If you are planning on purchasing your first car, you may want to consider leasing in order to avoid some of the lending pitfalls that come with a larger purchase. Leasing a car, in many ways, can be much more advantageous towards your needs, especially if you are only planning on using the car for a certain task or for a certain period of time. Unfortunately, not many people understand how to lease to the best of their abilities, and may end up taking on an unsatisfactory deal. Consider some of the following tips that you can count on to improve your chances of a good lease.
To begin, look at the vehicle’s purchase price. Focus on negotiating its price as if you were planning on buying the car. Only after you have established a firm price should you even consider bringing up leasing to the salesperson. The ultimate value of the vehicle will determine the value of your lease, which, after all, is still a form of financing for the car itself, so be sure to treat it as appropriate.
After you begin discussing the leasing possibilities, it is vital for you to begin negotiating as much as possible. Many people do not take this step into consideration because they are not sure what can be negotiated. The truth is that anything and everything is up for debate. Things such as the mileage limit, the down payment, and even the purchase option price can all be negotiated. Remember that it is all like a loan, and the more you put down now, the less your future finance charges will be.
Negotiate the lease money factor as soon as possible. This is the number used by some lessors in order to determine the interest portion of your monthly payments. You will want to negotiate here because it will ultimately determine what you pay in the future, and how comfortable you may be with those payments. Negotiate as far down as you possibly can and do your research.
Make sure that you understand the limits and inclusions of the lease. One of the most important things that you should purchase is Guaranteed Auto Protection, which will be abbreviated as GAP. This insurance can help protect you in case your vehicle is stolen or totaled in a difficult accident. Unless it is included in the lease already, it will not be mentioned, so be sure to ask about it to get the best possible protection.
In order to keep your monthly payments as low as they can possibly be, always look for cars that do not depreciate faster than the average. Doing your research online is often the best way to look into this, and be sure to look into what factors can affect the depreciation of your vehicle. Adhere to those factors as carefully as possible and make sure that you are always driving safely. This can help you get the most out of your lease after you have already finalized the negotiations.