Leasing a Car
Leasing a car might seem like a scary process, but when you lease you’re taking control of your budget. Leasing results in lower monthly payments than taking out a loan and more flexibility in the car you want to drive. When looking to lease a new vehicle it’s important to explore the options. You have access to a multitude of different models, safety features, prices, and dependability. Using your budget as a guide, you can make a list of the models you like that are within your price range - taking into account the gas mileage, dependability, insurance premiums, and maintenance costs.
Once you have created a list of models within the price range you feel comfortable with, it’s time to start comparing lease deals. Getting the right deal can save you thousands of dollars over the terms of your lease. Finding the right lease deal requires you to look at the larger picture.
For example: if you see a lease deal that says “$200 month for 36 months. $2,500” due at signing. You’re looking at paying a minimum of 9,700 over the next 3 years. That doesn’t even take into account charges like acquisition fees, and costs for extra miles. You need to find a deal you are comfortable with long term.
Experts have created a formula for finding a ‘good’ lease deal. Here’s the formula:
(Down payment - first month payment + acquisition fee) / months of lease / MSRP x 10,000
If the total is less than 125, you’re getting a great deal!