Publish Date - December 31, 2018
Author: Greg Thibodeau
Car Leasing Deal
Are Your Getting a Deal on Car Leasing?
Car leasing can be a great deal. Low monthly lease payments and the ability to drive a car you might not be able to afford otherwise are real benefits. However, getting a good deal on a car lease requires you to be very informed about your leasing choices.
Make sure you know if you are getting a good deal before your sign a leasing contract. There are many tools available to help you determine if you are getting a good deal, or not. Use myAutoloan.com's auto lease calculators to examine a deal carefully. Monthly payment calculators can also be useful to determine what kind of monthly payment should be available to you.
Car Leasing: A Good Deal for You?
Car leasing is a great deal for many people. It is easy to find out if leasing will be a good or bad deal for you. Answer these questions to determine if you are a good candidate for leasing. If you answer yes to most, leasing is a great option for you to consider.
- Are you disciplined about the upkeep of your current car, keeping it in good repair and addressing problems immediately?
- Do you drive less than 20,000 miles a year?
- Are you OK with driving the same car for a minimum of 3 years?
- Do you have good credit?
- Are you interested in low monthly payments?
- Are you willing to trade not owning a car for the chance to drive a better car than you could normally afford?
Lease Negotiation: The Key to Getting a Good Deal
Negotiating a good lease deal requires you to be prepared, knowledgeable about leasing and know when to walk away. Before you even consider negotiation make sure you are completely comfortable with leasing terminology and the leasing process.
After dong your homework, begin a negotiation with the car dealer by letting them know you are interested in leasing, that you consider yourself well informed about leasing and that you are not interested in playing games. Demonstrate your knowledge about the car you want to lease, its various price factors and let the salesperson know you have shopped around already.
Your goal is to negotiate the selling price of the car, NOT the monthly payments. Let the car dealer know you are prepared to lease today if your can get a good deal. Remember, your best advantage is your ability to walk away. If you become uncomfortable with the negotiation, lost in the numbers or are feeling pressured, stop.
Dealing with Leasing Fees and Charges
Don't be surprised by the fees and charges associated with leasing. Spend time getting familiar with what you will be expected to pay in addition to the car's price. Fees, taxes, and charges due at signing are usually required in cashiers check and include: your first month's payment, your down payment, the down payment sales tax, your security deposit and government fees for license, tag and registration.
Acquisition Fee - This is administration fee charged by the leasing company. It ranges between $200 and $900 dollars. You might not see it mentioned in the lease contract because it can be included in your capitalized cost. If you don't see the specific amount, be sure to ask about it. Some dealers charge a high acquisition fee to increase their profits. This fee is financed along with the lease, not paid in cash at lease signing.
The First Payment – Lease payments are due at the beginning of the first month they're due. You will be expected to pay your first payment when you sign your contract.
Security Deposit – Your security deposit should be about what you pay for a monthly payment. You get it back at the lease end minus any damage charges or disposition fees. Some people with excellent credit will not be required to pay a security deposit.
Disposition Fee - This fee is not always charged. It is due at the end of the lease and is supposedly used to compensate the leasing company for the expenses required to dispose of your car. The fee ranges from $250 to $500 but is sometimes negotiable. If you end up purchasing your car at the end of the lease, find out if you will still have to pay the disposition fee.