Here is part 4 of the series on determining if auto leasing is right for you. If you missed out on the last posts, check out part 1 of the series on auto leasing. The various categories are thoroughly discussed on part 2 and part 3, respectively.

Category 4: Do You Mind Returning the Car after the Leasing Term?

Most lease deals have an average term of 24 to 36 months. This means that you are eligible to enjoy the car for 2 to 3 years before the lease expires.

However, you need to bring the car back to the dealer as stated in your leasing contract. The good thing about this agreement is that you are not stuck with a used car after paying for it. You do not have to deal with trading the car or selling it in the near future. Leasing a car will release you from the worries of dealing with an unfair trade-in, or high depreciation costs.

Most lease deals will allow you to purchase the car outright, instead of returning the car. If you really like the car, then this is your chance to take full ownership, or as what others call it, have full equity on your investment.

It is important that you pay attention to your leasing contract. The lease company will indicate the proposed selling price or market value of the car after the leasing period, which is normally higher than what you expect.

The choice is yours. If you want to buy the car at lease end, you need to know the true market value of the car before re-negotiating the selling price. This will avoid the consequence of paying too much money on what is officially a used car.

Mileage Restrictions

Leasing also comes with mileage restrictions. Want to avoid the cost of paying for excess mileage charges on your car lease? Do your best to stay within the prescribed number of annual miles on the lease contract. The mileage restrictions will vary. The average is 10,000 to 15,000 miles.

The last post will be about the cost of the lease, and why leasing a car has lower monthly payments than a conventional car loan.

Leasing is fun, easy, and more affordable if you take the time to compare the lease offers in your area. You can do this by simply asking for an online lease quote. Compare lease prices and save.

Now, we will talk about other important categories to consider in order to determine if auto leasing is right for you.

Want to get a head start in finding updated lease prices with low monthly payments? Simply request an online lease quote today.

Still can’t make up your mind? Read on.

Category 3: Lease a New Car or Buy a Used Car?

All of us want to drive a brand new car. Nothing comes close to the sensation of driving a new car—not to mention the alluring scent of a car that is delivered fresh from the factory.

However, the cost of acquiring a new car nowadays is not similar to buying a new car in the 1960’s. The average price of a small compact car now hovers in the $12,000 to $20,000 range. Compare that to the cost of a car in 1965, which was only around $2,600.

Car buyers cannot be blamed for purchasing a used car instead. Can you expect college students to spend $14,000 on a brand new car? This is where auto leasing will prove handy.

In an ideal world, people from all walks of life should be driving a new car. The truth remains, however, that the current state of the global economy has prevented millions of people from living an ‘ideal life.’

What does a new car symbolize? Does it symbolize wealth? Does it mean that you are on your way up? Modern cars, despite being more expensive and complicated than your grandfather’s old clunker, are more fuel efficient, lightweight, and easier to drive. They tend to last longer, too.

New cars are also clean-burning as well. Technology gave us the power to drive better cars without totally poisoning the air.

We find nothing wrong with buying a used car. Although you will have to be extra careful before handing over your hard-earned cash to a used car salesman, because you have no idea if the car was treated properly by the previous owner.

For those who want to avoid the headaches associated with used car buying, we offer auto leasing as an acceptable and economical option.

Leasing a car is not complicated at all. You just need to choose the car that is right for your needs, and ask for multiple online lease quotes. Study and compare the prices in order to determine the right leasing deal that you can truly afford.

We will talk more about auto leasing in the next post.

Category 2: Your Credit Score

Car leasing companies will require you to have a credit score of at least 640 in order to lease a car. Those who have bad credit can rejoice in the fact that there are leasing companies that specialize on bad credit auto leases.

Your credit score is not just a set of numbers printed on a piece of paper. It measures your capability to pay debt, along with determining your spending habits.

