Many drivers prefer to lease -- monthly
payments are lower and you're not stuck with one car for more than
a few years.
Before you drive off the lot, check out these tips to help you negotiate the best deal.
With interest rates hovering near record lows, and prices for used cars on the rise, it's a great time to lease a vehicle.
Car experts say leasing is for you if you like a new car every few years, and you drive less than about 12,000 miles a year.
But before you sign that contract, make sure you're getting the best deal possible.
Edmunds.com recommends not even mentioning you're planning to lease when you visit a dealership.
Instead, negotiate a purchase price, then ask your salesman to draw up a lease contract at that rate.
The bank offering you the lease will actually be buying the car, so if you can negotiate a good price for what's called the "capitalized cost," your lease payments will be lower.
Compare the capitalized cost you're offered to the true market value of the car on sites like Edmunds.com and TrueCar.com.
Pay attention to the "drive off cost" -- the amount you need to pay upfront.
If you want to make a smaller down payment, your monthly charges will be higher.
And check the number of miles allowed in your contract. Expect slightly higher monthly payments if you want to up the mileage allowance.
Finally, don't get too attached to the car. If you decide to buy it once the lease is up, you could end up paying more than the vehicle is actually worth.
Before you drive off the lot, check out these tips to help you negotiate the best deal.
With interest rates hovering near record lows, and prices for used cars on the rise, it's a great time to lease a vehicle.
Car experts say leasing is for you if you like a new car every few years, and you drive less than about 12,000 miles a year.
But before you sign that contract, make sure you're getting the best deal possible.
Edmunds.com recommends not even mentioning you're planning to lease when you visit a dealership.
Instead, negotiate a purchase price, then ask your salesman to draw up a lease contract at that rate.
The bank offering you the lease will actually be buying the car, so if you can negotiate a good price for what's called the "capitalized cost," your lease payments will be lower.
Compare the capitalized cost you're offered to the true market value of the car on sites like Edmunds.com and TrueCar.com.
Pay attention to the "drive off cost" -- the amount you need to pay upfront.
If you want to make a smaller down payment, your monthly charges will be higher.
And check the number of miles allowed in your contract. Expect slightly higher monthly payments if you want to up the mileage allowance.
Finally, don't get too attached to the car. If you decide to buy it once the lease is up, you could end up paying more than the vehicle is actually worth.
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