Over the past 7 years I have helped my friends and family to get the lowest lease payments around. I want to help you with these tips to know before you go to the dealership.
Know about the money factor:
Do you know what a money factor is? The money factor is a confusing number that relates to the amount of interest that is charged on a lease. It comes from dividing the interesting rate by 2400, so if you have a money factor of .00375, which sounds low but it works out to be 9%, which you would run from if you were buying the car. If they give you the interest in money factor terms just remember the simple math to get the real percentage.
Paying for extended warranties:
If you are only leasing a car for 3 years, why would you pay for an extra warranty that covers 5 years? Most finance people will try to push the extended warranty because they make a huge commission on the total you pay for the extended warranty. Also, check the terms of the warranty in general. Most car makers these days are offering 3-5 years with the cars as a standard warranty, so don't get fooled.
12,000 Miles vs. 15,000 Miles:
Do you plan on just turning you car in at the end of your lease or will you end up buying another car? Most people end up buying another car after their lease is over...so why pay extra money per month on miles that truly don't matter. The only reason you pre-pay for miles is that you intend to just drop the car off at the end of the lease and walk away. If you intend on buying another car after your lease you can use the current lease with positive equity to purchase the next vehicle, just like you would if you owned the car.
Step 1: Know how to calculate the money factor into an interest rate. This alone will save you $1,000's.
Step 2: Don't pay for a warranty that you will never use, extended warranties can always be picked up at the end of the standard lease, if you decide to keep your car.
Step 3: Have an idea of what you want to do with your car after the lease is over, if you are going to buy or lease another car, don't pay extra for miles.
Don't be a victim at the dealership. Arm yourself with the information the dealerships don't want you to have. The only way to win is to find out their secrets, then beat them at their own game.
Want more info about how to Save Money By Leasing? I'll give you a FREE subscription to my world-famous, no hype auto lease tips and tricks newsletter, Just for visiting me at my Auto Lease Calculator Website.
Tuesday, May 27, 2008
A Beginners Guide To Leasing A Vehicle
Leasing can be intimidating for some people, but with a few tips you can negotiate like a pro and walk away from the deal saving $1,000's. I can still remember the first time I walked into a dealership and had to sit with the sales person to hammer out the deal. I felt prepared but still very nervous. I had this very same check list prepared and that gave me the confidence to get a fantastic deal, and have have been doing so ever since.
First: Make sure you know the facts about your vehicle
Nothing causes a dealer to smile more then knowing the person they are negotiating with has no clue about the actual value of the vehicle they want to lease. Get the facts about your vehicle from a reputable source like Kelly Blue Book. Know the actual value of the vehicle, not just the MSRP (Manufactures Suggested Retail Price). This will allow you to work with the dealer in getting the price of the vehicle down to what works for you. never be afraid to walk away from a negotiation if the sales person is not willing to work with you. Most times they will accept your offer after some struggle, as long as it truly is a fair offer.
Second: Talk to other financial institutions about the vehicle you want to lease.
It may be surprising to find out that car dealers and manufacturers do not lease vehicles, banks and financial institutions do. Some large manufacturers have their own financial companies to do leases and loans through, but the are separate from the dealership. All the dealership does is sell the vehicle to the lease company who in-turn leases the car to you. This means that you are not only subject to the dealers financing company, you can contact your bank or credit union, or even one of your major credit card companies, to see if they have a branch that deals with leases. Often you can get a better deal with a company you have an existing good relationship with, then with the dealers finance company.
Third: Beware of the add-ons to the deal
Once the dealership negotiates the price with you and there is an agreement on that, they shuffle you off to the finance team. They wrap up the legal paperwork and try to include add-ons. They will try to sell you an extended warranty, which you don't need to pay for up front Even if you intend to keep the car past the length of the standard warranty, you can always purchase an extended warranty near the end of the standard warranty, so why pay for it up front, keep the money in your pocket. Other add-ons include, tire and rim protection, tinting, etc. Just know that everything they sell you turns into a large commission for them. So if you do see a reason to purchase one of these, they are also negotiable. If you keep mind of these items, you will be on your way to a successful negotiation with the dealership. These few beginner tips can end up saving you $1,000's over the term of your lease, that is money you get to keep in your pocket.
To leasing a car on your own terms
Chris Richards
Want more info about how to Save Money By Leasing? I'll give you a FREE subscription to my world-famous, no hype auto lease tips and tricks newsletter, Just for visiting me at my Auto Lease Calculator Website.
