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Thinking about Leasing a new car, truck, van or suv? Wouldn't it be great if you could use the same Leasing Software that Car Dealers use every day to calculate exact lease payments?
Well now you can with Lease Wizard - the exact same software that your local Dealer uses. Use Lease Wizard and take advantage of an average savings of $1,373 on your next lease. Lease Wizard has been praised by USA Today, Motor Trend and the New York Times....and it's what we use to get rock-bottom lease payments.
Learn The Secrets Of New Car Leasing From A Seasoned Pro
What Do You Want To Know About First?
14 Secrets To Know Before You Lease A New Car, Truck, Van or SUV :: 5 Secrets To Know During Your Lease :: 10 Secrets To Know At The End Of Your Car Lease :: How To Compare New Car Lease Offers :: How To Save Another $25 A Month On Your New Car Lease
14 Secrets To Know Before You Lease A New Car
- A New Car Lease will typically be $80 to $120 a month cheaper than a normal finance agreement ( A Loan).
- Leasing a car is a lot like renting a car - So put as little money down as possible - after all, you're only "borrowing" that car, van, truck or SUV.
- Never lease a vehicle if you drive more than 20,000 miles a year. Auto Leases with those mileage requirements are usually a bad deal.
- When selecting a vehicle, choose the car, van, truck or SUV with the highest residuals - see the little know Banking Industry Data that can save you thousands of dollars - whether you lease or buy.
- Many Car Makers Offer Lease Specials - yet most folks are attracted to New Car Leasing by Dealer Advertising. Only rely on National or Regional New Car Leases & Special Offers sponsored by Car & Truck Makers listed on this page. And make sure you check if the the vehicle you're interested in has any significant rebates or incentives
- in almost all cases they can be applied to a leased car, truck, van or suv.
- There are only four Lease Funding Sources you should consider:
- National or Regional New Car Lease Specials sponsored by the Manufacturers Financing Groups - see the manufacturers list and click on the car maker of your choice
- Your Bank or Credit Union - Just make a phone call and find out what they can do for you
- The Dealerships that Sell the Brand of Vehicle you're considering (Check out Secrets to Handling The Car Dealer. Although Car Dealers are a great source for lease funding. They have dozens of leasing options to choose from, so be careful here. After all, do you really think the majority of New Car Dealers investigate the Lease Options they have and choose the one that's best for you?
Nope. They'll focus on the Lease Option that will pay them the highest Brokerage Fee - anywhere from 1% - 8% of the total amount leased. On a high-end vehicle, that could mean you're providing an extra $6000 profit to the Dealership for absolutely no work on their part - it's all software driven....and it's already been paid for. See Car Loan and Lease Secrets to find out more about this nasty part of Automobile Retailing. - And finally, visit Lease Wizard - perhaps the easiest way to save a ton of money on your next new car lease
- The 3 Year Lease is the best choice for most folks because almost every Car, Van, Truck & SUV Maker offers a minimum three-year bumper-to-bumper Warranty. So, if you lease with the term set at 3 years, you'll be totally covered and not have to pay anything extra to extend the warranty protection.
- Lease Mileage Allowances are typically 10,000 miles, 12,000 miles, or 15,000 miles - but you can ask for, and get, other mileage terms. Many folks drive more than 15,000 miles a year - for instance, I do 17,000 miles a year on my 36 month leases.
- If you're like most people you need more than 10,000 or 12,000 miles a year. So, buy the extra miles at the beginning of the lease. How much do the extra miles cost? Well, let's say you see a special lease offer for $250 a month for 36 months at 12,000 miles per year. If you needed 15,000 miles a year to make a lease work for you, you'd generally pay between $10 - $22 more a month for the extra 3000 miles per year.
- Make sure get enough seat time....so you don't make a very expensive mistake. It doesn't make a lot of sense to get a great lease deal on a vehicle you can't stand.
- Price-Shop like you were going to Finance your new car purchase. Even if you're looking at a Manufacturers Subsidized Lease, make sure you get competitive bids. See The Best Price, the First Time, Every Time to learn how to get the absolute best new car price quotes.
- Everything is Negotiable! The Capitalized Cost Reduction, the Lease Term, the Mileage, Options & Accessories, Security Deposits, etc. The end-of-lease expenses are the only pats of an Auto Lease that are non-negotiable.
- Many Car Lease Contracts require you to have higher insurance coverage than if you were financing. Most require coverage of $100,000 per person/$300,000 per occurrence for Bodily Injury/Death, $50,000 in Property Damage coverage and no more than a $500 deductible. See Car Insurance Secrets to cut your Insurance Rates by up to 54%.
- If you are planning to add any options or accessories, make sure those items can be residualized - meaning that you will only have to pay for a percentage of those items - not 100% of their cost.
