Car leasing deals and how to get a good deal on a car
**A contributed post as written for The Safe Driver.
If you’re currently working with a tight budget and you’re in need of a car, availing of a car lease may be a good arrangement for you. Given what you can afford, you may be able to get a relatively new vehiche for a specified lease period at an affordable rate. Eventually, you may be able to buy your leased vehicle for a reasonable amount. Here are some pointers you can follow in order to get a good car lease deal:
- Narrow down what type of car you want to have.
Just like purchasing a car, the first important step in leasing a car would be to define your requirements for a vehicle. Here are a few questions you may ask:
- Would the car be for one person or for ferrying a family?
- Are you the outdoor type who would benefit from a four-wheel-drive pickup, or someone who’d prefer a luxury-type sedan?
- What are your regular activities?
- What specific features do you want in a car?
Deciding on the answers to these questions will make it easier for you to look for potential dealers that cater to the type of vehicle you need. Some dealers may specialize in a certain type of vehicle, where you can get better deals for car types they’re well-known for. There are likewise car dealerships that offer all types of vehicles from sports cars to delivery vans.
- Choose a car that holds its value.
Once you decide on the type of vehicle you want, it’s time to research for brands and models that fit your ideal car description. The bigger brands offer almost all types of vehicles, from small efficient hatchbacks to big trucks and SUVs.
When leasing a car, keep in mind that a big part of the lease cost pays for the car’s depreciation. So, select a car that holds its value quite well into the lease period. You’ll get lower monthly fees for slow-depreciating units, giving you more value for your money. Cars that hold their value usually mean that they’re reliable vehicles, with affordable and easily accessible spare parts. This also means that you’ll be spending less for the cost of servicing a car. All these factors affect a car’s resale value, which should all be considered when you’re leasing.
- Estimate your annual mileage.
Car lease contracts declare the lease period and annual mileage. As part of the agreement, you’d have to define how many miles in a year you plan to use the vehicle. This would protect the dealer’s interest in case a vehicle is overused during a limited lease period.
On your end, estimate the maximum mileage you may incur in a year. Make sure to inform the lessor during negotiations, as you may be charged penalties if you exceed this annual mileage value. For some potential lessees, this may be the deciding factor as to whether it’s better to purchase or lease.
- Negotiate a purchase cost.
When you’re inquiring with dealerships, you don’t need to declare up-front that 
you’d like to lease a vehicle. In asking about their offers, let dealers give you the sale prices. Always get the vehicle’s purchase cost, as if you’re buying it. This is because the lease cost is always based on the agreed upon car cost, so it’s better to negotiate early on for the minimum purchase cost.
Be aware of the features and car variants you’re being offered. Some dealers may offer you cheaper options but with fewer safety features and add-ons, such as infotainment and styling options. You may be getting a much better deal with a car worth $1,000 more and inclusive of the whole electronics and safety package already, versus a basic model at just $1,000 cheaper.
- Get multiple quotations.
Go around your area and inquire about all reputable dealerships to get multiple offers on the same vehicles, with similar options and packages. As aforementioned, there may be dealers who specialize in a certain vehicle type, and these dealers may give you better deals or more options to choose from.
When comparing quotations, be sure to check the inclusion of GAP insurance in the offer. GAP, or Guaranteed Asset Protection insurance, covers the difference in cost between what your car insurance covers and the balance in the lease. Some dealers don’t include this automatically, which may make their offer seem cheaper than others.
- Check dealer reviews.
Just like checking out reviews of restaurants you eat at or resorts that you spend your vacations in, you should also check online reviews for potential dealerships that you’d like to lease from. There are big reputable dealerships that have 5-star reviews, and these reviews sometimes include references for the specific salesman who has helped clients a great deal. Moreover, searching for online reviews will help you avoid dubious dealers with shady practices.
- Take the vehicle out for a test drive.
When negotiating with your dealer, always request for a test drive of the vehicle. Sometimes, even the same vehicles in different variants may feel differently, and you may be dissuaded from finalizing a seemingly good deal by something that you observe during a test drive.
Remember that you’ll be leasing the vehicle for the next couple of years, so you should be able to drive and use the car comfortably every day. A test drive is likewise a good way to validate whether you can live without some extra features that the dealer would like to offer, such as power seats, auto climate control, and many other high-tech but optional features.
- Know all the relevant numbers.
Once you finish negotiating on a deal, get the finer details in the lease contract. These are some of the following:
- Down payment
- Finance charges
- Annual mileage limits
- Buyout cost
The buyout cost is the car’s cost at the end of the lease, which you may opt to pay in order for you to take full ownership of the vehicle. Also, keep in mind that putting down a bigger initial payment or down payment will lower your monthly payments and finance charges.
Conclusion
As you’re going around and visiting various car dealerships, be ready to walk out and rethink your strategies if you’re not satisfied with all their offers. If you look desperate and eager to close a deal right away, the salesman can easily convince you to accept an offer that you’re not fully satisfied with. Keep the salesmen on edge, so that they give you concessions and more discounts.