When most folks go out to buy a car, they usually consider a new or used vehicle; they don’t even consider a third option: leasing. How do leases work? A lease is like a long-term rental, generally ranging from one to four years. You’ll pay a monthly fee and also maybe some money down at the time you sign your contract. At the end of your lease, you’ll have the option of purchasing the vehicle. If you put more money down at the time of signing, you won’t have to pay as much to buy your car for keeps when your contract expires. Depending on your lifestyle and finances, leasing just might be the best option for getting the car of your dreams at a price you can manage.
Is leasing right for you?
You’ve looked at used vehicles, but right now you feel like buying a used car would be a gamble. Used cars and trucks can generate costs over time due to repairs and maintenance. You’d much rather drive a vehicle that is likely to run smoothly for the next few years. With a new car, most of your cost is up front since you generally can count on needing fewer repairs for the first few years of ownership, though there will still be maintenance costs, of course.
While you want a new vehicle, you don’t want to pay as much as you would for full ownership. You’re also not entirely certain that the kind of vehicle that complements your current lifestyle will be suitable in a few years. For example, maybe right now you’re living alone, but you see yourself married with kids within the next five years and you don’t want to go through the hassle of selling your car and buying another one. Leasing allows you to drive a new car without making a forever commitment.
Choose the right car
Do your homework so that you can walk into a dealership full prepared. What kind of car do you want? Take into consideration size, safety and fuel efficiency before you start looking at price. Once you know which type of car is best for your situation, you can start researching various models. Look at comparable models from a variety of makers and always look at lease deals since they vary greatly from traditional purchase prices. When you find a model that appeals to you, call or visit a few dealers that sell the model, since different sellers offer different rates.
Keep in mind that when it comes to leasing, the cheapest model may not be the least expensive lease agreement. With leasing, dealers gain from leasing very popular models since they have high resale values and a greater chance of being resold. For example, it’s cheaper to lease a Corolla than a Yaris from Toyota, even though the Corolla is more expensive. Since dealers have an easier time reselling used Corollas, they’re able to offer cheaper leases on them than the Yaris.
Strike a deal
Be prepared to haggle with pushy sales agents, particularly if you’re young and female. Bring all the information you acquired during your research and a friend, partner or relative for support. If you’re young, dress maturely so you’ll be taken more seriously. When you arrive at the dealership, don’t appear too eager and stress that you want concrete price quotes immediately. Figure out your options for money down and monthly payments. More money down means smaller monthly payments, but if you don’t have that money on hand right now, you might want to haggle for less money down. If the salesperson is putting off giving you a quote or seems to be trying to take advantage of you, threaten to walk out. Disrespectful salespeople aren’t worth your time.
Leasing is a little complicated, but when you figure out the basics, it doesn’t have to be a nightmare. Do your homework, and you’ll be able to get a good deal and keep all of your hair follicles intact.
Source: AutoInsurance
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