Everybody likes to save money and to feel like they are receiving a good value for what they paid for. Just like when shopping for a good deal on purchasing a car, you can search for a good deal on leasing a car. You can also try to negotiate an even better deal, but more about that later in our next installment.
Once you learn how to zero-in on the information that indicates a great deal, then you will be able to identify a good lease quickly.
Indicators of a Good Lease Deal
- Cars with a high residual value will make for better deals. Vehicle leasing specialists concur that the most important aspect in a lease is the car’s residual value, which is the estimation of what the vehicle will be valued at when the lease is over. As we have discussed in previous installments, the higher the residual value, the lower your payments will be each month. When you are shopping for a lease, it is best to search for vehicles that hold their value.
- A competitive money factor will save you money. The money factor, lease factor, or interest rate of the lease affects your monthly payment. You can negotiate down your money factor by contacting competing dealers to shop for the best interest rates available.
- Find leases with reduced or eliminated fees, such as the acquisition fee, the disposition fee, or the security deposit. Each leasing company has different fees, and it helps to find out the ones with the lowest fees. You can use this for leverage during negotiations as well.
- Leasing companies with high customer retention rates often provide the best terms and deals. You can find this information from leasecompare.com.
Shopping Around is Worth Your Time
It is worth your time and effort to shop around for the best lease deal. If you can find a lease on a vehicle with a high residual value, a low money factor, and reduced fees, all through a leasing company with high retention rates, you will be saving a lot of money in the long run. It may take a bit more time, but you will love patting yourself on the back for landing a bargain! You will also be able to pat yourself on the back if you negotiate the price down even further. We will tell you how to do this in our next installment, “Closing the Deal.”
February 27, 2013 by Jamie Rettig