Finding the best car lease deals is part of the process in discovering the best offer for you. Many lenders are offering different deals for the cars they have available to lease. Knowing this should allow you to conduct your research with the knowledge that the right lease opportunity is at your fingertips.
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Today, the best place to research deals is online. The Internet offers a wealth of information on basically everything you would want to know about getting the best lease deal on a new car. However, you do have to know exactly what type of vehicle you are looking for, especially if you are like us and want a specific year/make/model/trim/color combination.
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The first thing you should do when trying to get a deal on an auto lease is look for a car with a high residual value. The residual value of a car is its estimated value at the end of a lease term. The authoritative source for this information is the Automotive Lease Guide, or ALG for short. When you lease a car, you pay for its depreciation and use over a set amount of time; so, if you can find a car that will maintain a high residual value, you will end up paying less money per month for your leased vehicle. The next thing you should do is bargain with the car salesman regarding the car's quoted retail price. All new cars come with an MSRP (Manufacturer's Suggested Retail Price). If you are a cordial and persuasive customer, you may be able to get the auto dealer to give you a special retail price for your leased vehicle. If you can get a car's retail price to be quoted lower than its MSRP, less money per month will be taken out of your pocket.
>>Find the best deals for leasing a new car
In addition to searching for cars with high residual values and doing your best to get sub-MSRP retail prices, you also need to know a few things about the terms of the typical lease to keep your car lease as a deal. First, you must know that, as opposed to buying a vehicle, leasing a vehicle comes with a no-modification stipulation. This means that you cannot substantially modify a leased vehicle in any way. Swapping audio systems, tinting the windows, applying some bodywork and installing aftermarket parts are all big no-no's when it comes to auto leases.
To get a great deal on a car lease, always look for a car with a high residual value and a sub-MSRP retail price. Both of these things will lead to lower monthly payments. You also have to remember to take care of your leased vehicle, as excess charges always threaten to diminish any deal you may attain.
These steps should help you research car lease deals and determine your best options.
Familiarize yourself with leasing terminology:
Knowing what you are getting into if you are serious about leasing will help tremendously. Use the above as a guide when you set out on your research.
There are different types of car leasing deals that a consumer can look into to get the terms and prices that work for them. These terms differ to give the consumers different options to best suit their needs, budget and vehicle tastes. Here are a few of the different car leasing term types available to you as a consumer.
A closed ended lease is the most popular of all the different types of car leasing deals. This type of term allows you be able to walk away from the vehicle after the term of the lease is over with no further financial obligation. You will not be held liable for any difference between the lease agreement and the outstanding value of the vehicle. You can simply turn in the vehicle to the dealer and walk away free and clear of the car.
The only drawback to a closed ended lease is that while you are not responsible for any deficit between the lease agreement and any depreciation in value, you will still be held liable for other extras. If the car is not regularly services, or has excessive wear and tear, there will be fees associated with this. Also, with the initial lease agreement there will be a mileage allotment. If you have gone over this number you will be paying fees up to .25 cents for each mile over. This can be a substantial fee if you are not careful.
An open ended lease is the opposite of the closed ended lease. Here the lessee is responsible for the difference between the value estimated at the signing of the contract and the actual depreciated value of the vehicle. This is commonly referred to as an "end of lease" payment and protects the dealer against any loss they might have to accrue because of the lease. An open ended lease can also be a benefit if the market value is more than the estimated value. It is a risk to enter into this type of term, but if this does happen then you could end up with a refund. Another benefit to this type of agreement is that there are no mileage restrictions on the car. If you are involved in a business where you are driving a lot, or take several trips to visit family, you might want to consider this type of lease term.
This is something that will make sense if you can afford a large payment upfront. This is an agreement where you pay a large lump sum at the beginning of the lease agreement to avoid any interest charges.
In the event that someone returns a leased car before their contract is up, you may be able to drive off the lot with a reliable car in a short term lease. This type of lease is usually for a term of about 12 months and is for the same terms as the original lease contract. If you cannot afford a new car, or only need a vehicle for a short period of time, then a short term lease agreement is a great option.