If you have a low score (FICO of 500 to 600), you should take the time to analyze the situation and do something that will help improve your credit. Obtain your credit report from the top credit bureaus and inspect each entry on the report. If you find any errors, you should report this right away.

The Importance of Your Credit Score

Your credit score will help lenders and leasing companies determine the money factor in your car lease. The money factor (or the interest rate of the lease) is where lenders earn money. Since auto leasing is similar to financing a car, lenders need to charge a certain amount of interest to compensate for the risk involved in leasing.

Take comfort in the fact that your credit score alone will not give you a cheap car lease. Leasing is based on the MSRP and the residual value of the car. If you decide to lease a cheaper car with a high residual value, you can expect to pay less in your car lease.

Having a good credit score will also make it easier for you to get approved for the car lease. This is because car dealers consider you as ‘less risky’ compared to people with a low credit score.

We will discuss more about auto leasing in the next post. In the meantime, you can check out the latest car lease deals in the market with a simple online lease quote. It does not matter if you have good or bad credit. Our free online lease quote will help you find the best car lease in an easy and hassle free way!

Most horror stories about car leasing are, most likely, the result of not fully understanding the leasing terms and lease contract. There are car buyers who think that they can buy the car at the end of the lease term at a much lower price than expected. Think about this for a minute: if you really wanted to buy the car, then why bother with leasing in the first place?

This is the reason why we have come up with a series of posts that will help you to determine if leasing is right for you.

Is Leasing Right For Me?

Car leasing is applicable if you belong to the following categories:

1. If you have a stable and continuous source of income.

2. If you have a good or, at the very least, average credit score.

3. If you really prefer a new car over a used car. Of course, buying a new car remains an option but we will discuss that in another post.

4. If you don’t mind returning the car to the dealer at the end of the leasing term, and forking over monthly payments for the past 2 or 3 years in obligation of the lease contract.

5. If you want low monthly payments along with low or $0 down payments.

Category 1: Your Monthly Income

Yes, you will need to have a stable job or a reliable source of income in order to become eligible for auto leasing.

This is more important if you happen to be recovering from bankruptcy. Bad credit auto leases are available for those who have a mediocre credit score, but these types of auto leases will naturally command a higher down payment and slightly higher interest rates.

This also holds true if you have no credit, or have no history of credit at all! Remember that your proof of employment or proof of income will play a big factor in getting approved for your next car lease!

We will discuss the next batch of categories in the next post. If you want a cheaper way to drive a brand new car, then leasing is definitely worth the money. Check out the latest lease offers in your zip code by simply asking for a free lease quote. Instantly find hidden lease offers that are guaranteed to save you money!

This is due to the fact that a car with a high residual value will be cheaper to lease. Of course, we still have to factor in the interest rates and the lease term in computing the leasing rates. You will see from the illustration below that a car with a high residual value will give you lower monthly lease payments.

How the Residual Value Affects the Lease Price

Let us assume that car A has an MSRP or sticker price of $20,000. Let us also assume that the dealer demands a down payment of $2,000 for a 36-month lease term. The residual value of car A is 55% of the MSRP.

The MSRP of $20,000 should be multiplied to the residual percentage of 55% to arrive at the residual amount. Using the example above, the residual amount is $11,000 ($20,000 x .55).

Deducting the residual amount to the MSRP will give you a capitalized cost of $9,000 ($20,000 – $11,000.)

Deduct the down payment from the capitalized cost to determine the net cap cost of $7,000 ($9,000 – $2,000.)

Finally, divide the net cap cost over the lease term to arrive at a lease payment of $194/month ($7,000 / 36 months.)

Let us assume that car B has the same MSRP, lease term, and required down payment as car A. The only difference is that car B has a residual value of 45% of the MSRP.

Using this data, the residual amount is adjusted to $9,000 ($20,000 x .45).

The capitalized cost is now $11,000 ($20,000 – $9,000 residual amount.)

The net cap cost will become $9,000 ($11,000 – $2,000 down payment.)