Secrets To Know During Car Leases
- Don't add any accessories to the vehicle after the Lease Contract has been signed. When the vehicle is returned, it must be returned in the original condition. Even a simple Alumni Sticker in the rear window has to be removed before you return the vehicle....or they'll charge you for removing it.
- Keep all maintenance records.
- Make sure you service the vehicle at the required intervals.
- Ending your Lease before the normal termination date usually will cost you a fortune. You can't just return the vehicle when you want to - and walk away. Be sure you choose the right vehicle - for more help, see how to avoid a $26,000 mistake.
- If you must get out of the Lease, the only option you "might" have is having someone else assume your Lease. Check with the Lease Holder and then visit Swap-a-Lease
and Lease Trader
to find a person that might want to assume your lease.
10 Secrets To Know At The End Of A Car Lease
- Have your vehicle washed and detailed.
- Have your vehicle serviced just before you turn it in.
- If you have a crack in the Windshield, or a chip, get it repaired. In many States, Chips and Cracks are covered under your insurance policy and may cost you nothing to repair.
- Take care of any minor repairs yourself.
- If you are over your Mileage Limit, and have really steep mileage fee's, consider selling the car yourself rather than turning it in and paying the penalty - if that will save you any money. Just check your Contract to see if it's allowed.
- Dents and Scratch's larger than what's allowed (per your Auto Lease Contract) need to be repaired by a local body shop - you don't want to pay what the Bank will demand for those repairs.
- Sixty days prior to the Lease ending, actively begin your research on a replacement vehicle.
- Keep a sharp-eye out for Lease offers sent to you by Mail - They'll be at least a couple of great offers and you don't want to miss them.
- Do not purchase the vehicle at Lease End. Purchase option prices are usually inflated. If you really like the vehicle you leased, do a bit of research and find that exact vehicle elsewhere - with a Certified Warranty - and save at lease a $1000.
- Check Private Party and Trade-in figures....before the lease ends. If by chance, your vehicle is worth more than the end-of-lease figure (the Residual), go ahead and sell it or trade-it in....and use the profit towards a new lease or purchase.
How To Save $25 A Month On New Car Leases
About 1/2 the time, it’ll be the Car Manufacturer that has the best Lease deal. So what about the other times? Well, after you’ve gotten a Car Makers lease offer (Discover How To Get The Best New Car Sale prices & quotes by Clicking Here). Then I’d suggest you look at a terrific online source
Lease Wizard has been a top leasing advisor for years and consistently receives excellent reviews. If you want to squeeze every dollar out of a new car lease, Lease Wizard is for you.
"How To" Tips On Comparing New Car Lease Offers
Monthly Payment Components
Comparing the monthly payments is a starting point in comparing different lease offers. However, the components of the monthly payments may differ as well, and those differences may affect you at either the beginning or the end of the lease.
For example, does one lease have a higher cap cost reduction or security deposit than the other? Does one have a higher rent charge? Are the residual values for the vehicles the same? Are the gross capitalized costs the same?
Use the monthly-payment-calculation portion of the leasing form to pinpoint similarities and differences in the leases you are comparing.
End-of-Lease Payments
At the end of the lease, you may face a variety of payments. Your decision about what to do (return the vehicle, buy the vehicle, or re-lease the same vehicle) will affect your costs.
For example, if you return the vehicle, you might have to pay a disposition fee, excessive wear charges, or excess mileage charges.
Compare all the costs that you think you are likely to have at the end of your lease. For example, if you think you will probably turn in the vehicle at the end of the lease, compare the disposition fees and excess mileage charges in the leases you are considering.
Although you may not be able to negotiate the excess mileage charge, you can compare these charges (for example, 15 cents per mile instead of 25 cents per mile) as part of your overall comparison.
Gap Coverage For Car Leases
Gap coverage is often, but not always, included in lease agreements, so first ask whether it is included without an additional charge. If gap coverage is included in the leases you are considering, compare the coverage's and see if there are any differences and determine what you'll owe if your vehicle is stolen or totaled.
If gap coverage is not included, it may be purchased - and I highly recommend you do - it could save you from having to declare Bankruptcy - Yes, I've seen it happen. If you decide to purchase gap coverage, compare costs and coverage's and get estimates from several providers, such as the dealership, the leasing company, or an insurance company. Get more "Inside Info" on Gap Coverage here.
Rent Charge/Interest For Car Leases
Just as interest rates and total finance charges for vehicle finance agreements can vary, the rent charge may vary from lease to lease. Some lessors may subsidize the rent charge and offer you a lower rent charge. Paying a lower rent charge is a "good thing" and will probably result in a lower monthly payment.
Even if the monthly payments are the same on two different leases, paying a lower rent charge might be the way to go. If the monthly payments in two leases are the same and the gross capitalized costs and the adjusted capitalized costs are the same, paying more depreciation and a lower rent charge will reduce the lease balance faster and create a lower residual value. This approach is particularly beneficial if the lease has a residual-value purchase option.
