While leasing may seem complicated and overwhelming, identifying a great lease deal is actually quite simple. These few key points make up everything you need to know to spot a great auto lease deal:
Look for a High Residual Value
The residual value is the largest determinant in getting a great auto lease deal. The residual estimates the vehicle’s worth by the end of the lease term. Most vehicles are predicted to be worth of their value by the end of the lease, meaning that you are paying for that 50% use. Vehicles with high residuals are forecasted to hold more than 50% of their value at the lease completion. Luxury vehicles can have a residual as high as 64%, meaning you could pay as low as 36% of its use.
Keep in mind that the residual value is a formula. For example, the average price of a new car is $33,000. If the residual is set at 50%, you will pay $16,500 over a typical lease term, which is 3 years. Your monthly payments will be roughly $458. If the residual value is set at 60%, then you will pay $13,200 over 3 years. Your monthly payments will be around $366. When you lease a car with a high residual, you are paying for less than half of its use.
D&M Auto Leasing provides real market residuals…
Seek Competitive Interest Rates
Interest rates also have a significant impact on your monthly payments. Unlike residuals, the interest rate is a little more negotiable. To score the best interest rate, call a few third party leasing companies. Most likely, the rep will give you the vehicle’s “money factor”, which is the interest rate translated into a small decimal number. Multiply the money factor by 2400, to figure the interest rate.
D&M Leasing offers competitive interest rates…
Negotiate for Low Fees
Additional to a security deposit, it has become common practice for leases to include acquisition and disposition fees. You will have the most luck negotiating these fees, however, because they vary depending on the car leasing company. An acquisition fee is the charge issued to cover the expenses for arranging a lease. Disposition fee is the charge administered to cover the cost of preparing the car for sale.
A D&M EZ Lease offers no down payment as well as no payments for 60 days…
Pursue Leasing Companies With High Customer Retention
Customer retention means a company has loyal consumers due to positive car leasing experiences.
D&M Auto Leasing attributes 70% of its business to repeat and referred clients…
You are now fully equipped to recognize the best car leasing deals. Contact D&M Leasing today for a great car lease deal and top-notch customer service!