One of the benefits of leasing is that very often it results in a person being able to drive off the lot in a new car they might not otherwise be able to afford if they purchased the same car. For people who regularly want or need a new car, the benefit of being able to get into that car often outweighs any potential disadvantages to leasing.
Many leases are for a few years and at the end of the lease, you need to either turn in the car and find another car to either purchase or lease or, alternatively, keep the car but pay off the balloon payment due at the end.
For people who use their cars for business, they may find it possible to expense a monthly lease cost for their taxes or write it off as a business expense. This can be an especially attractive prospect for individuals who really need a current car for their job, like real estate agents.
When a car lease is advertised, the emphasis is on the potential monthly payment amount. However, once a customer is in the showroom, what usually becomes obvious is that the car that is advertised is not the car that the lease will ultimately be written on. If this is the case, then it is important to understand the deals of the lease, including the limit on yearly or total miles, the total price of the car and the balloon payment that will be due at the end of the lease. For individuals who regularly need a new car for work purposes, leasing is one way of ensuring that they will always have a new car at their disposal.
When looking at cars for lease, you should realize that not all cars are created equal. Some cars are better suited to lease than buy. This is due mostly because of the rate of depreciation. It is determined that a car will lose 50% of its value over three years. This means that if you lease a high end car, you will only have to pay on half of the value rather than the full value. Here are a few of the best types of vehicles to lease for the best mileage.
>>Find the best deals for leasing a new car
Several auto manufacturers that have been highly competitive in the car lease arena for the past few years:
Finding the right new car lease deals can be easy or hard based on your credit score and credit history. If you have always paid your bills and taken good care of your finances, you will likely find yourself in a position to qualify for cheap car leasing with low interest rates. If your credit score is tarnished you may still qualify for used car leasing deals, but will pay a higher interest rate than those with a clean credit history.
With this credit score, you probably will not be able to find a legitimate car loan. A credit score in this range usually will suggest to lenders that the only items currently on your credit report are unpaid utility and medical bills, liens and judgments, and collections activities.
500 to 549: Bad Credit Score
If your credit score falls into this range, you can still get a car loan if you have a considerable down payment and a long, solid job history.
If your credit score falls into this category, and is 560 or less, then many banks will not submit your application for a loan. If it is over 560, you might be able to get an auto loan, but you will have to have a down payment, be willing to pay a higher interest rate and have a good job where you have worked for a significant amount of time. You will have to prove that your debt to income ratio is no more than 45 percent.
If your credit score falls into this range, although it is considered a below average score, you can still be approved for many different loans and credit cards as long as you have some open lines of credit that are reported in good standing. If your credit score falls into this range, you should go ahead and apply for the car loan that you want.
If your credit score falls into this range, you are considered to have average credit and should be able to get some good interest rates on loans and credit cards. However, you might not get the lowest rates.
If your credit score is in this range, you are in the preferred credit score range. You should be able to open a credit card with very low rates, and you will be likely to obtain pre-approval for a home loan. You should also get a very low interest rate on any car loans. Anything over 720 will typically receive the best deals.
If your debt to income ratio is not too high, a credit score of 750+ will allow you to enjoy the lowest possible interest rates on credit cards and car financing. You will also enjoy the lowest rates on a home loan. With a credit score this good, you can purchase two cars on credit if you want to.
There are many car lease deals on the market today—you see them almost every time you watch television for any period of time. However, before running out to sign a car lease, it is worth a close examination of the fine print to determine whether a lease is a deal or not.
In many cases, the advertised lease is what prompts consumers who are interested in leasing or purchasing a new car to go to the showroom. However, usually the advertised lease deal is not the car that most customers actually want to own. In many cases, the advertised deal is a stripped down lower-valued car. Additionally, the advertised lease usually also includes only the minimum number of miles-usually 10,000 miles per year. For a 3-year lease agreement, this adds up to only 30,000 miles, which would be extremely difficult limitation for most individuals.
