Monthly lease payments are usually lower compared to monthly car loan payments. Leasing cars allows you to drive a new vehicle without having to pay a large amount of money in taking out a loan. When leasing companies offer car lease deals, it makes leasing a car even more affordable. Depending on the car lease, the amount due at signing will vary. There are often hundreds of car lease deals and specials offered so it can become confusing and complicated having to decide which one is the best for you. Many people become hesitant and indecisive when they do not know how to find the best lease deals.
There are a few things to consider to help you find the best car lease deals.
Many leasing companies will offer deals or specials on vehicles that are not getting leased out as quickly as they might have anticipated. Before accepting any lease deals or specials, make sure that the lease allows you to drive more than 12,000 miles. The deal might not be worth taking if the mileage limit is low. If you drive the car over the mileage limit, you will be charged additional fees at the end of the lease term. Lease terms normally range from 24 to 36 months. It is wise to know how much your own personal annual mileage is in order to sign onto a lease. If you underestimate your annual mileage, then you might exceed the mileage on the lease and be required to pay excess mileage fees. However, if you overestimate your annual mileage, then you might end up paying for extra mileage that you do not use. Either way, you would be spending extra money unnecessarily.
Be sure that the lease deal or special does not require a very high down payment. If the deal requires an exceptionally high down payment, then it might not actually be considered a “deal.” At the end of the day, you will still be paying a high amount but it would just be in the down payment rather than the monthly payments.
Make sure to add up the total cost of each of the different lease deals to compare which one is the best deal. You would need to add together the total monthly payments, the amount due at signing, and any other fees within the terms of each individual lease. An exact number range for prices of good deals on monthly payments varies for each type of vehicle. Monthly payments under $200 is generally considered a sweet deal, but it is not recommended to only compare the monthly payments between different lease deals because a car with a cheap monthly payment might have a higher total cost with the other fees and expenses. A better picture of a lease deal is to add up the total costs.
In order to obtain the total cost, you do not necessarily need a lease calculator. You can simply multiply the monthly lease payment by the number of months in the lease term. Sometimes the first month of the lease is included in the amount due at signing. Please do not forget to take this into consideration when you multiply it by the total number of months of the lease term since it might be one month less than the total number of months within the term. Take the product (from multiplying the monthly lease payment and the number of months within the term of the lease) and add that to the amount due at signing, which might include taxes, fees, etc. This will give you the total cost of the lease deal. You can do this with each car lease deal and compare the amounts of total cost in order to find the best lease deal.
Another easy way to find out whether a lease deal or special would be worth taking is to look at the invoice price of the car and see how much the leasing company is charging over that invoice price. If two vehicles do not have common characteristics such as the model and type of car, then it can be very challenging to assess which is really a better deal. What would you do if one vehicle is cheaper and the other vehicle is more expensive but has more upgrades? The two deals sound fairly even, so which one is better? Looking at the invoice price can help evaluate if it really is a good deal. If the invoice price of the cheaper car is $30,000 and it is being sold for $35,000, then it is being sold for $5,000 over its invoice price. If the more expensive car with more upgrades is being sold for $40,000 but the invoice price was $37,000, then it is being sold $3,000 over its invoice price. This would make the $40,000 car a better deal than the $35,000 car even though the $35,000 car is cheaper in theory.
It is also recommended to select a car that holds its value and does not have a high depreciation level. The monthly lease payments are mostly paying towards how much the value of the leased car diminishes. Be sure to do research on which cars have high residual values that make them good to lease. Leased cars with high residual values will be able to be resold at a higher price so that the car leaser does not lose as much money when either selling or returning the car after the lease term has ended.
It is very important to ask for the interest rate of the car lease. Please make sure to use a lease calculator tool to view how the sales price and any other lease terms might affect the price of the monthly payments. It is important to use the lease calculator in order to compare all the different car lease deals. The lease calculator and monthly payment calculator allow the lease deal evaluation process to be more convenient and easy. One of the biggest benefits of car leasing is that monthly lease payments for the lease term are typically lower than monthly loan payments for the loan term. However, if you want a car long term, it is probably more reasonable to take out an auto loan amount and buy the car.
A helpful tip is to make sure to ask the dealer for the sales price of the cars that you are interested in leasing without telling the dealer that you want to lease. Once you find the best sales price of the car that you want to lease, you can then tell the dealer that you want to lease the car but only at the price of the sales price that the dealer had previously offered. The reason for not initially telling that dealer that you want to lease is because sometimes dealers will raise the price on monthly payments if they know that you want to lease. You might be able to get a better deal if you ask for the sales price without showing interest in leasing first.
In order to qualify for a good lease deal, you will need to have a good or excellent credit score as it will show the leasing company that you are trustworthy and reliable. Good credit scores range from 670 to any score higher than 670. Credit scores between 580-669 are fairly decent. However, any credit scores below 580 are considered poor. Credit scores are usually dependent on how timely you are in making your credit card payments. If you have a good credit score, you have a higher chance to qualify for a lease deal. Having a poor credit score might prohibit you from qualifying for a good lease deal. It is recommended to check your credit score before looking for a car lease deal.