The monthly lease payment for car B is $250/month ($9,000 / 36 month lease term.)

You can clearly see that the residual value makes a huge difference on the lease price.

The next time that you lease a car, try to determine which car has a higher residual value in order to get the lowest lease prices in your area.

Remember that smart leasing starts with negotiating the price of the car. Which brings in mind the first tip:

Tip #1: Avoid the Holiday Rush

No, we don’t mean that you should avoid shopping for a car lease today. In fact, the holiday season is the best time to shop for a new car! Year-end lease deals are being offered by every car maker from Acura to Volvo along with other rebate offers that will further lower the leasing price!

What we mean is that you should avoid rushing the decision especially in terms of the price. You may have your holiday savings for now but you know how it is nowadays: money just vaporizes into thin air!

When approaching the car dealer, we highly advise that you talk about the price of the car first before talking about the lease itself. The same can be said for those who want to buy or finance a new car.

Insist only on the invoice price and true dealer cost of the car that you want to lease. Also, be wary about the equipment levels of the car. Remember that more standard equipment means that you have to pay more for the car.

Furthermore, car dealers often advertise lease deals on the top models in their vehicle lineup. It is best to inquire about other lease offerings on base model cars in order to fully determine the right one for your budget.

Tip #2: Get All Your Requirements in Order

Caught in the fast-paced lifestyle of the holiday season? Hold on a minute and catch your breath! If you want to lease a car, you should take the time to organize all the necessary paperwork such as your credit report, proof of income and other credit statements.

Place all of the required paperwork in a separate folder and label it with a marker or pen. This will make it easier for you to present all the necessary requirements when choosing a car at the dealership.

Tip #3: Compare, Compare, Compare!

Again, we are talking about leasing prices. Not all car dealers will present the same lease amount and not all of them will be able to present rebates, incentives and other cash back offers.

Take advantage of our free leasing quote . This service is free and comes with no obligations whatsoever! Get one free quote to find the best lease deals and get multiple quotes to determine which one will help you save more money!

Compare prices and save. You may have heard this phrase before but this is the ultimate truth. Have fun in your holiday car shopping experience!

Thinking about leasing a car? If you are the type of car buyer that always wants the best new cars in the market then you have made the right choice.

Have you ever though about leasing a diesel car? Here are the top 3 reasons why you should lease a diesel car:

1. Diesel cars come with more rebates and other types of incentives.

Case in point the 2011 BMW 335d sedan. This car starts at $44,150 but comes with a lease price of $429/month for 36 months along with $3,500 ECO credit and $1,500 allowance. Do the math and you can drive home a brand new BMW diesel starting a price of no more than $39,150.

Car dealers give fantastic rebates and credits to those who are willing to take the diesel plunge. It is time that you do the same as well.

2. Diesel cars are more fuel-efficient.

Think that hybrid cars are the champ in terms of fuel economy? Think again. Consider the Volkswagen Jetta TDI. It has a 2.0-liter TDI engine that generates 140hp and 236 lb-ft of torque. This same car can achieve 30mpg in city driving and 42mpg on the highway.

The Toyota Prius is touted to achieve around 55 miles to the gallon in highway driving but in reality, the figure is closer to the 42 to 44mpg mark. Considering the fact that the Prius starts at $23,520 while the Volkswagen Jetta TDI starts at just $22,500, it is easy to see why modern diesels present a more valuable ownership proposition compared to conventional gasoline and hybrid counterparts.

3. Diesel cars are more durable.

Now this topic is a little more subjective. Durability means a lot of things and not just the engine alone. Durability and reliability will also depend on the driver and how he/she drives and maintains the car.

Diesel engines operate under a lot of internal stress. The process of burning the fuel inside the combustion chamber creates a lot of pressure on the metal parts of the engine.

Diesel engines are constructed using the finest and most resilient metal parts in order to aid durability. Diesels also produce outstanding power and torque at a lower engine revolution (RPM) compared to conventional gasoline engines.

