If you don’t want to buy a car, there is plenty of appeals to leasing a car. For example, if you lease a car you can pay monthly payments, which can be significantly less than buying a car outright. The down payment can be small. The vehicle is brand new and covered by a warranty and it can help you get on track for purchasing/leasing a new car in short time. Although there is plenty of perks and benefits, you can find yourself in some sticky situations. That’s why we have put together a few money saving tips to keep you on track.
- Be sure to avoid leases that extend beyond the car’s factory warranty. One the main perks of leasing a car is based solely on the protection this warranty gives you, without it, you can be at high risk of paying out more money!
- In order to keep your monthly payment as low as possible, make sure you steer away from cars that depreciate faster than others or faster than average.
- Ask to buy extra miles up front if you have a feeling you may run over the standard allotment. Most car leasing companies will give you the money back at the end of your lease if you haven’t used all your additional miles. Any mileage overage will come at an increased rate.
- You should always negotiate the car price as if you were going to buy it. Only once you have a solid price in place, you should bring up the topic of leasing.
- Make sure to keep note of any end-of-lease procedures and fees. This can be anything from returning the car with nearly new tires or the cost of certain damages. After you have discussed with the leasing company and you feel comfortable these policies are clear and fair, go ahead and sign your lease.
Finally, if you decided to buy the car once the lease ends, you should always make sure the vehicle is worth the overall purchase price. Although this would be the best outcome, it can be unlikely. Some companies offer subvented leases, which means the automaker can artificially rise the residual value. Taking this on board, you should always try to bargain down the price, if you feel the car is worth less than the buyout price.