Car Leasing Tips

What to Know Before You Lease

Are you considering leasing a new car? There are numerous advantages to leasing a car as opposed to buying. First, the monthly payments on a leased vehicle are less than those on a new car and the down payment required is typically negligible. Also, leased cars are new and usually fall under the manufacturer’s warranty. However, there are a few things you should do before signing a contract in order to ensure that you get the best deal possible.

Prior to signing a contract to lease a vehicle, you should have researched and identified the car you want. This will prevent you from falling victim to any up selling tactics from a dealer. When choosing a car, consider the potential uses for the vehicle and if the prospective automobile fits within your budget. Contact your insurance company to get a quote on the vehicle. Insurance costs of a leased vehicle often go ignored when considering the true cost of leasing.

Make sure to review as many offers as possible to find the best deal available. Ideal leasing terms highlight low monthly payments and zero money due at signing. If possible, try to seek a contract that offers zero down payments. Unlike purchasing a car, where a down payment helps you own the vehicle outright faster, such a move leasing a car offers little benefit. Down payments are forfeited in the event of an accident and any extra money that would be put towards a down payment can actually be used to help make the monthly payments.

Before signing, acquire four to six leasing quotes from multiple dealerships. This will allow you to compare rates and options included with each automobile. Be sure to ask about any specials offered and don’t be afraid to use the offers provided as leverage against the other dealerships in order to get the best terms possible.

Finally, peruse the final agreement before you take delivery. Ensure that there are no additional fees or terms and conditions that would raise costs. Try for a lease that lasts 36 months. Also, many leases have a limit on the number of miles that can be driven in a year, so be sure to verify that number.

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