Guide: Finding The Best Car Lease Deals
Taking on $20,000 or more to purchase a new car might not be the best financial decision for everyone.
While buying a car should leave you with decent equity in your purchase once you eventually pay it off, finding the top lease deals on cars might be better option for some people.
The best vehicle lease deals offer lower monthly payments that might be the only option for some cash strapped consumers looking to get into a decent car.
If you depend on your car for work or drive long distances, and your financial situation won’t allow you to purchase a new car or decent used car, settling for a used clunker might only lead you to headaches.
While you may be able to find a decent deal on lower quality used cars, the money for repairs will likely begin to add up. Finding the best car lease deals can help keep you safer as lease car deals allow you to get into a more dependable car for less money.
Image source: Automotive Digest
With so many different vehicle lease deals out there, how do you know which best auto lease deals are authentic? In this brief article, AdvisoryHQ will explain why you should shop around for lease deals on cars. We will also look at who benefits from the best vehicle lease deals.
We will then offer information on what to look for in the top car lease deals, including lease car deals with no hidden fees, the best deals on car leases with a negotiable money factor, and the best car lease deals with no money down.
Finally, we will offer information on where you can start your search for the best lease deals on cars.
Why Should You Shop Around for Lease Car Deals?
Unfortunately, there are some scammers out there whose supposed best car lease deals will leave you paying as much as if you had purchased the car.
The whole purpose of searching for the best auto lease deals is to find a cheaper way to get into a quality car. If you end up paying a monthly payment on your vehicle lease deal that is similar to the monthly payment on a vehicle loan, that is the first sign that the lease deal on your car was sketchy.
As with anything, it pays to take your time and research all the options available. Many dealerships and banks will take advantage of customers who are in urgent need of a car, offering lease deals on cars that will leave you paying excess hidden fees and a high monthly payment.
Some dealerships may only offer 2-year lease deals as a way to try to get you to commit to a longer lease even if you had only planned to lease the car for one year.
Another reason why it pays to shop around for the best auto lease deals is because the various fees associated with leasing a car can add up. While one dealership may be advertising lease car deals with extremely low monthly payments, these lease car deals most likely will come with a higher upfront “drive-off fee.”
If you are strapped for cash, it might make more sense to find the best car lease deals with no money down even if that means that you’ll have a higher monthly payment.
Furthermore, many car lease companies may try to talk you into signing a best vehicle lease deal for a four- or five-year car lease. The longer the top car lease deal that you sign, the less money you will pay per month.
If, however, your lease deal is over three years long, you most likely won’t benefit from the manufacturer’s three-year bumper-to-bumper warranty. Two-year lease deals may cost you a bit more per month, but they will save you from having to invest in expensive repair fees at the end of your best car lease deal.
Lastly, it pays to research the best car lease deals available to you in order to compare what you will pay in insurance for the best lease deals on cars. Since leased cars have a higher liability and since the company that offers you the best deals on car leases will require high levels of coverage, you will most likely end up paying a pretty penny even on the best auto lease deals.
The specific amount you pay for insurance, however, will depend on what type of car you lease, and you may be able to save some serious cash by comparing the best lease car deals on different types of cars.
Who Benefits from the Best Lease Car Deals?
There are several reasons to search for the best lease car deals. As we mentioned above, the best auto lease deals can get you driving a quality car for a much lower monthly payment than if you were to get a loan to purchase the car. If you have gotten tired of continually having to pay for expensive repairs on your less than dependable used car, the best vehicle lease deals may very well be your best option.
Furthermore, many companies often look for lease car deals as a way to offer cars to their employees for work purposes.
If you are a business owner and your business depends on using cars to get your work done, outright purchasing several cars can be an overwhelming one-time expense. For businesses that don’t have the excess cash for such a large one-time expense, the best car lease deals allow you to spread that expense out over time.
Many dealerships will offer businesses special lease car deals if they lease several cars at once and these vehicle lease deals may very well be preferable to outright purchase of several cars.
