Good Versus Bad Automobile Lease Deals
Knowing what determines the nature of a lease deal is one of the most important steps in the car-leasing process, so you should make sure you can differentiate between a good one and a bad one before you even set foot on the dealer’s lot. A “good lease” is essentially one that allows for the lowest possible monthly payment without any risky fine print that could cost you big later.
Locating a dealership that will provide you with a good lease deal is simply a matter of knowing a thing or two about the residual value and interest rate on the car you’re considering, which will ultimately affect how much your monthly payments cost more than any other factor. If the car’s long-term or residual value is high, then your monthly payments will be lower than a car that depreciates in value quickly. For example, a BMW has a strong value retention in general because it’s a well-known luxury brand the appeal of which will easily outlast a more standard vehicle like a Ford Focus.
Leases Are Localized by Dealerships
To find a good lease deal, you should always call around to various dealers and comparison shop. Also shop around at local car lots, and don’t settle for unreasonably high interest rates, because this will also increase your monthly payment. Remember that lease deals are determined locally by individual dealerships, and the only way to find the best one is to do some legwork both in and around the city in which you live.
If a good lease is one that allows for the lowest possibly monthly payment for the consumer, then the best possible lease contract necessarily has low fees, plain and simple. Remember that as the customer, you may feel free to question and dispute any and all fees to see which ones you can negotiate. For example, if you have better-than-average credit, you may consider arguing against the dealership’s need to request a security deposit from you.
Finally, a good lease deal is going to be at least partially determined by how effectively the particular dealership works with its own customers. If your investigation into a dealership yields the result that the company writing the lease cannot hold onto its customer base and everyone leaves after only one year of the contract term, then you may want to look elsewhere. Such research regarding the dealership’s customer retention rate is relevant to you as a potential lessee.
August 30, 2012 by Jamie Rettig