Leasing a Car? Avoid These Common Mistakes

In our last blog, we gave you some key insights into negotiating leasing terms that are favorable to you. Leasing is a great option if you like to upgrade your vehicle every few years and aren’t ready for a full-time car ownership commitment. However, like buying a vehicle, there is a process to navigate when you lease any car. If you’re new to leasing, or you want some advice on how to go about leasing your next vehicle, this advice is for you.

You negotiated, but focused on the wrong number.

It’s been a go-to dealership move to start you at a high monthly payment so you negotiate that down. However, the purchase price, or the Gross Capitalized Cost as it states on the leasing agreement, is what needs to be haggled. Once the total cost of leasing the vehicle is determined, they can use that figure to calculate leasing costs. If you haggle enough, you can get your monthly payment down significantly.

You bypassed negotiation altogether.

Despite popular belief, Google searching vehicles doesn’t mean you negotiated the price of the vehicle. There are certain dealer fees associated with leasing that can be reduced or eliminated, and when you’re at the dealership, you can haggle these. Do this face-to-face and work on getting the best deal.

You signed the first deal you found.

Even if the lease sounds good on paper, signing the first one that falls into your lap isn’t always the best option. Before signing, evaluate the entire cost of the lease over the duration of your terms. Then, compare that price to other potential deals you can find. It’s always the best idea to negotiate terms before you plan on leaving with the vehicle, this way you can let the dealership know you’re going to walk away if you can’t agree on favorable terms.

When comparing different lease deals, make sure you are factoring in the entire cost of each lease offer. The easiest way to determine how much your lease will cost is to take the monthly payment and multiply it by the number of months in your lease term. Add to this required taxes, fees, and any down payment you make. Then subtract rebates, trade-in allowances, and any other bonuses. Your final number is the total amount you will spend over your lease term, says U.S. News.

You put too much money down.

This is the golden rule when it comes to buying, so it’s the same for leasing, right? Incorrect. In fact, if you put more than $2,000 down, you’re wasting money. Leasing doesn’t usually take into account the money you’ve put down if you get into an accident or that you’ll get money back if you’ve paid more than the car is worth by the end of your leasing term.

 

About Byrnes Agency

At Byrnes Agency, we offer auto insurance solutions that can be tailored to meet your specific needs. Whether you have an old classic car or a brand-new model, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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