In fact, most gasoline cars reach their peak power output at a very high RPM (similar to earlier Honda VTEC models) while most modern diesels can only rev to about 5,500 RPM max.

This alone will do wonders to promote the durability of the diesel engine. You get instant power and torque without pushing the engine to the limit.

Leasing a new car is perfect if you want to save money. Do yourself a favor and consider to lease a diesel car instead.

The 2012 GMC Sierra is not just a decent choice for a truck as it also provides a luxurious interior along with best in class towing capabilities. The 2012 GMC Sierra 1500 has a lease price of $350/month for 39 months, $0 due at signing. now you know what to consider if you want to lease a GMC truck.

The full-size GMC Yukon is still a favorite in the luxury-SUV department. Large families will have plenty to be happy about in the Yukon as it offers spacious accommodations for up to nine passengers along with a finely-tuned ride. you can lease the 2012 GMC Yukon for $479/month for 39 months with $0 due at signing under the GMC year-end promo.

If space is your priority in a large crossover vehicle then feast your eyes and your sense on the 2012 GMC Acadia. The Acadia can seat up to eight passengers while still having enough space to carry medium-sized cargo. The Acadia also delivers a smooth and pleasant ride while remaining more stylish and more nimble than a minivan. Lease the 2012 GMC Acadia for 39 months from as little as $374/month with $0 due at signing.

GMC is proud to offer the 2012 Terrain under the GMC year-end celebration. The Terrain is a stylish compact crossover that is comfortable and spacious at the same time. The Terrain is also fuel efficient as it can achieve a mileage reading of 22mpg city and 32mpg highway. Lease the Terrain for as low as $344/month for 39 months with no money due at lease signing.

GMC remains to be a solid contender in the American market. Find all the latest year-end lease offers for all types of GMC vehicles in your area and never pay too much for a GMC car lease ever again.

We will now talk about the lease term and how this alone will affect the price of the lease.

How the Lease Term Affects Car Leasing Prices

Similar to buying a car and entering a financing scheme, the term of the lease will play a big factor in determining how much you need to pay.

Look at it this way: choosing a longer lease term may seem to be more practical upon first glance as you will effectively get lower monthly payments but a closer look will reveal more about the importance of choosing the right lease term.

Remember that you are paying less in terms of monthly rates but you are also paying the said amount for a longer time. For example, if the lease price of the car is $230 for a lease term of 36 months then this will equal to $8,280. If the car is being offered for $199 for a 48-month lease term then you would have paid $9,552 after the lease term expires.

The savings will eventually add up. The good news is that car dealers will most likely offer attractive leasing deals over an average lease term. Stay on the safe side of things and avoid choosing a car lease that is more than two to three years, or around 24 to 36 months. Anything longer than that will expose you to the risk of paying more for your car.

Another thing to remember is that a longer lease term will also result in a higher interest rate. This is due to the fact that lenders and car dealers will have to deal with an extended risk period as well.

Intelligent car leasing starts here. Find all the latest car leasing deals before making a decision in order to find the best car lease for the money.

How the Residual Value Affects the Price of Your Car Lease

The residual value or estimated depreciable value is exactly what it sounds like: an estimate. No one will know for sure on how much a car will be worth in the future but you have to accept the fact that this value alone might spell the difference between a good and a bad car lease.

If the car that you are choosing to lease is well-known for having the build quality of a wooden shanty then be aware! The deal might sound too good to be true. Remember, a cheap car lease does not necessarily mean that you need to drive a cheap car. It is all about value for money!

Car brands that are desirable in terms of performance, quality and design will most likely have a pretty solid residual value. The same can be said for cars that have a history of providing unparalleled performance.

However, as the car gets more expensive then the same can be said for the lease price. It is all a matter of choosing the right car with the right trim model. Car dealers will most likely offer high-end trim models for their car leases–it is up to you to decide on how much of a car do you really need.

