Most of the people prefer leasing to buy their car because by this they can get a new car in less money. Read how Leasing a Car works?
Leasing a car in simple language is to take a car on rent for a long period. Generally, the customer has to pay an upfront payment at the start and monthly payments afterward and can use a car for many years. At the end of the lease, the customer has to return the vehicle and have to decide if he wants to start a new lease or arrange his vehicle. Most of the people prefer leasing to buy their car because by this they can get a new car in less money. There are the following ten steps for leasing a car.
READ ALSO: Steps to Avoid Bankruptcy
Get familiar with Leasing
Car leasing is just like car rental for a longer period and definitely with some extra fees. This is the first step to decide which car to lease. If you want to lease a car you have to be familiar with the terminologies related to leasing a car. Then you should work on the right method o financing that suits you and also able to negotiate a good monthly payment. You have to go through different leasing offers then decide from them for you. You should also familiar with the pros and cons of leasing first you lease a car for yourself.
Design Your Lease Deal
After getting familiar with the leasing and terminologies related to leasing then at the second step, you will be able to design a lease for yourself. It is recommended that you should not lease for more than three years because your car remains safe by the company’s warranty offer. You can also extend your lease period from three to five years that will not only reduce your monthly bill but you can take that favorite vehicle for a longer time. To design your deal you should be familiar with lease contracts. It would be beneficial for you if you ask your insurance agent for a coverage quote as most of the time is required by the lease companies.
READ ALSO: How to Pay Off Debt?
Estimate Your Monthly Payment
This is a very wise decision to estimate a possible lease payment by yourself as you can find a good deal as you continue searching for deals. The sounds difficult but it is possible to calculate your lease payment and adjust it by viewing different parameters like mileage and down payment. You can also contact the finance manager at a local dealership to know about the three-year residual value of the car you want. Then you have to put this figure into the calculator with the mileage, down payment, and trade-in to find your estimated monthly payment. This is a very easy method.
Check for Manufacturer Lease Deals
Many carmakers offer highly discounted lease specials from time to time to make customers. Sometimes these advertised specials might have additional costs. It is your responsibility to check if the required monthly payment includes sales tax and fees and if it also demands high drive-off fees that are just like the down payment when you buy a car. You need to be very cautious when viewing such deals so you can choose the best one for you.
Look for Special Lease Offers
The other smart and easy way to get a great deal is to search for special lease offers. Visit the authentic site, go to its home page, then see the available cars there especially for your area. Most sites often ask for your e-mail address and phone number after providing that you can instantly see the vehicle’s monthly lease payment, drive-off fees, and several included miles. After selecting your desired car you can call the salesperson listed on the offer to confirm that the car is still available and not booked, so next print out the certificate that you have to take with you to the dealership to finalize the deal.
Find the Exact Car To Lease
If you can’t find a lease offer for the car you want, you can locate other cars to lease by going to the desired website’s home page and select the year, make and model. After that, you will be able to see several sample cars for sale at local dealers. There will be a link also that lists the number of cars available. If you like any one of these cars, contact the dealer to make sure that it is still available. There may be many offers available for the same car then you can choose the best one that suits you.
Shop the Internet Department
It is highly suggested that you should shop through the dealership’s Internet department because it offers many advantages over the traditional local car shopping strategy adopted. Visit the sites then select the best one and you can send requests for price quotes from the Internet managers at local dealerships. After some time you receive the car price quote, then you have to follow up with an e-mail or phone call to get a lease quote and you can compare the quotes you get to your calculated lease payments. That’s a very easy, convenient, and modern method.
Test-Drive the Salesperson
Once you call dealerships to locate your car, you should also test-drive the car salesperson to be safe by asking yourself if you feel comfortable dealing with this person. To confirm that he is the right person with whom you should talk. If he is capable enough to answer your quires or requests or not. And he should be competent to provide you even the minute details of the deal. So you will not regret it in the future. Selecting the right person is very necessary.
Negotiate Your Best Lease Payment
After getting price quotes and an idea of the level of customer satisfaction at the contract you signed. If you want to make your deal better then you can go with the lowest deal then ask another dealer if they are offering the different or at a lower price then you have to think once more time about your contract. You have to make sure you correctly tally quotes of the down payment, the length of the lease, and the annual mileage allowance. Once your deal is finalized you can ask the dealer to drop the car at your place.
Review and Sign the Paperwork
This one is the last step for availing of your desired lease offer. You can finalize the deal at home or the showroom, whether the place it is you have to keep in mind that the dealership will ask you to sign a contract and many documents.
While signing the contract finance manager and insurance manager can give you more deals or instructions that you can avail at that time you have to take the right decision while signing the lease contract. Smart people see a worksheet for the lease deal before the contract is signed so it may become only a formality to sign it. But you have to make sure the numbers in the contract match the worksheet and that no additional charges were added.
As leasing the car is not an easy thing you have to keep in mind several things like its terminologies, concepts, types of deals, and the ways by which deals can be done. And at the same time, you have to be very vigilant when dealing with the dealer as he can’t double-cross you. Using the internet in making this car shopping is the best suggestion as in a short time you can visit many sites that lease a car and you can also contact them online without visiting the place. It can save you time and money. Once you go for a deal it is very important to update your knowledge and don’t rely on others.
Please share “How Does Leasing a Car Work? – Understanding Concept” with friends and family.