Smart Leasing Begins Here! Tips on How to Lease like a Pro!
People are now looking forward to their next car lease especially when buying a new car is not an option. New car prices are as stable as balancing a big rock on a thin piece of wood and this alone has made leasing a more viable and economical option for the cash-strapped consumer.
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.