For example, did you know that leasing the Honda CR-V is $40 more expensive than the Honda Civic? It is also approximately $20 more compared to leasing the Honda Accord. Think the difference is insignificant? Multiply the said differences to the 36-month average lease term.

This means that leasing the CR-V based on monthly payments alone will cost you an average of $7,884. Leasing the Civic will cost you $6,444 on average while the Accord will cost you $7,164.

Think about that for a second. The reason why Honda cars were chosen as an example above is due to the fact that Honda cars are among those that have the highest residual values in the market. Do you really need the added weight of the CR-V if all you need is a compact Civic? Remember that since the CR-V is bigger and has a larger power plant, it will also be a tad more expensive to maintain. The savings will multiply tenfold!

If you want to lease a car without spending all your cash then choose a car with a pretty decent residual value and performance history.If you want to find the best leasing deals without breaking a sweat then start your car shopping here.

Smart leasing will comprise a lot of factors, namely:

1. The purchase price of the car.

2. The estimated depreciable value of the car, otherwise known as the residual value.

3. The amount of down payment that you are willing to make, more popularly known as the cap cost reduction.

4. The term or duration of the lease; and

5. The money factor involved or simply the interest rate.

If you managed to negotiate all the above mentioned factors in a new car lease then you can expect the cheapest and lowest monthly rates in the market. However, if you overlook even just one from the list (the residual value of the car, for example) then this will critically affect the price of the lease.

How the Purchase Price Affects Leasing Rates

Smart leasing will all begin on the type of car that you choose. It is indeed possible to lease the car of your dreams but you have to be realistic in terms of your expectations. If you choose a car that is more expensive or considerably more premium compared to an equivalent model then you would not expect to get the lowest monthly rates now, don’t you?

The purchase price is also called the capitalized cost. To make things more simple and clear, the Cadillac Escalade (and all of its awesome V8 power and refinement) will be more costly to buy than a Honda Accord or Toyota Camry. This naturally means that the Cadillac Escalade will have a higher lease price compared to the humble Accord or Camry. However, this does not mean that you cannot lease an Escalade while saving money as there is more to new car leasing than the capitalized cost itself.

More to come on how to lease like a pro. In the meantime, check out the latest lease prices on all types of cars and SUV’s in order to get an idea on what you can actually afford.

Lease prices will vary according to your location. Leasing prices will also depend on the car brand or marquee. Remember that a particular brand or model of car with a high resale value will be the cheapest to lease. Vehicles that are also highly reliable, dependable and cheap to run will be less costly to lease.

Everyone is searching for the best deals in town. If you want to save more money on a car lease then you should try leasing an economical and practical car. In terms of practicality, a car that is more than enough to meet your needs can be considered practical regardless of the size or bodily configuration. Try choosing a smaller car or subcompact if all you need is a vehicle that can get you from point A to point B. It is utterly wasteful to even consider a hulking SUV if you are always within the realms of the urban jungle.

Car dealers are the masters of the trade: they know all the tricks in the book in order to earn more profit from a car lease. Besides the obvious fact that you will need to have an average or good credit score, cheap car leasing will start in the selection process.

Choose a cheaper car and you will most likely end up with the cheapest car lease in town! Find all the latest leasing prices of the car of your choice and you will quickly understand why leasing is still the preferred choice for those who are in the market for a brand new car.

Without beating around the bush, here is part three of the series on how to lease a car and further save cash (and keep your sanity in place, too.)

It is essential that you understand car pricing before thinking about entering a leasing deal. Leasing a car is actually based on the depreciation of the car at the end of the lease term. In other words, leasing payments are a reflection of the estimated residual value of the car. However, lease prices will also depend on the type of car that you want to lease.

Cars that are larger, more luxurious and more prestigious will be more expensive to lease. This is a common fact. The secret in finding the best and most affordable lease deals is choosing the car with a high residual value.

