You want to lease a car, but you don’t know much about leasing which means you wouldn’t even know what to inquire from a dealer or the factors that you need to consider. Don’t beat yourself up. There are many things involved in a lease agreement, but only a few of these are relevant to the price. If you have enough information to make meaningful inquiries, then you can be able to get a great deal. Below are the factors you need to consider before leasing a car.
Lots of makers from time to time lease cars at prices that are discounted. They do this to get more interest for the models that don’t sell quickly. You can save yourself a lot of money if you keep track of these specials.
The residual value of the car
The worth of the car after the lease has ended is what we refer to as residual value. Generally, the higher the residual value, the better the deal will be. Essentially, leasing a car is paying for the value that you will use over the course of whatever period you are leasing it for. I will give an example of you leasing a 30,000 dollar car for three years. If the worth of this car at the end of the three years is 18,000 dollars, the value of the car that you used is 12,000 dollars. To get the amount you will pay monthly, divide 12,000 dollars by the number of months in 3 years which is 36. This will give you approximately 333 dollars.
Your interest rates are a significant factor to consider when leasing a car. This is a negotiable factor in a lease agreement. The dealers, however, use credit scores to determine interest rates so make sure you get the interest rate that you deserve if you have a good credit score.
The number of miles included in the lease
The number of miles included in the lease annually is a factor that you need to be aware of before leasing a car. In many instances, you could find a fantastic lease deal, but then upon inquiry, you realize that the deal includes only an annual mileage of 10,000 miles. The set standards by the industry are at least 12000 miles annually. Make sure you are not in for a surprise in the long run because you will be charged an extra percentage for a number of miles that you exceed.