For most people, adding the features that would make the car into a car they would really like and would meet their needs results in adding at least a few hundred dollars to the monthly lease payment, turning what seems like a really good advertised deal into an unattractive and burdensome prospect.
Another aspect to consider is a required deposit. In a lease contract, the monthly payment is actually a rental payment, since in actuality leasing is simply renting a car for the length of time of the lease contract. A deposit is an up-front rental payment that cannot be recouped if something happens to the car.
Some of the most important things to know about car leases are the limits that usually accompany them. There are three types of limits you need to be aware of: modification limits, usage limits and mileage limits. First, you've got to stay away from modifying a leased vehicle. Doing things such as painting it, installing some new audio equipment, doing some considerable engine work, etc. can cost you a lot of money when you return the vehicle at the end of the lease. You always want to make sure that you give the vehicle back to the dealer in the same condition that it was in as when you got it.
Next, you must drive the car with care and responsibility. Slamming on the accelerator pedal at every green light, jamming on the brakes at stop signs and taking extremely sharp turns will put some unneeded wear on your car. Avoid race car-like driving, unless you want to pay for excess wear and tear charges at the end of your term.
Finally, you must always be aware of the mileage you put on a leased car. Generally, you'll have to stay under 15,000 miles per year when driving a leased vehicle. Additional miles will cost you 20 to 50 cents each, and these excess costs can do a number on the lease deal you worked so hard to get.
Getting specials and deals on auto leases are not very difficult things to do, provided that you educate yourself a little bit and are unafraid of some bargaining. However, if you are not responsible with your leased vehicle, your deal will vanish before your eyes. Always remember to look for car's with high residuals, do some good bargaining, and be aware of a lease's limits.
In addition to your credit score, the availability of cheap car leasing deals depends on the model of the car and its age. When you sign a car lease, you agree to make monthly payments, have the right insurance, pay vehicle licensing, fees, and take care of the car for a precise number of months. This is usually around twenty-four, thirty-six, or forty-eight month leases. You are expected to honor and keep the lease agreement for the whole leasing term and will have to pay extra fees if the lease is broken by you. Car leases are not different from other types of leasing in the fact they cannot be broken easily or by a vehicle exchange. Though, you can expect to pay anywhere between a few hundred to over a thousand dollars depending on the lease and car.
When leasing an automobile, you arbitrate the cashing price with the dealer. It is not matching the sticker price, and it is not true that the sticker price can be lowered. The sole time you would not need to arbitrate the price is when the dealer is presenting a distinctive advertising bargain. The cost and elements of the lease are set prior in order to entice your business with them.
You can get the best car lease deals from Edmunds, and ask an invoice dealer as to what the going rate is. From Edmunds you can get previously discounted price quotes. A regional and local dealer who has the car can tell you more info about the car and the price range they are leasing it for.
This will be the price your lease will be grounded on and built around. You can also use sites like CarsDirect for more info and price quotes. You can also visit showrooms to ask for more info on different models and their car lease price.
Once you have an agreed price on the lease, you will go to the dealer, pay down on it and sign the lease. Then you will be allowed to drive the car off the lot and use it regularly. The price that was agreed upon will be your monthly rate you will pay.
When you begin to make monthly payments, you will get a bill and have to send in the check or credit card info to them with the slip they provide you with for that purpose. Once they get it, they will mark off so much as been paid. As time goes on, the less you will owe on the lease.
You will only contact the dealer or leasing company again if your car runs into issues. Each company will have their own protocols when it comes to this, so you have to contact the leasing agency for more info on how this will go. Pretty much after you sign the agreement, you will be done dealing with them and expect to make monthly payments.
However, once the lease is up, you will need to either release it or buy a car. That will be up to you, and you may be able to get a price on a previously owned or leased car.
Finding a good deal on a lease is only the beginning of managing your leasing costs. Here are some tips to help you prevent paying extra when the lease is up.
