What you should know before leasing a car

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It is important to know how to negotiate the lease of a car. It is imperative to know that the processes of leasing a car are similar to purchasing the same: although results are different, they both look similar at the beginning. Whether you want to buy a car or lease it, you should first read car lease reviews of the company you are considering giving a try. To get the best deal in any of these ventures, you need to know how to negotiate. Let’s assume to want to lease a car: you have already done your research, gotten unbiased reviews about the company you want to patronize and are ready to walk to the dealership to lease the car, you need to hone your negotiating skill to get the best bargain. It’s common knowledge that companies intentionally keep the actual price of the car from you. Some intentionally make the deal unclear to get their clients muddled up.

The below, however, are some of the things you should know before considering leasing a car:

Compare prices from different dealers

Just like buying clothes and other products, you can only get the true price by comparing prices from other dealers. That way, you will get an idea of what the item is truly worth. The same applies to cars. Get prices from different dealers, so you have an idea of the price range in order to get the best experience of your investment. You should visit reviews websites like reviewsbird.co.uk to learn more on how to compare prices.

Understand the nitty-gritty of car leasing

You need to know what leasing a car really entails. Know the lease terms like money factor, depreciation and so on. Owning a car through finance plans and leasing a car means you may pay monthly, but the difference is in the amount you pay.

Negotiate the real cost of the car

Don’t tell the dealer you want to lease the car. It is better to first start all communication through email. If you tell the dealer your intention, he may lure you with a low monthly payment plan which can cover several months. Totaling these monthly payments, you will find that the cost may actually be higher.

Negotiating No down payment

It might interest you to know that you can lease a car without paying upfront; you can just pay the monthly payments instead of paying a huge down payment. The down payments can be included in your monthly payments. One advantage of this is if the car gets stolen, you won’t lose any money. In a case where you have paid upfront and something happens to the car, the dealer won’t refund your down payment.

Look out for the residual value in your negotiation

The difference between the residual value and the car price will give you the lease price. This means you should look out for residual value in your negotiation. The higher the residual value, the lower the lease money.

Consider the interest rate on the car

It is also important to consider the amount you will pay before leasing a car, as the lower the figure, the lower you will pay.