Buying a vehicle can burn a big fat hole in one’s wallet. This is why leasing a vehicle rather than buying one makes sense. Leasing a car is basically like renting an apartment. One does not own the car but can use it for a stipulated period of time in exchange for a sum of money. This sum is based on the value of depreciation of the car, fees, interest, and taxes.
Leasing a car is no easy feat. The whole process of leasing can even leave veteran car buyers dumbfounded.
- You do not have the cash to buy a car
- Lifestyle demands a car that’s outside your purchasing budget
- You like to replace the car with a new one after a year
- You will not exceed the miles mentioned on the contract
Tips to find great car leasing deals
Following certain tips can help one get the right car on lease.
Choose the right car
Before we even get to the part of understanding the intricacies of car leasing, you need to ensure you know what kind of car you want. You can choose from a variety of four-wheelers based on your budget and need. Once you’ve chosen the type of car you want, narrow it down to the model and make and then take it out for a test drive.
Verify value and price
You need to know the residual value and the invoice value of the car. The residual value is the price of the car after the lease period and the invoice price is the price at which the dealer purchased the car. The lesser is the difference between the residual value and the selling price, the lesser will be the lease amount on the car.
Get quotes from different dealerships
One of the most important aspects of shopping, in general, is to cross-check deals at multiple places. This will help you see where you’re getting the best price, best rates, best anything. Also, verifying the costs might be confusing but you need to cross-check this with the invoice amount.
Check the lease payments
Check all the parameters of the lease contract. There are a lot of words that you may not understand, so get the price and ask for the breakdown. Study what each means and look for any underlying clause that could cost you. Do not sign off anything without double-checking the vehicle and the contract.
