How Do I Lease The Next Vehicle I Buy?

Owning a vehicle is one of the biggest decisions you’ll ever make in your life. Not only is it a huge responsibility, it is also costly. In fact, according to Bureau of Labor and Statistics, transport including car ownership can eat up the biggest chunk of your household expenses. In other words, there’s very little room to make a mistake with your choice. The good thing is there’s a win-win solution for you. If you want to make sure you’re buying the best and the most practical car you can afford, lease it first.

Leasing is a cool way to access some of the newest car models in the market without spending too much money as you would if you decide to buy one. Moreover, you have many leasing options as even car manufacturers allow you to do it.

If you want to lease a brand-new vehicle, pay attention to the following:

Cost of lease:

Leasing payments are often way cheaper than the monthly payments you make on a brand-new car purchase. However, that doesn’t really happen all the time simply because dealers can slap you with too many fees and an incredibly large advance. The best advice at this point is to learn to compare leasing costs across different dealers within your area.

Insurance:

One of the main advantages of leasing a car is you don’t have to spend on auto insurance since it’s the lender’s responsibility. The downside is if something happens to the vehicle, such as it gets stolen or is damaged, the coverage may not be enough to recoup the loss. You will then be forced to spend thousands of dollars. As a precaution, look for a vehicle that is covered by gap insurance, which can kick in if the main auto insurance coverage won’t be enough.

Year of use:

If you’re planning to use the vehicle for 5 years, it’s best if you’ll just purchase a car. By then, you will have your own unit, and if you take good care of it, it can last for a few more years. But if you’re decided to lease, drive it for no more than three years so you can still be covered by the vehicle’s warranty.

Add-ons:

Dealers are here to make money, and they’ll attract you to spend more in many ways including add-ons like alarms or maintenance plans. Unless you need them badly, skip them, or you can negotiate for their costs to get the best deal.

Lease Still Expensive? Get a Car through an Auction

If after determining your lease price and you still think it’s expensive, you still have one more choice: you can get a vehicle from an auto auction, which bids out hundreds of varied vehicles. Many of these cars can be yours for as much as 75% off the car’s book value or even dealer’s trade-in value. These vehicles may not be brand-new, but a lot of them are recent models and in excellent condition as well as mileage.