For many people, car leasing is a smart move. Making small repayments every month is easier compared to financing a brand-new car which requires a substantial upfront deposit. If you prefer getting a new model every four years or you’re okay with returning your set of wheels at the end of your lease term, then leasing makes perfect sense. What’s more, these tips will help you save money on your car lease.
Although you’ve opted to lease a car, negotiate the vehicle price as though you’re buying it. Once you agree on a price that’s within your budget, then go ahead and bring up the subject of leasing.
The internet is rife with information. Go online and look for the best deal from a reputable company.
Check the Car Warranty
Ensure the car warranty covers the lease term. Steer clear from leases that go beyond the factory warranty of the vehicle. Without the warranty, you may be at a higher risk of coughing out more cash.
Bring the Money Factor Down
The money factor is the figure that a lot of lessors use to come up with the interest that’s added to your monthly payments. Therefore, do your level best to bring down that number to avoid higher monthly rates.
Take Advantage of the Tax Benefits
If the leased car is for your business or company, you can write off the lease cost as a tax deduction. Moreover, you’ll not pay taxes on the full price of the vehicle, even if it’s for personal use. That will save you a few hundred dollars.
Factor in The Mileage
Think about how much driving you’ll do. If you suspect that the mileage limits might go above and beyond your lease terms, then it’s better to buy extra miles right way. If you manage not to exceed your miles at the end of your lease, then you may be entitled to a refund. Mileage overages attract an increased rate.
Choose A Car with A Higher Value
Go online and carry out a bit of research to find out which car models last longer. For instance, lease a luxury Mercedes. Such a vehicle with a higher value will bring down the cost of the monthly payments.
Increase the Initial Down Payment
When you increase your upfront deposit, then, you’ll minimize the monthly payments. In case you opt to purchase the car once your lease expires, then the cost of acquiring the vehicle may decrease because of the higher down payment.
Understand All the Terms and Conditions
Read the fine print of your lease agreement carefully to avoid any misunderstandings and confusions. Ask your dealer if there are any fees you have to pay or conditions you have to follow once your lease term comes to an end. If there’s something you don’t understand, request the dealer to explain it to you.
Get GAP Insurance
If your lease doesn’t include Guaranteed Auto Protection (GAP) insurance, make sure you get it. In case your car is written off in an accident, or it gets stolen, you’ll be covered by the insurance.