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What You Need to Know to Get the Top Lease Deal
Car leasing is very different from buying a new vehicle. By leasing a new car you agree to pay only for the use of the vehicle for a specified period. Leasing can cheaper, but it is important to understand the following important components to ensure that you get the best deal on your new car lease. Capital Cost Capital Cost is the price of the vehicle. Before visiting the dealer, you should arm yourself with the MSRP and the factory invoice price of the vehicles that you are interested in leasing. You can negotiate the capital cost with the dealerships. The best deals are new cars priced less than MSRP. Once you and the dealer have agreed on a capital cost, then deduct available rebates, incentives, and specials. This should never be negotiated with the capital cost - such savings are bonus. Capital Reduction If you make a deposit or trade in your old vehicle, you can reduce the capital cost further. Bringing down the cost of capital will reduce your monthly payments and interest expenses. Make sure you know the true value your old car before you negotiate. You can find this information online. Residual Value The lease payments cover the amount of depreciation the car experiences while driving. Residual value is usually expressed as a percentage. The higher the residual value, the lower your monthly payments and total costs. Although it is probably not possible to negotiate the residual value, you can shop around. Look for similar vehicles from different manufacturers to find the best car lease residual values. Money Factor It is important, do not confuse the money factor with the interest rate. Remember that the money factor is a decimal number, while the interest rate is a percentage. You can multiply the money factor by 2,400 to estimate the interest rate. The lower the money factor, the better the lease deal. Lease Term The lease agreements are usually in months, 24, 36, etc ... The longer the length, the lower your monthly payments, but also more interest. Most cars begin to lose value dramatically after 24 months; a shorter lease period is often a better deal. Make sure the warranty covers your vehicle during the term of the lease. APR The APR is the annual interest rate, taxes and service fees. Look for a slightly lower APR than you’d expect for a car loan. Always shop around for the best price. It is important to note that no single factor is will make a great lease deal. Research and choose the best option. Request a free no-obligation leasing price quote from an online service such as www.TopCarLeaseDeals.com. Connect with several pre-qualified dealers and find special lease deals in your area.
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