Not every investment’s worth is measured by the monetary profit that you gain from it. Sometimes, there are investments that are measured by the use and the style that you get out of it.
This concept applies to clothes as well as car leasing. So, how exactly do you make sure that you get the most of your car lease? Well, these are rather simple tips that are often overlooked. Remember that every penny saved is another penny earned, and with these savings you could probably continue to lease cars in the future, because there’s just a certain appeal in riding in a flashy car every now and then.
1. Negotiate as Though You Were Planning to Buy
The wisdom behind this is for you to come up with a clear and definite agreement with your lessor. This is, after all, similar to financing where you breakdown payments into periods. So, only bring up leasing if you’ve already determined the total value of the car according to both you and the seller/lessor.
2. Bank on the Flexibility of Prices
Car leasing has a wide range of negotiable aspects to it. Themileage limit, down payment, and purchase-option price, along with the lease money factor (the number that lessors use to determine the interest of monthly payment) can be negotiated. With this in mind, you need to remember that car leases are similar to loans in the fact that you can give a higher down payment in order to reduce your monthly obligations.
3. Weigh Values Appropriately
If you’re trading in, you need to be able to determine the current market value of the car you’re trading and compare it to that of the car you intend to lease. This grants you some leverage when negotiating, especially if you’re able to show that you have a respectable mastery of the market.
This also means that you have to be clear and upfront with your seller on important matters such as the number of miles you intend to lease the car for. Buy these if you think you’re going to exceed your standard limit.
4. Learn When to Walk Away
Typically, you need to learn which red flags are simply inexcusable. For instance, you need to avoid entering into a lease that goes beyond the car’s factory warranty. Furthermore, you need to account for any end-of-lease procedures and payments so you don’t get surprised with a sudden fee that you’re required to pay if it was not stated during negotiations.
5. If You Plan to Buy, Evaluate
On the off chance that you intend to buy the car after the lease period, you need ensure first that the value of the car actually justifies the purchase. If the vehicle’s actual worth is less than the buyout price, try to negotiate for a lower buyout price. If that doesn’t work, then you need to start walking away.