You need not hone your talents in fortune-telling or even consult a spiritual medium in order to determine the future residual value of the car. Check out car reviews and professional advice relating to the past generation model of the car that you wish to buy. If the car is an all-new model then it is better to wait. If the previous model garnered impressive reviews in terms of reliability and desirability then the new model will most likely tread the same path.

Research is still the best way to find the lowest-priced leasing deals in your area. Know more about the latest car leasing prices in your area by the simple act of asking for a free lease quote. More leasing secrets coming soon!

Are you currently having trouble choosing the best car to lease? Keep in mind that choosing a car to lease is pretty similar to choosing what particular car to buy. Avoid the temptation of choosing a more expensive car! You have to understand that since leasing is considerably cheaper than buying in terms of the monthly payments, it is not a go signal to just splurge on the latest sports car, sports sedan or luxury SUV.

Choose a car that is right for your needs. Consider your driving needs and driving habits as your number one priority! Use your head and not your heart when choosing the best car to lease. You will thank yourself in the end for choosing an economical and easy to drive compact car over that expensive and cumbersome luxury SUV. Keep in mind that you will have monthly obligations to fulfill when entering a car lease and the difference between a few hundred dollars in monthly lease payments can be used for other monthly expenses as well. A penny saved is still a penny earned!

Never settle for one particular dealer when looking for the best leasing deals in the market. It is still best to ask for a free online quote in order to find the car dealer that offers the lowest and most affordable car lease. Start your hassle-free leasing experience here and find out how you can lease the car of your dreams without spending all of your hard-earned cash!

1. Car dealers are most often content with making at least $400 for every sale. This holds true for people who know how to negotiate the price of the car. Leasing is all about negotiating the price as some dealers will insist on using the MSRP as the basis for calculating lease payments.

2. Car dealers will make a profit on each and every aspect of the sale, including insurance, financing, optional accessories etc.

Here are some of the dealer scams that you need to be aware of:

1. Extremely low mileage limits – if a car lease will restrict your yearly mileage to only 10,000 miles then walk away and find yourself a new lease deal. You need to understand that mileage penalties will cost you a lot of money at the end of the lease.

2. Imposing a lower-than-usual residual value – this may sound confusing to some but keep in mind that a car with a higher residual value will be cheaper to lease. If car dealers tend to charge a lower estimated residual value then you will inevitably end up paying more for the car. This also holds true if you are planning to buy the car at the end of the lease term as car dealers will often impose a higher price tag for the depreciated car.

Avoid dealer scams by simply asking for a free new car lease quote. This will guarantee that you only get the best lease deals without any form of dealer scam.

1. A no money down lease is not exactly cheaper and lighter on the pocket. At first glance, it may seem like an alluring proposition in terms of car ownership. Imagine paying no money down at the start of the lease and still end up paying less than $200 or $300 a month for a new car. In truth, paying even just a small down payment will further lessen your monthly payments.

2. If the dealer offers you a no money down car lease then you should first consider the normal lease offer for the car. Car dealers will end up making more money on a no money down lease as they will recuperate their profits over the life of the lease term.

3. Understand the fact that a lease deal with no money down may come with a higher than normal interest rate. Of course, car dealers and lenders incur more risks if you decide not to make a down payment. A no money down lease deal will also mean that you are paying more for the car as there is no capitalized cost reduction to help reduce the amount of monthly payments.

Learn the best car lease deals in the market and find out how a moderate down payment may help further reduce the costs associated with car leasing.

Of course, you can always consider buying a used car but there are some that still prefer the optimum performance of a brand new model. This also has something to do with long term costs as old cars are more burdensome and expensive to maintain.

When thinking about leasing a car, here are a few tips on how to easily distinguish a good lease deal from a bad one. Keep a keen eye on the factors mentioned below and you are assured of getting the best lease in town.