Tuesday 2 July 2019

How To Find An Auto Lease That Fits Your Budget

An auto lease is an agreement where an individual is given an opportunity to rent a vehicle for an extended period of time. This agreed-upon period of time, in most cases, is between two to five years, after which the vehicle is returned to the initial owner or purchased for a lump sum that is determined at the time of the original agreement.

Photo by alex ringer from FreeImages
An auto lease can be compared in many ways to renting a house. The house doesn't belong to you, rather, it's rented for a specified period of time after which you're expected to vacate it or extend the lease agreement.

Bear in mind that there are penalties that apply if the auto lease terms such as exceeding the predetermined mileage coverage agreement are violated.

With that basic understanding of what an auto lease is, let's look at a few tips to use to find an auto lease that fits within your budget:

1.    Be On The Lookout For Leasing Specials
Leasing specials come into play when the lease formula is adjusted in such a way that enables you to pay lower monthly instalments or get a reduction in costs such as down payment and drive off fees. This way you can be able to lease newer and more luxurious vehicles which you initially wouldn't be able to afford.

Be on the lookout for lease specials. You can get these from car manufacturer websites as well as dealerships.

2.    Always Request For Lease Payments First
Assuming that you've settled on a particular car model that you want to get an auto lease on, before doing anything else, ensure that you request for lease payments first from the dealer leasing the vehicle to you. Be very particular that you want the lease payments to be based on the sales price quoted on the vehicle.

Photo by Arto Myllys from FreeImages
Once that is done, you'll need to set parameters for the lease before asking for monthly payments. For example, define that you want a 24-month lease with a mileage of 12,000 at $1,000 drive-off fees.
Most people leave these terms to the dealer to define and end up getting an overpriced auto lease agreement. Ensure that you set the terms yourself. Using this approach will help you secure a lease agreement that fits within your budget.

3.    Use An Auto Lease Payment Calculator
In order to know the best monthly car lease instalments to pay that fit within your budget, you can take advantage of a car lease calculator. This calculator is a special online tool that helps you figure out what your monthly lease payments are, the lease fees, the depreciation fees, the monthly sales tax payments, and the pre-tax monthly payments.

Some of the details you need to have when using an auto lease calculator are the Manufacturer's Suggested Retail Price (MSRP), the vehicle's estimated residual value at the end of the lease contract, the length of the lease term, and the interest rate.

Using an auto lease calculator will help you choose the vehicle that suits your needs, negotiate the best terms with the dealer, and lease it within your budget.

Wondering which calculator to use? Here is our recommendation of the best car lease payment calculator you can use.

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