Archive for September, 2011
Looking for the best lease deals in town? Remember that dealer scams are aplenty–some car dealers will do everything in their power just to earn a lump-size profit. Here are two things that you need to remember in terms of dealer profit:
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.
If you are looking to lease a car in the near future then you better understand the factors that affect the resale value of the car.
On that note, it is crucial to understand the residual value and how this will help you find a cheap and affordable car lease.
All cars will depreciate right from the very moment it was driven off the showroom floor. All cars would have depreciated by around 30% after the end of three years. Since most lease deals are offered on three-year terms counted monthly then leasing a car with a high residual value is cheaper in the long run.
The brand or marquee of the car will also dictate the residual value. Without mentioning any names, cars that have difficulty getting sales might not necessarily be more expensive to lease than those that are regarded for their quality and durability. Cars that are sluggish in terms of sales will most likely be offered at a fairly low lease price. Of course, cars that are well-known for providing exceptional reliability and performance will have a high residual value and will be less costly to lease as well.
Ask for a free lease quote in order to compare car lease prices without even breaking a sweat.
Are you sold on no money down car leases? Don’t be just yet. Here are the things that you need to know about no money down car leases and find out if this is indeed right for you:
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.
Now is indeed a good time to lease a car. If you are one of those who cannot afford to buy a new car then leasing should be on top of your priorities.
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.
- Always perform your search online. While car dealers can only do so much in terms of advertising the most current lease rates in your area, doing an online search regarding the lease prices on the type of car you want will make sure that only pat for the right amount as based on the estimated residual value.
- Only buy the car that you need. Leasing will give you the power to buy a more expensive model but this does not mean that you should do the same. Remember that a car that is more expensive to buy will also be more expensive to lease. Be realistic and reasonable when assessing your driving needs.
If you take the time to consider the above given pointers then you are sure to drive home the car of your dreams through a qualified car lease.