Unless you’ve leased a car before, been there and done that, you would need some serious advice to ensure you’re on the right path and not on the way to being ripped off your valuable money. Leasing is a very complex process, and understanding every minute detail is of utmost importance. While most auto dealers would do their best to convince you into availing a lease deal, it’s a good to weigh the pros and cons beforehand. You don’t want to fall into a trap; use these tips to help you decide if leasing is the right thing for you.
1. Understand the basic deal
Leasing is similar to renting a car, however, with consistent fixed monthly payments over a period of 2.5 to 3 years. The monthly fixed payment is derived after calculating the estimated value of your car, the expected depreciation over time, tax, fee, (and insurance if included) etc. While it may seem simple on the surface, it isn’t. The car value depreciates overtime, and it will be lesser a year later than it is today. A sign of a good deal is the length of the lease period; if it’s anywhere beyond 3.5 years, it’s best to consider another option.
2. Leasing from an independent leasing company
Leasing from a leasing company can give you some benefits as compared to leasing from a dealership. They usually give you a clear cut lease deal with mostly no hidden charges since they are not providing a service for any third party. While the interest rates may vary depending on the vehicle you choose; new, old, used, etc., you will still get a better deal. Also, if you have good credit score, your monthly payment amount is likely to be even lower.
3. Look for better deals
While car leasing offers from different dealerships with lower prices may entice you, it’s always good to be very careful and diligent when analyzing a deal; lease deals that may look enticing upfront are likely to have a catch somewhere. Therefore, make sure you keep looking for better deals and put your finger on the one that suits your requirements the best. It is recommended to use car lease calculators or softwares to compare different deals in order to make the best decision.
4. Understand where your money is going
A reputable leasing company will give you a break of costs; down payments, monthly payments, insurance, tax, fees, etc. This will help you understand where your money is going and you’re not being played upon. Most reputable livery car leasing companies will give you insured vehicles, so make sure you’ve checked your pros and cons before you sign up for a deal.
Understanding the deal well, with all the related costs calculated, you will be able to get the best car lease deal and stay away from being ripped off by a dealership.