3 Things to Know When Leasing a Vehicle
Leasing a new vehicle comes with many benefits. Whether you want access to the latest tech, fewer maintenance and repair costs, or to avoid the hassle of trading in your vehicle, there are many reasons that a lease might work for you. Here a few tips on what to remember when negotiating a car lease.
Things to Know: When shopping for a Chevy SUV
Leasing and buying are completely different
Getting the best deal on a lease negotiation starts with educating yourself on the process and specifically, the verbiage. If you have never leased a vehicle before, it is important to understand that it isn’t the same as buying a car.
First, familiarize yourself with leasing terminologies, advises Lance Cothern, CPA, on CreditKarma.com. These terms include lessor/lessee, gross capitalized cost, disposition fee, closed-end lease, rent charge, and residual value. It’s important to understand these terms before your step into the finance office.
The cost of a lease extends beyond monthly payments
There are many numbers to calculate in a lease deal. It is not just figuring out your monthly payment, according to The Penny Hoarder contributor Kelly Gurnett. You will need to factor in the down payment, the cap cost or total cost of the car, mileage limit (you will be charged extra if you go over it), and the purchase option or buyout price. It is important to know the complete cost of your lease so you do not obliterate your budget because you didn’t do the math before you signed.
Lease deals can help you save money
With a little research, you can find ways to save money on your lease. Automakers and dealerships often offer lease deals or advertised specials.
“The lower you negotiate the price, the less depreciation you may have to pay for over the life of the lease if all other terms remain the same. That may mean a lower monthly lease payment, too,” according to Cothern.
Which is Better for You: Leasing or financing?
With research and a clear understanding of your budget, you will be able to negotiate a lease that serves your driving and financial needs.
DeAnn Owens is a Dayton transplant by way of the Windy City, yet considers herself to be a California girl at heart even though she’s only visited there once. To get through the dreaded allergy season unique to the Miami Valley, she reads, writes, complains about the weather, and enjoys spending time with her husband, two sons, and their newest addition, a Boston terrier puppy that is now in charge of all their lives. In the future, she hopes to write a novel and travel through time. See more articles by DeAnn.