How to Lease a Car

how to lease a carWe frequently talk about great car lease deals on this web site but we don’t spend much time talking about how to lease a car.

If you have never leased before or only infrequently, leasing can be a bit intimidating, confusing, or even frightning.

Leasing a car is not renting. It’s a form of financing based on the price of the car, the finance rate (called money factor), the term (number of lease months), and residual value (estimated resale value of vehicle at end of lease). If you know all these figures you can calculate monthly lease payments with this Lease Payment Calculator.

Because price is important and part of the monthly payment calculation, always get the best price you can when negotiating a car lease deal with a dealer. Better yet, visit this web site (Best Car Deals) often and find special lease deals being offered by car companies each month. Prices and other factors have already been discounted in those deals and require no further negotiating.

A dealer’s parent car company or finance company sets all the parameters of a lease, including money factor and residual value. You can’t negotiate those values because a dealer doesn’t have the authority to change them. The only parameter you can negotiate is price. Be careful not to get caught up in a dealer salesperson’s game of negotiating monthly payments because you might get the payment you want and still be getting a terrible deal (see Don’t Be a Payment Buyer).

If you are offered a lease deal by a dealer or you see an advertisement for a special lease, you can evaluate that lease with this Real Lease Value Calculator to determine if it’s a good deal or not. This is the only way you’ll be able to know what kind of deal you are getting.

If you don’t understand how to lease a car, or know how car leasing works, or how to determine if leasing is right for you, we strongly suggest you visit LeaseGuide.com before you make a decision. There, you’ll find all the information, advice, and resources you need to be a smart car leaser.

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