10 Money-Saving Tips for Leasing a Car
These 10 money-saving tips for leasing a car will guide you into the best lease possible. There are many benefits to leasing a car. One of the most important benefits is that the monthly payments are usually less than the monthly payments for a loan on a new car purchase. Another benefit is that if the car is brand new, it is typically covered by the manufacturer’s warranty for the first couple of years. Although there are many benefits to leasing a new car, there can also be potential dangers which can end up costing you tons of money down the road.
To make sure you are getting the best deal follow this
10 Money-Saving Tips for Leasing a Car:
1. Always negotiate the purchase price of the vehicle as if are going to buy it. Once you have a reasonable and firm price, then you can talk about leasing. This is because leasing a car essentially means financing a car for a set period of time.
2. One of the most relevant money-saving tips for leasing a car are to negotiate other aspects of the lease. In addition to negotiating the purchase price of the car, you can also negotiate the down payment, mileage limit, and purchase-option price. This can save you money down the road, but keep in mind that a higher down payment will mean lower monthly payments.
3. One of the lesser-known money-saving tips for leasing a car is to negotiate the money factor of the lease. The money factor is the number used by car leasing companies to determine the interest charge for the monthly lease payments.
4. If it isn’t already included with your lease contract, ask about GAP (Guaranteed Auto Protection) Insurance. GAP insurance is one of the most beneficial money-saving tips for leasing a car because it protects you if the vehicle is ever totalled or stolen.
5. When you are shopping around for a car to lease, look for vehicles that do not have a high depreciation rate. This is one of the money-saving tips for leasing a car that will help keep your monthly payments as low as possible.
6. Do not sign a lease that is longer than the vehicle’s manufacturer warranty. You want to make sure that the car is covered for the first 2-3 years, which is the typical lease period of a car.
7. Make sure you are aware of all end-of-lease fees and procedures. One of the best money-saving tips for a leasing a car is to take note of all policies so that you don’t get surprised by charges at the end of the lease term.
8. If you know you will drive more than the mileage limit of your lease, purchase extra miles upfront. Often times the unused miles are returned at the end of the lease term, while going over the mileage limit can end up costing you tons of money.
9. If you are going into a new lease with a trade-in, make sure the trade-in is deducted from the new leased vehicle’s capitalized cost.
10 .One of the best money-saving tips for leasing a car is to make sure that the leased car is worth the purchase price if you are considering buying it at the end of the lease period. If the car is worth less than the buyout price, you can simply walk away if it is non-negotiable.
Leasing a car definitely has its perks, but it can be tricky if you’re leasing for the first time.