Leasing a car is a cost-effective way to drive an expensive vehicle that you may not afford if you were to buy. Since you’re not paying back an auto loan, the monthly payments are generally lower. Many people and businesses now lease vehicles instead of buying. Statistics show that 27% of cars in the U.S. are leased.
If you’re leasing for the first time, do not rush to sign any agreement before you understand how leasing works. You may end up paying high fees and other unnecessary costs. This post discusses the top four car leasing tips first-time leasees can use to ensure they don’t get a raw deal.
Will you use the car for business or personal errands? What type of engine do you want in a car? Are you eco-conscious, and do you have a long commute? In that case, consider getting an electric vehicle or another fuel-efficient car. Once you figure out all these, you can begin your search.
Find Out the Monthly Payments
Before you start shopping, know how much you can afford to pay monthly. Look at your monthly expenses and see how much money you can spend on a car lease without straining. There are lease calculators you can use to determine your monthly payments.
Most leases run for two to three years, so you must be ready to commit to monthly payments for that long. Dealerships may also ask for your financial statements or monthly budget to gauge your ability to pay.
Shop for Manufacturer Lease Deals
Once you’ve determined how much you can afford to spend on a lease per month, find your ideal car. You can search online or make in-person visits to dealerships and test-drive different models. Automakers also have some great deals you can check out.
However, it’s worth mentioning that most of the deals are periodic, so you should stay updated on the latest lease deals. Don’t forget to check if there are any hidden charges-such as high-drive off fees or sales taxes-that may not feature in the monthly payments. When leasing a car the first time, doing your due diligence will determine if you get a raw deal or a great one.