1. How Leasing Works
Leasing is similar to renting. You pay monthly lease payments for a period of time. After the predetermined time is up, you return the leased car. You never own the car, but you can drive it for a couple years. One of the main benefits of leasing is that you get to drive newer cars, but in the long run, you may pay more when you lease.
2. Design Your Lease Deal
The recommended lease length is usually 3 years. If you lease for your 3 years, the car is usually still under warranty. This can come in handy if you need to have any repairs. Some people extend their leases to four or five years. This may reduce the lease payments, but in the long run, it is a waste of money. Extended leases mean more money invested in a vehicle that is not even yours. Furthermore, many lease agreements have mileage minimums. If you drive more than the designated allotted mileage, you will have to pay extra for miles. Before you visit any dealerships, you should contact your insurance agent. Certain vehicles may have higher insurance premiums.
3. Check for Special Lease Deals
Throughout the year, you may be able to find lease specials. Be careful of any hidden fees or costs of these deals.
4. Find a Dealership and the Car
Call different dealerships to find the car you are interested in. Ask to talk to a car salesperson. During this conversation, pay attention to how he or she talks to you. Is the salesperson impatient or pushy? This will give you a clue on this salesperson’s selling style. This information will help you during negotiations. Look for online reviews of dealerships. These customer ratings and reviews will also help you with negotiations. Get to know the dealership.
5. Negotiate Lease Payment
You may be able to negotiate lease payments but contacting different dealerships. Find the lowest offer, and ask the other dealerships to beat that price. Dealerships are usually willing to negotiate. Factor in the cost of down payments, length of lease, and the annual mileage allowance. One dealership may offer a lower monthly payment but also offer a lower mileage allowance. Consider all these factors while negotiating.
Ask the salesperson for a paper break down of all the costs and fees in the deal. You can find any hidden fees, and it will help you compare different lease contracts.
6. Review and Sign Lease
You will have to sign a contract and different documents. During this portion of the buying process, the salesperson may try to get you to buy additional items. Many of these extra items are unnecessary and a waste of money.
7. Manage Leased Vehicle
Since your vehicle is leased, you will have to return the car in top condition. Keep up the scheduled maintenance. You also should pay attention to the mileage. Do not exceed the mileage limit.
This breakdown on car leasing should help you successful lease a car!