Renting cars, as opposed to buying them, is becoming increasingly popular. It allows you the flexibility to get a new car every few years. This prevents costly maintenance and enables you to keep updated on the latest auto innovations. Get the wrong auto leasing deal and you could end up paying more than anticipated.
Here are some tips for getting a better deal on any auto leasing agreement.
1. Understand What You Get
The biggest issue with money in relation to a leasing deal is people fail to understand what they’re paying for. You aren’t paying for the ownership of the vehicle you’re paying for the depreciation in the value of the car. This is more expensive in the long-term than buying a car and holding onto it.
You will have restrictions on how many miles you can rack up in your car, as well as various other limits. Understand what you’re getting for your money before deciding if this is right for you.
We would always haggle on the sale of a car and the other added extras. What we never seem to do is haggle over the cost of an auto lease. It’s perfectly acceptable to do so. The dealer might look like he’s offering a low price, but this isn’t the case. The price is a standard price and there’s room to haggle.
3. The Mileage
The limit on your mileage will seriously impact the cost of your auto lease. This is a tricky thing to get right. Trying to get the cheapest price by choosing a lower limit might cost you money due to the fees at the end of the lease. Be realistic about how much you expect to drive.
Take your average annual mileage and get a limit which is a few thousand miles above this. Saving on fees at the end of the lease will make your deal that much sweeter.
4. Stay Away from Long Leases
Make sure your lease lasts for about two years. Anything longer is dangerous because you’re leaving yourself open to repairs. You’re liable to contribute towards the cost of repairing the car. If you need new tires you’ll have to pay for them.
Shorter leases reduce the chance of any necessary maintenance. This lays any repair costs back on the dealer and you don’t have to take any responsibility for it.
5. Never Buy
You don’t want the option to buy the vehicle at the end of the lease term. You’re essentially paying a premium on a car you’ve already driven for the past few years. If you pay market price minus everything you’ve paid for the lease, which is highly unlikely, this would be a good deal.
Unfortunately, dealers will charge you roughly the average market price for the vehicle. It simply isn’t worth it.
The best way to handle this is to give the car back and lease a new car, or buy a different car without leasing it. The option to buy is a trap which can cost you thousands of dollars.