Car Leasing 401 - Where to Get Details of a Car Lease
Where to look for car leasing details to help determine if you're getting a good deal....or bad deal
How do you know if you’re getting a good deal on a car lease, where should you look and how to find the deals? An important part of a successful car leasing deal is being able to quickly spot a good or bad deal.
It is possible to have a combination of the above points on what makes a good lease deal, or 1 or 2 positive points and 1 or 2 negative points, and still walk away with a good lease deal. It’s the combination of all these points that make a good deal and how you, the consumer feel, once the deal is done.
Remember, even though acquiring or taking over a car lease appears to be a good deal due to the lower monthly payments per month, the consumer should emphasize with the dealer on the price, not the monthly payments(define: base monthly payments). A dealer will likely pitch this conversely and push the value in the lower monthly payments of the lease vehicle versus buying the car as the core value to make the consumer feel like their getting a good deal.
For a consumer who uses the dealer’s method of judging a car lease deal, could easily pay more than sticker price and still have what is believed as attractive monthly payments. This is the reason many people who are leasing today are overpaying, and the reason dealers love to lease. Dealers count on a high percentage of their leases being based on full MSRP (define: mrsp) — to uninformed customers.
So what’s a good deal and what is not, and where to find them?
Analyze the Lease Deal
Prepare to learn how to quickly determine whether a lease deal is worth considering, based on the cap cost, cap cost reductions, term, residuals, and money factor.
Where are the car lease deals?
Newspaper, flyers, radio, and TV ads are a good source for locating car lease deals, as are auto dealer's websites. Manufacturers sometimes offer subsidized, or subvented, lease deals on some of their models. This is accomplished by either boosting residuals or lowering interest rates (money factor), or both. Also check for other discounts or rebates to lower the lease price.
There are a few select sites online today that bring buyers and sellers of leased vehicles together. These sites are a great place to find consumers seeking to break or transfer their current lease. This is a great opportunity for people seeking to get into a short-term lease as originally person who leased the car typically pays all the upfront costs with the lease. Search Google, Yahoo or MSN on keywords as “bust out of a car lease”, “break a car lease”, “Lease transfer” and other related keyterms.
Banks, Credit Unions, and Auto Leasing Companies
These companies may have other good lease deals for consumers. Most people think you have to go with the finance company used by the dealer. Not true. In fact, you can often find much better deals at independent financial companies or lending institutions. Unfortunately, many large banks and lending institutions don't like dealing directly with leasing customers. They prefer to work through dealers or facilitators. Facilitators work with major financial companies and credit unions to find the best terms for you, including bank loan rates (define: bank loan rate).
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