Leasing cars is not the cheapest way to drive an automobile, but it can be the best option in certain cases. For example, if you intend to upgrade to a better model frequently, you would be better off leasing a vehicle as opposed to purchasing and selling them. There are several tips and tricks you can use to lower the cost of your car lease. Here are some of the most important:
Negotiate the Price of the Car as if You Were Going to Buy It
Leasing cars can be an expensive option for those who don’t know how to negotiate. You should approach the price negotiation as if you were going actually to buy it. It is common knowledge that you would have less leverage when leasing a car, and this might affect your bargaining power. For this reason, you should only let the dealer know that you intend to lease after you arrive at a suitable purchase price. This way, you will be able to get the lowest price they can afford to give. Also, you should get quotations from reputable dealerships such as Intelligent Car Leasing before making your final decision.
Negotiate the Mileage Limit, Down Payment, and Purchase-option Price
Most car salesmen are likely to focus on your monthly payments, and this can distract you from the down payment. It is important to make sure you pay as little money as possible upfront since this can lead to significant losses. In case the car crashes or gets stolen, you are likely to end up with a lot of money lost, and you will also not have a car.
When leasing a car, you will also have to agree on the mileage limit. If you are always on the road, you should go for a higher limit as this will be cheaper than paying extra for exceeded miles. If you have to prepay, you can have them refund you for any additional miles that you didn’t use. Also, find out if the dealership offers a purchase-option price. This can be advantageous if you choose to buy the car at the end of the lease.
Buy GAP Insurance
Guaranteed Auto Protection (GAP) insurance will cover your costs in case your car gets totaled before the end of your lease. The insurance will pay the difference between your loan and the value of the vehicle. It is important to note that GAP insurance will not cover your costs if you lose your job or get disabled. [Read more…]