Categories: Leasing a Car
New Car Lease
How to Lease a New Car
Leasing a new car is a good way to drive a brand new car very few years. A new car lease can offer you the opportunity to drive a car you couldn't afford to buy with low monthly payments. Sound interesting? Follow these steps to learn how to get the new car lease that's right for you.
Understand How Leasing Works before Leasing a New Car
After you have found the car you want to lease, it's time to get on the Internet. It's of the up most importance you thoroughly understand the leasing process before leasing a new car.
Leasing is like renting a car in some ways. You pay to use a car for a certain period of time when renting and do the same thing when leasing. Leasing is not designed to save you money in the long run, but it can help you get more for less money on a monthly basis.
Understand you will never own the car you lease unless you choose to buy it at the end of your lease. You aren't building equity when leasing but neither are you burdened with all of the costs of ownership either. The best thing you can do is research new car leasing and make sure it's the right choice for you. A leasing contract is very hard to terminate so be uninformed of your contractual obligations.
Information to Know before Negotiating a New Car Lease
- Start researching new car leasing long before you are actually ready to lease. The more armed you are with information, the better lease terms you will get for your new car.
- Become familiar with new car leasing terminology.
- Find out which cars have low depreciation schedules and make good lease cars.
- Review your credit history and fix any problems areas before you approach a dealer about a lease. Good credit is a prime factor in receiving good lease terms.
- Understand how lease payments are calculated.
New Car Leasing Programs, Rebates and Incentives
When you are lease you're entitled to new car incentives and rebates. Once you know what kind of car you want to lease, scour the Internet for any potential savings. Check myAutoloan.com's rebate and incentives page. Many car manufactures offer leasing specials designed to push up sales numbers of particular models of cars.
Don't take New Car Leasing Ads at Face Value
Leasing ads often sound too good to be true; sometimes they are and sometimes they aren't. Watch for hidden costs not clearly defined in the new car leasing ad. When reading or getting more information about a new car leasing ad you should:
- Check to see if the monthly leasing payment includes taxes and fees.
- Determine how large of a "down payment" is required. In leasing this is called the cap cost reduction.
- Have a clear understanding of additional fees like bank fees or security deposits.
- Always ask about annual mileage limits.
Estimate your Lease Payments
This used to involve long hours with a pencil and a calculator. Now its easy. Use an Internet based loan calculator like ours at myAutoloan.com. You can quickly determine a number close to what you will be paying for your lease. It's important to be knowledgeable about your expected lease figures before entering into negotiation.
Solicit New Car Lease Quotes
Once you know what kind of car you want to lease use the Internet to ask for leasing quotes from several leasing companies at once. Having several quote offers to choose from puts you in a better negotiating position.
Negotiate Your New Car Lease Payment
- Solicit bids from the Internet and your local dealers.
- Use your lowest bid and then challenge other leasing companies to beat it.
- Check the bid against your own calculations and understand any discrepancies.
- Double check the "down payment," loan terms, monthly payments and mileage allowances.
- Make sure the residual value is reasonable and compare the vehicle's price points to the Kelley Blue book
Close Your New Car Lease
Carefully review every piece of paperwork you are signing. Check the figures again against your own to make sure what you agreed to is actually on the contract.
There is no need to purchase any additional items like extended service contracts. Look for any dealer ad-ons in your contract and ask for them to be removed before signing the lease. The only additional items you might consider purchasing should be GAP insurance in case your car is totaled or mileage overage insurance.
You should never feel rushed about signing a contract. If you feel you are under pressure leave or stop the process. Your number one advantage in a lease is your ability to walk away. Ask questions if you have them and don't sign anything you don't fully understand.