There’s no denying that car leasing yields a lot of advantages over ownership. After all, not only are the available vehicles brand new, but it also helps us avoid making a substantial investment that we will never get back due to the depreciation in value. And more importantly, the monthly payments that lease deals require are considerably less than for purchase financing, making them much more affordable for those of us with limited resources.
But just because car lease deals are cheaper, it doesn’t necessarily mean that there aren’t potential pitfalls to avoid. There is no such thing as a free ride, after all. To this end, here are a few money-saving tips to keep in mind before you start leasing a vehicle.
1. Learn to negotiate
While haggling is commonly used when purchasing a car, you should also learn to do the same before you decide to lease a vehicle. The down payment and mileage limits, for example, are just two factors that can help you drive the cost down. Always remember that taking the time to negotiate now can potentially save you even more money down the line, getting you the best lease deals as a result.
2. Never lease vehicles beyond their warranty
One of the reasons why a lot of people prefer to rent or lease a car rather than buy it is because of the manufacturer’s warranty. As such, it makes sense to choose a vehicle that is still well within its designated coverage. In this way, you will avoid paying more than you have to in the event that something goes wrong, saving you not only money but time as well.
3. Opt for extra miles
It’s good standard practice to pay upfront for extra miles when leasing a vehicle, especially if you are expecting to go over the allotment. After all, any excess miles covered usually come at higher rates. And the money that you spend on the additional miles which are unused can either be returned back to you or used on your next lease.
4. Understand the policies
It’s not difficult to overlook minor details when leasing a car. However, it’s crucial to have a clear understanding of all the fees as well as policies before acquiring the vehicle. In this way, not only will you avoid paying any unexpected costs, but you will also have better control over your budget.
5. Always research
If you are considering purchasing the vehicle after the end of the lease, always ensure that the car is worth the asking price. Do a little research on its current value and how well it will maintain it. If the numbers don’t add up, try to drive the price down. And if you are unable to do so, just walk away.
Despite all of the benefits that it yields, there are still good standard practices that you should follow before you decide to lease a car. And by keeping these money-saving tips in mind, you will be minimizing the chances of paying more than you need to without compromising on the quality of the chosen vehicle in the process.