First: Make sure you know the facts about your vehicle
Nothing causes a dealer to smile more then knowing the person they are negotiating with has no clue about the actual value of the vehicle they want to lease. Get the facts about your vehicle from a reputable source like Kelly Blue Book. Know the actual value of the vehicle, not just the MSRP (Manufactures Suggested Retail Price). This will allow you to work with the dealer in getting the price of the vehicle down to what works for you. never be afraid to walk away from a negotiation if the sales person is not willing to work with you. Most times they will accept your offer after some struggle, as long as it truly is a fair offer.
Second: Talk to other financial institutions about the vehicle you want to lease.
It may be surprising to find out that car dealers and manufacturers do not lease vehicles, banks and financial institutions do. Some large manufacturers have their own financial companies to do leases and loans through, but the are separate from the dealership. All the dealership does is sell the vehicle to the lease company who in-turn leases the car to you. This means that you are not only subject to the dealers financing company, you can contact your bank or credit union, or even one of your major credit card companies, to see if they have a branch that deals with leases. Often you can get a better deal with a company you have an existing good relationship with, then with the dealers finance company.
Third: Beware of the add-ons to the deal
Once the dealership negotiates the price with you and there is an agreement on that, they shuffle you off to the finance team. They wrap up the legal paperwork and try to include add-ons. They will try to sell you an extended warranty, which you don't need to pay for up front Even if you intend to keep the car past the length of the standard warranty, you can always purchase an extended warranty near the end of the standard warranty, so why pay for it up front, keep the money in your pocket. Other add-ons include, tire and rim protection, tinting, etc. Just know that everything they sell you turns into a large commission for them. So if you do see a reason to purchase one of these, they are also negotiable. If you keep mind of these items, you will be on your way to a successful negotiation with the dealership. These few beginner tips can end up saving you $1,000's over the term of your lease, that is money you get to keep in your pocket.
To leasing a car on your own terms
Chris Richards
Want more info about how to Save Money By Leasing? I'll give you a FREE subscription to my world-famous, no hype auto lease tips and tricks newsletter, Just for visiting me at my Auto Lease Calculator Website.
Tuesday, May 13, 2008
Auto Leasing Scams
Over the past 7 years I have worked with many different companies helping my friends and family get car leases. In that time I have seen a few scams that dealers run to entice people, who are not paying attention, into leases that are actually worse then buying the car outright. Here are some tips to look out for the next time you are at a dealer leasing a car.
Know about the money factor:
Do you know what a money factor is? The money factor is a type of interest that is charged on a lease. It comes from dividing the interesting rate by 2400, so if you have a money factor of .00375, which sounds low it works out to be 9%, which you would run from if you were buying the car. If they give you the interest in money factor terms just remember the simple math to get the real percentage.
Paying for extended warranties:
If you are only leasing a car for 3 years, why would you pay for an extra warranty that covers 5 years? Most finance people will try to push the extended warranty because they make a huge commission on the total you pay for the extended warranty. Also, check the terms of the warranty in general. Most car makers these days are offering 3-5 years with the cars as a standard warranty, so don't get fooled.
12,000 Miles vs. 15,000 Miles:
Do you plan on just turning you car in at the end of your lease or will you end up buying another car? Most people end up buying another car after their lease is over...so why pay extra money per month on miles that truly don't matter. The only reason you pre-pay for miles is that you intend to just drop the car off at the end of the lease and walk away. If you intend on buying another car after your lease you can use the current lease with positive equity to purchase the next vehicle, just like you would if you owned the car.
So you see that if you are prepared when you walk into the dealership you can beat the dealers at their own game. If you use these tips as well as the others I post here, you can get a car at well below sales price and get a lease payment you are happy with.
You can verify your monthly lease payment with my Auto Lease Calculator. Just fill in the form and it will quickly calculate the lease payment you should expect at the dealership, giving you even more information to help beat the car dealers.
To knowing before you lease
Chris Richards
Expert Car Buying Tips
Monday, May 12, 2008
Hi Everyone
Hi everyone my name is Chris Richards, I am new to blogging so I am going to start out slow and talk about why I have created this blog. About seven years ago I was at a crossroads. I was paying for a car I did not want anymore...it was a 98 Mercury Sable, if you were interested...because I had a 5 year loan for the car. I started looking around at what I could do to get a new car. I discovered leasing and did as much research as possible. After only a few weeks of looking into the pros and cons, I found out that leasing is really the best solution for getting a new car....if you know what to watch out for. Since that time I have purchased 3 more cars on leases, as well as helping out my friends and family get the best lease deals they can. I created a little spreadsheet that would calculate the terms of any lease, as long as you had a few items of information. I recently put that system online and want to let everyone know about it. Check out my Auto Lease Calculator. It is a free site that will tell you what to expect your monthly lease payment to be on any car that you are interested in. Take a look at the site and see what you think. I will be posting other information and tips here when I get time.
Thank you for visiting and check back regularly.
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