Automobile leasing is a popular option for some new car shoppers. Leasing offers lower payments. And consumers can get a new car every few years and always drive a vehicle under manufacturer's warranty; eliminating the chance of large out-of-pocket repairs. Following a few simple guidelines will help you find an auto lease that is right for you.
Check Residual Values
A vehicle's residual value means how much the car or truck will be worth when the lease ends. Since consumers pay only for depreciation when leasing, vehicles with excellent resale values generally will be more affordable to lease. Residual values are represented in percentages reflective of the original Manufacturer's Suggested Retail Price, or MSRP. A vehicle with a two-year residual of 69 percent and an MSRP of $19,995 would have a lease-end value of $13,796. Check automobile residual values by using resources such as Automotive Lease Guide or Edmunds.com
It Pays to Negotiate
Car dealers like to lease vehicles because that allows them to close the deal based solely on payments, rather than negotiating on price. Most shoppers do not realize that there also is a "sale price" involved in leasing a vehicle. This is called the cap cost. While the residual is based upon the vehicle's MSRP, your payment is based on the cap cost and the residual value. So, negotiate the cap cost in the same way you would negotiate the purchase price of a vehicle.
Pre-Pay for Extra Mileage
Not allowing for a high enough mileage allowance can be costly in a lease. Over-the-limit mileage fees often run up to 25 cents a mile. This amount usually must be paid at the time the vehicle is turned in. Giving yourself extra room for mileage upfront can save hundreds of dollars in the end. If you normally drive 12,000 miles a year, choose a lease that allows for 15,000 miles a year. You won't get the extra money back if you don't use the mileage, but it is much more cost effective than going over your mileage limit and paying the fee.
0 comments:
Post a Comment