10 tips to getting the best car lease deals

10 tips to getting the best car lease deals

Leasing a car seems lucrative because the monthly payout is lesser than when you finance your new car. Moreover, your down payment is less, and the leased vehicle is typically protected by a warranty from the manufacturer. These are just a few of the many benefits of car leasing. To make this alternative even more worthwhile, you need to consider some tips and tricks to secure the best car leasing deals that help you save some money.

Here are the top 10 tips to get the best car leasing deals

  • Try to negotiate on aspects such as down payment, mileage limit, and the post lease expiry purchase price. Leasing works similar to getting a loan. So, the higher your down payment, the lesser financing charges you would need to bear.
  • Try to negotiate on the money factor. This is the number that most lessors use to calculate the cost of leasing, i.e., an interest that you have to bear per month.
  • If guaranteed auto protection does not come with your lease, buy it. It is an insurance protection plan that will protect you if the car faces an accident or is stolen.
  • To ensure that the monthly payout is as little as possible, try to opt for cars that do not depreciate at a rate higher than average. You can refer to the Consumer Reports’ owner-cost Ratings in the model pages for detailed information on depreciation.
  • Dig into the details about the ongoing purchase price of the vehicle, just as you would if you were to finance the same car. After locking in on a price, you should start looking for leasing deals. After all, leasing too is a type of financing.
  • Do not opt for leases that extend for a period beyond the factory warranty of the car. We recommend so because this warranty is the most lucrative aspect of car leasing.
  • Ask upfront about any mandatory conditions or fees after the term of the lease. For instance, there are a few car leasing agents who will ask you to return the car only with tires that look fairly new. Ensure that all the policies are clear and fair to you right from the start.
  • If you think that you might need additional car miles, buy them beforehand. Have a clause in the deal that states that you can get the money back for the unused miles. Any overage of mileage will attract an increased rate.
  • Ensure that the trade-in has been reduced from the capitalized cost of the leased vehicle, if applicable.
  • For those planning to buy the vehicle post the expiry of the lease, do ensure that the car is worth its purchase price. If yours is a sub-vented lease, the possibility of this is almost zero. In case the worth of the car is lower than its buyout price, you can always try negotiating with the leasing agent. If he/she doesn’t nudge, we recommend walking away from the purchase.

To sum up, leasing is certainly not the ideal alternative for everyone. However, for customers who enjoy driving a new car every few years, this could be a great option. Do research and compare the different car leasing deals available in the market and negotiate as much as possible to save some money.

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