More and more people are leasing instead of buying. It is more affordable and gives the renter the opportunity to drive premium vehicles that they may not be able to afford to buy. The monthly costs are also low.
According to statistics, the global car leasing market will be worth $131.10 billion by 2029. However, it is not easy to get the best car lease deal. It means understanding how leasing works and understanding car leasing jargon. Here are four tactics you can use to get the best deal when leasing a car.
1. Consider a Single Pay Lease
Flat-rate payments on large purchases such as cars can yield significant discounts at dealers. This also applies to car leases. Instead of making monthly payments for the entire lease term, offer to pay the entire amount at once if you have the money.
Landlords are more willing to cut some interest on a one pay lease, save you money. This is a great strategy, especially if you have cash but bad credit. Foreigners may also find this option ideal.
2. Shop around
Just like buying a car, different dealers have different prices. Compare prices from multiple dealers to make sure you get the lowest. You don’t even have to visit their showrooms in person. There are many car leasing websites and software that you can use to compare prices online.
Some dealers even offer lease specials for select cars. If you’re lucky, you might get your dream car. You can use advanced technology to take a virtual test drive if you choose to complete the entire process online.
3. Know Your Numbers
Leasing a car is more than just the monthly payments. It includes other important components such as:
- The payment
- Capitalized costs or limit costs (the total cost of the car)
- Permitted mileage limit, which may incur additional charges if you exceed it
- The surrender charge (the amount you will pay for the car if you decide to buy it at the end of the lease term)
It is critical to understand how these affect the car leasing process before deciding how much to spend. Use a car lease calculator to determine the amount you must pay for a lease. It calculates the monthly lease payments based on the car price.
4. Negotiate the lease:
You may be overlooking the negotiation part as you will be using the car for an extended period of time before returning it to the dealer. But negotiating the lease price can significantly narrow the gap between the resale value and the purchase price of the car. This can be important if you decide to buy the car at the end of the lease term.
Start negotiating the maximum cost as if you were buying the car. Before talking about leasing, make sure you agree on the price. However, it’s also important to know what you can’t negotiate, such as the resale value of the car, taxes, and mandatory fees set out in the lease. Because you want the best deal, arm yourself with all the important information before going to the dealer.