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5 Tips for a Cheap Car Lease

October 14, 2017

Leasing is naturally the cheapest way to drive a car, in terms of monthly bills. When you lease, your bills might be hundreds lower than financing with a loan. However, you shouldn't just accept a lease deal right away. You should negotiate. You can also take other steps to ensure a cheap car lease, as well. Here are some examples.

1. Be Reasonable

Try your best to avoid leasing a vehicle you really don't need. Often, even the lowest-priced luxury models are full of stuff you can do without. You might want to choose a Toyota instead of a Lexus if you really want to save money. We don't mean the most expensive Toyota, either. You can do this. Just choose the cheapest option that actually works, considering your lifestyle.

2. Choose a Car with a High Residual Value

The residual value of a car is the remaining value of it at a certain point after it's manufacture. Leases are usually about three years long. What you want to do is choose a car that won't lose much value in that time. That will result in a lower monthly lease rate because the rate is essentially the depreciation of the vehicle over the lease term divided by the months in the lease term. To get an idea of which brands are best, see this KBB page. To get an estimate on a specific vehicle, head over to CULA.

3. Get Your Credit Score in Shape

Yea, this one can be a thorn in our sides but it is important. We can't untangle our credit score from monthly lease rates, unfortunately. Improving your credit score might be as simple as making sure you pay your bills on time. Though, there are other things you should also do. Here are some tips. A good credit score is 700 or higher. If your score is higher than 749, you have an excellent score. If you happen to have a good or excellent credit score already, you probably don't need to worry about this tip.

4. Consider Your Capitalized Cost Reduction

Capitalized cost reduction is the sum of all the value you offer with the lease deal. Usually, it's the value of a trade-in plus a down payment. You also might be able to apply a rebate to the down payment. Make sure you've found for every contribution you can find. Take your trade-in to a detailer and make it look as new as possible.

The only catch here is that you shouldn't make a huge down payment. It could be lost if the vehicle is totalled. If you are sure you will never wreck a car, take the risk but don't say we didn't warn you. Your dealer might offer insurance to cover the value in case such a thing happens. Feel free to ask them about it.

5. Don't Forget About Quotes

You should get quotes from all of your nearby dealers before you sign any papers. The problem with going straight to the dealers is the time you could spend there, with salespeople begging you to sit down and talk. Save all that for last. The best way to go is to request free quotes online once you know which vehicle you want. It's easy and there is no obligation. You'll have a bunch of offers to compare before you sit down to negotiate your cheap car lease. Click here.

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