Car on Lease: Driving Away Satisfied

A car on lease can save you money and hassle over buying a car. However, to get the best value for your money and drive away satisfied, there are a few things that you should do and know.

Research the Proper Candidate

Many cars can be leased, but only some will be great values that will save you money. When you lease a vehicle, you pay for its use and depreciation over time. You'll want to look for a car that will have a high residual value at the end of the lease. The residual value is the estimated amount of money that a car will be worth at the end of the lease term. The less a car depreciates and the more its worth, the lower your monthly payments will be.

Don't Be Afraid to Bargain

It is possible to get a quoted retail price on a leased vehicle that is below its MSRP (Manufacturer's Suggested Retail Price). Talk to the salesperson and see if you can convince him or her to give you a sub-MSRP retail price. The lower the retail price on a leased car, the more money will end up in your pockets each month.

Look for Assumptions

An auto lease assumption is essentially a takeover of a lease. Generally, leases run from 3 to 5 years. Sometimes, lessees want to get rid of their leased vehicle before their lease term expires. If you search for leased vehicles offered by these people, you can get a good deal. You'll only have to make the remainder of the monthly payments, which can end up being a very short-term commitment. Just remember to take note of the amount of miles left under the mileage limit, and be ready to look for a new car in the near future.

Understand Your Limits

There are 3 major drawbacks to an auto lease: mileage, use and modification limits. You must understand these limits and be able to function within them if you are to be satisfied with a car lease. Usually, you'll be limited to driving 12,000 to 15,000 miles per year in a leased car, with additional miles costing 20 to 50 cents each. You'll also have to monitor your driving habits, remembering not to beat the car up and drive it like it is a race car. Doing so will have you paying excess wear and tear charges. Finally, you must be able to resist significantly modifying your vehicle. Installing a new audio system in it or repainting a leased car is not a good idea, as you're required to return the car to the dealer in the same general condition as it was received.

To drive away satisfied with a car on lease, you'll need to select a worthy vehicle, get a good quoted retail price or assume a decent lease and you must understand the limits of the lease. If you do these things, you'll be happy with your leased vehicle and the value you'll be getting for your money.