Ten Tips for Saving on a Car Lease
Learn the fundamental steps when you want to save buying a new car:
1. Negotiate the price of the car as if you were going to buy it. Only
once you have a firm price should you bring up the fact that you want
to lease. Leasing, after all, it is a form of financing.
2. Mileage limits, down payment, and option-to-buy price can all be
negotiated. Just as with a loan, the more you put down, the smaller
your payments and finance charges will be.
3. Negotiate the lease money factor, which is the number used by
lessors to determine the interest portion of your monthly payment.
4. If it's included with the lease, consider Guaranteed Auto
Protection (GAP) insurance to protect yourself in case the vehicle is
stolen or totaled.
5. In order to keep monthly payments as low as possible, shop for cars
that don't depreciate as quickly.
6. Don't sign a lease that extends beyond the factory warranty. After
all, this protection is one of the biggest appeals of a lease!
7. Pay attention to end-of-lease procedures and fees, like returning
the car with new tires. Make sure the policies and fees are clear and
8. Buy additional miles up front if you anticipate running over the
standard allotment. Often, you can have the money you've paid for
additional, unused miles returned at the end of the lease.
9. If applicable, be sure your trade-in value is deducted from the
leased car's capitalized cost.
10. If you're considering buying after the lease ends, first make sure
the vehicle is worth at least the purchase price. That often won't be
the case if you had entered into a subvented lease, for which the
automaker artificially raised the residual value. If the vehicle is
worth less than the buyout price, try bargaining down the price. If
you can't, walk away.
Bonus tip: Visit CarLeasingSecrets.Com for free quotes from competing dealers in your area!