One of the most difficult parts of leasing a new car is understanding what makes a good lease deal. Fortunately, by reviewing some key factors, you can find the best car lease deals in minutes online. The easiest way to find great lease deals is to request a free lease price quote from an online pricing service such as
TopCarLeaseDeals.com
Step 1: Finding the Lowest Lease Price
Typically, the complete cost of the lease is called the capitalized cost. You can negotiate the cap cost of the lease the same as if you where buying the car.
Before visiting the dealership to find out the MSRP and the factory price.
The contact multiple dealerships to find out which offers the lowest possible capitalized cost prices in your area.
Expect a good capitalized cost to be lower than that recommended by the manufacturer or MSRP.
Step 2: Search for High Residual Value Vehicles
The residual value of a vehicle is what the car is worth at the end of the lease. You only pay for the depreciated value during the term of the lease. The higher the amount of residual value the vehicle retains, a smaller the percentage of the total cost of vehicle you will pay to lease
Find real vehicle residual value before you start negotiating your new car lease.
Research similar vehicles from different manufacturers and choose the model with the highest residual value.
Be sure to compare apples to apples by looking at residual values for the same lease term length.
The best car lease dealers are vehicles that retain at least 50% residual value after 24 months.
Step 3: Select the Lowest Money Factor
First, it is important to understand that there is a money factor and the annual interest rate. Some dealerships play with the numbers and take advantage of ignorant consumers. Generally, money factor is a decimal number as small as 0.0029.
For calculations of the annual rate of interest or APR use the following formula: Money Factor x 2400 % APR. For example, 0.00291 x 2400 6.98% APR
Calculating a money factor is based on the APR. Use the following formula: APR / 2400 money factor, for example, 6.98% / 2400 .00291 Money Factor.
Get your credit or FICO score before visiting a dealer in case of problems. If your credit score is very low begin working to improve beforehand, in order to obtain the lowest interest rates.
Compare offers from several banks and credit unions, private lenders often provide a competitive APR.
APR should not be greater than local interest rates for new car loans, the lower the APR, the better the lease deal.
Learn everything you need to know to get the best new car lease at
TopCarLeaseDeals.com. All information is free with no sign up, or obligation to lease.