and magazines publish a list of good lease cars every year. Search for “best residual values” on the internet. Many cars come with a three-year residual value of just 45%, while the 2016 Toyota Tacoma that has a residual value of 72.9% received the Kelley Blue Book’s Best Resale Value award.
2. Go for your best deal
Although you might have asked for quotes for the same car from some dealers, it might be very confusing to try to compare them. The reason might be that the vehicle a dealer has in stock comes with different options. For instance, a car may cost $22,000, while another is selling for $25,000 but is a much better deal because it has improved features, such as leather seats.
3. Request for lease payments and close the deal
Go for the car that has the best sales price, and has the color and options you prefer, and then talk with the salesperson that gave you the quote. Tell the person you have decided to lease the car. Request for lease payments at the sales price he quoted.
Take note: Make sure you set the terms. Inform the salesperson that you want a 36-month lease, with 12,000 miles and $1,000 in drive-off fees. Also, tell the salesperson to tell you the interest rate, which the lease is based on. In lease-speak, the interest rate is referred to as the lease factor or money factor. (Clue: With the aid of a lease calculator, check how your monthly payment changes based on the sale price, lease factor and others.)
If the monthly payments agree with your budget, then you are just about ready to strike the deal. However, before you do, tell the salesperson to deliver the car to you instead of picking it up at the dealership. In this way, you will avoid waiting at the dealership and receive upsells in the finance and insurance office.
Dealerships would not want to deliver cars. However, if you make your acceptance of the lease deal conditional on the delivery of the vehicle, they might decide to make an exception.