Car leasing gives drivers a lot of options when it comes to choosing and paying for a car. But not all leasing options are equal. The best car leases save you money while allowing you to drive the car of your dreams.
To find the best car leases for your needs, there are three key things you should look for.
- A high residual value – The residual value is the amount the car is expected to be worth at the lease term’s end. The residual value is important because it’s used to calculate the amount of depreciation that you’ll be paying for. A higher residual value means less depreciation and therefore lower monthly payments. You can sometimes lease a higher quality, higher-priced car and actually pay less each month than you would for a cheaper vehicle, because the higher quality car has a better residual value.
- A low money factor – The money factor, which is also called a lease factor, is the equivalent of an interest rate charged on a loan. The best car leases have a low money factor because that lowers your monthly payments. The money factor is listed as a small decimal, such as 0.00225. If you prefer, you can convert the money factor into an interest rate by multiplying the decimal by 2,400. For example, 0.00225 multiplied by 2,400 equals 5.4. So, a 0.0025 money factor is equal to an interest rate of 5.4 percent.
- Low fees – Other things that influence the cost of leasing include taxes and fees. There’s not much you can do about taxes, but charges such as acquisition fees or disposition fees can vary widely and are sometimes negotiable. The best car leases will have low, or even nonexistent, fees.
At Swapalease.com, we’re here to help people find the best car leases available. Whether you’re looking to take over a lease or transfer your existing leased vehicle, our Lease 101 can educate you on all parts of the leasing process. If you have any questions, don’t hesitate to contact our team of leasing experts.
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