Car Leasing Tips That Will Help Get You The Best Deal
The right car leasing tips can help ensure that you get the best deal possible on your car lease. There are different schools of thought when it comes to leasing vs. buying a car. Some people like the idea of driving a new car every few years while others want to avoid repair costs. If you do decide that leasing a car is right for you, you want to be sure to do your research first.
Here are six car leasing tips to help you get the best deal possible
1. Know the terminology
There is a lot of jargon surrounding car buying/leasing. In order to make sure you arrive prepared, you want to familiarize yourself with these terms.
- Gross capitalized cost: This is pretty much the total cost of the car. It is the cost of the vehicle, plus any other services and fees.
- Residual value: This will be the future value of the car. The dealership determines the value based on how well it expects the car to retain its value over the course of the lease.
- Rent charge: This functions like interest and is a major cost of leasing a vehicle.
- Disposition fee: This is a fee that is charged when you give back the vehicle. It covers the cost of reconditioning the car so it can be sold again.
- Closed-end lease: This type of lease means you have to agree on the future value of your vehicle before signing your lease. So even if the value of your car is less than what it is worth when you return it, you won’t own any money.
2. Know Your Numbers
When it comes to car leasing tips, you really have to know all the costs. You want to sit down and dig into variables like how much you can spend as well as how much you can afford to spend on these additional things:
- The down payment
- How much will oil changes be? Some luxury cars require a certain oil type.
- The mileage limit you feel comfortable with. Remember you will be liable for excess-mileage fees if you go over it.
- What do the tires cost? Again, some nicer cars have more expensive tires. You don’t want to be hit with a large unexpected bill when it comes time to change them.
- How much will car insurance run you?
If you plan on trading in your car, make sure you know how much it is worth by going on Kelley Blue Book. You want to make sure you get a good deal and that the dealership doesn’t shortchange you.
3. Go to the dealership when you are feeling good
The day you decide to look for a car, make sure you are feeling good. This is a key car leasing tip. This means you are not sick, you have eaten, you are not feeling tired etc. You want to enter the dealership with a clear head and with energy so you can handle the stress of negotiations.
4. Use your phone
There are so many helpful apps that can give you help in real-time with negotiating your car lease.
- TrueCar – This will show you what other people have paid for a similar car at other dealerships.
- Cars.com app – This app will give you access to in-stock vehicles at local dealerships. The app will also let you do a side by side comparison. (Both in the iPhone App Store and on Google Play).
- The Kelley Blue Book app – This helpful app will show you rebates, incentives and all current sales for your car in your area (for iOS, Android phones).
When you have these apps at your disposal, the salesperson will know that you are prepared and knowledgeable.
5. Pay attention to the manufacture date
The manufacturer date is probably something you never thought to look at. Knowing when the vehicle came out of production will give you an idea of when it came off of the production line. Why is this date important? The longer the car stays in the dealership past that date, the more the dealership will have to pay in carrying costs. This means they a need to try and move this car off the lot asap. You now have a little bit of an upper hand.
6. Don’t be afraid to walk out
Don’t ever go to a car dealership with your mind set on leaving with a car. If you are not getting the deal you want and need, you have to be willing to walk out. The last thing you want to do is agree to a purchase that will wind up blowing your budget. There is a chance the salesperson will stop you in your tracks and try and offer you something more to get you to sign. If he/she doesn’t, well there are plenty of other dealerships that would want your business.