Some people will tell you that leasing a car is not an economical move. The truth is that when you are paying for a car lease, you are...
Some people will tell you that leasing a car is not an economical move. The truth is that when you are paying for a car lease, you are only paying for the depreciation that will occur while the vehicle is in your possession. Unless of course, you decide to purchase the vehicle after the lease.
Car leasing allows you to ride the latest cars of your choice, when you want, without having to bother about maintenance and repair expenses.
Car Leasing is in a whole class of its own with its own jargon and all. You need to learn the processes, methods of negotiation for getting the best auto leasing deals. Such knowledge will enable you get the best deals and understand what is going on.
So here are some of the best car leasing tips
« Equip yourself with car leasing terminologies. It is vital that you learn the language of car leasing. If not, you may not be able to get the best deals. For instance, capitalized cost (cap cost) is different from MSRP. Cap cost is simply the cost of the vehicle, the amount you pay after discount negotiation. While cap cost reduction is any discount that is not from the negotiations.
« What can you negotiate? It is not every aspect of car leasing that you can negotiate. It is best you know of those and not waste your time unnecessarily. You can negotiate capitalized cost, cap cost reduction, interest rate, buyout price, trade-in value, mileage cap and charges. But you cannot negotiate taxes, registrations, residual value, and acquisition value. These are set in stone and can't be changed.
« Only go for the right vehicle. You must consider the quality of the car, how strong and new it is. Also important is the residual value which will help you make the best negotiation.
« Be thorough. Do not dwell on the monthly payment as the only way to save money. Compare the entire cost of a car lease including fees, tax and of course the amount you put down. These calculations will help you make the best decisions.
« Go for available vehicles. Choose vehicles that dealers have in stock. They will be more willing to cut deals if they have the car in the lot than when it is special requests.
« Don't be in a haste to sign. Crosscheck the documents before you sign. Make sure there are no hidden charges, no blank spaces and no errors. Take your time to avoid paying more than you should.
« Know your mileage before hand. In case you want to go from lease to purchase, you should have an estimate of the mileage you put in already. Added mileage cost will mean more effective cost for the vehicle.
« Don't buy ad ons. Of course there are ad ons that are necessary like insurance but you can buy these elsewhere if they are available at cheaper rates. Make enquiries and compare prices before you buy.
The best lease deals will depend mainly on your ability to research on the best deals available and grear vehicles. Therefore take your Time to compare and make enquiries and of course, learn all you can about car leasing before delving in.