For example, if your company is looking to expand into a new market and you want to offer company cars to your employees during the initial phase of this expansion, the best auto lease deals will give you access to cars for a limited amount of time for the least expense.
What to Look for in the Top Car Lease Deals
The specific terms and conditions of the best car lease deals that you seek out will depend largely on how you want to use the car. For example, most of the top car lease deals will come with a mileage limit of anywhere between 8,000 and 12,000 miles.
If you know your driving habits and think you will be driving your leased car often, you obviously will want to search for vehicle lease deals with higher mileage limits.
Below we offer three characteristics that all of the best car lease deals should include.
1. No Hidden Fees in Vehicle Lease Deals
When you are searching for lease car deals, you know that you will most likely be paying a monthly fee and a drive-off fee, unless you opt for the best car lease deals with no money down. Outside of these two fees, however, the best lease car deals shouldn’t charge extra fees that can add up.
Many of the shadier lease dealerships may offer lease car deals with an artificially low monthly payment or drive-off fee. Behind these low payments, however, there may be a whole host of other fees, including a bank processing fee, dealer fees, high security deposit, and others.
The best car lease deals shouldn’t have any hidden fees. Rather, the best auto lease deals should offer concise, easy-to-understand information regarding what you will be paying for the best auto lease deal you sign up for.
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2. Best Car Lease Deals with No Money Down
Most of the best lease car deals will require you to pay some sort of drive-off fee or down payment on the car you lease. When negotiating the best car lease deals, you usually can ask the dealer to lower the monthly fee by raising the drive-off fee. Alternatively, you can lower the drive-off fee on other lease car deals by paying more monthly.
If you are strapped for cash, you may be able to negotiate for the best car lease deals with no money down. Though you will inevitably end up paying higher monthly fees for these types of lease car deals, they may be the best option for people with a tight budget.
3. Best Lease Deals on Cars with Negotiable Money Factor
The best car lease deals should also offer you a competitive interest rate, known as the “money factor” in the best lease car deals. While the money factor on the best auto lease deals will depend on your location, your credit history and other factors, you should never pay more than 5% interest for the best car lease deals. If you feel that you are not being offered a good interest rate, it can pay to call other dealerships offering similar lease car deals to compare the money factor at different agencies.
Where to Find the Best Auto Lease Deals
Every car dealership will have their own best lease car deals. Since many dealerships have monthly quotas, you may be able to find the best lease car deals toward the end of the month. You can also search the internet for the best auto lease deals offered online. Below we offer information on three tools that can help you find the best auto lease deals.
1. Best Lease Car Deals by U.S. News
U.S. News offers a quality search tool that will help you locate the best lease car deals in your region. With a quick online search, you can compare the best car lease deals for different makes and models of cars in your zip code region.
2. Best Lease Car Deals by Forbes
Forbes Magazine also offers information on the best auto lease deals available. According to their research, “budget-minded urbanites can lease the easy-to-park two-seat Smart For Two coupe for monthly payments as low as $99/month. That’s a little over three bucks a day, which is less than the cost of a tall coffee at Starbucks.”
They also feature the best auto lease deals for cars with monthly payments under $200.
3. Best Lease Car Deals by Real Car Tips
The best lease car deals can also be found at RealCarTips.com. This website offers quality information on quality lease car deals that is updated monthly. You can find the best car lease deals for a variety of car types. For example, featured in September 2016 was a Chevrolet Cruze at $179 a month with zero down.
How the Best Deals on Car Leases Can Save You Hundreds of Dollars
When searching for the best deals on car leases, you need to know how you plan to use the car and what you plan to get out of the car.
The best lease car deals are those which adapt to your specific driving habits and your long-term plan for the lease car deal. By taking the time to research the best auto lease deals out there, you can easily find a lease car deal that will get you into a quality car for an affordable monthly payment.
AdvisoryHQ (AHQ) Disclaimer: Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info. Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.