On the other hand, a lower rent charge in and of itself is not necessarily a good deal - the lease with the lower rent charge may have a higher adjusted capitalized cost or a lower residual value (that is, higher depreciation) that makes up for any difference in rent charges.
You will need to compare the residual value, rent charge, gross capitalized cost, and the adjusted capitalized cost of the vehicles you are considering to determine if the lower rent charge is a real savings.
Up-Front, Ongoing, and End-of-Lease Costs
As with other financial transactions, there are often trade-offs among up-front, ongoing, and end-of-term costs. Be sure to compare all costs of the leases you are considering before making a decision.
You may want to minimize your up-front costs, or you may want to lower your ongoing costs. Be aware of the time value of money in your decision. In any case, you need to compare all the figures, not only the monthly payment, to make sure you understand the costs involved.
Total of Payments On Car Leases
This total of payments amount is the overall cost of the lease if you do not purchase the vehicle. You can use this figure to compare leases when deciding which lease offer is best for you. However, the figure does not reflect differences in security deposits, purchase-option prices, or the time value of money when up-front costs are different.
Although you will know the total of payments, you will have to decide how the timing of those payments fits in with your budget and your time value of money. Although you may prefer to minimize your up-front costs, choosing a lease with lower ongoing costs may reduce the total of payments.
Two leases may have the same total of payments but distribute the amounts differently among the up-front, ongoing, and end-of-lease time segments. You need to consider all the figures, not only the monthly payment, to make sure you understand what your costs will be and when they will be due.
Warranties and Car Leases
Compare the number of months and the mileage allowance in the lease with the vehicle's warranty period. If you are considering a lease term or a mileage allowance greater than offered by the warranty, be sure you understand what expenses you will be responsible for once the vehicle is no longer under the warranty.
Purchase Option and Purchase-Option Price
Many leases offer an option to purchase the leased vehicle at the end of the lease. Your circumstances may change over the term of the lease, and having a purchase option will increase your flexibility at lease-end. When comparing leases, look to see if each offers a purchase option, what the purchase price will be, and if there is a fee to exercise the purchase option.
If the vehicle turns out to have a higher market value than the residual value at the end of the lease, having a purchase option may enable you to take advantage of the difference - although it is a very rare occurrence. The only time you should ever consider this option is if you have butchered the mileage requirement or the vehicle has substantial damage.
Different Lease Sources
Vehicle dealerships and independent leasing companies usually have access to several different leasing options. A new car dealership will almost always be able to lease through the finance company of the vehicle's manufacturer.
The same dealership can usually also offer leases through independent finance companies or financial institutions, such as banks or credit unions. Once you have selected a vehicle, ask the dealership or leasing company to show you the terms and conditions of several different lease sources so you can choose the one that best meets your needs.
I would suggest that you shop for lease funding before talking to a Dealer. Check with your financial institution (Bank or Credit Union, for example) to see what terms are available. You should also visit LeaseCompare and PrimeLease - two very good Online Sources.
Early Termination Charges On A Car Lease
If you end your lease early, you'll probably have substantial early termination charges. Be sure to compare the early termination clauses in the lease agreements you are considering.
There may be differences in the methods for calculating these charges. You will want to consider any differences, the likelihood of early termination, and other terms in the lease offer. Differences in residual values may also affect your early termination liability.
Alternatives to Advertised Car Lease Specials
If you are responding to an advertisement for a lease, you may find that there is little room in that particular offer to negotiate more-favorable terms, because manufacturers or lessors often provide special offers that set some of the lease terms. However, you can still ask about alternatives to any advertised special.
For example, if a special regional or national deal is offered by Ford Finance on a 2006 Focus, don't just assume that the Selling Price of the Focus is set in concrete - many times it is not. If you can't negotiate the value of the Focus, you can ask if there are other lease companies that could meet or beat the deal offered by Ford Finance.
You would also want to check with Lease Wizard to see what they can find.
Other Car Lease Items To Negotiate
If you have negotiated the value of the vehicle, the capitalized cost reduction, the length of the lease, the mileage allowance, any vehicle options you have chosen, and (or) multiple security deposits with different lessors or on different vehicles, make sure that you have considered these differences when comparing auto lease offers.
For example, one lessor may offer you a 39 month lease instead of a 36 month lease; you need to compare the payments on these two leases while considering the different terms in each.
Single-Payment vs. Multiple-Payment Car Leases
You may want to compare single-payment and multiple-payment auto leases. In a single-payment lease, you make one single lump-sum payment in advance rather than periodic payments over the term of the lease. It's a rare offer yet they do exist.
This lump-sum payment must be less than the total amount you would pay if you were to make the normal lease payments, because the lease balance is less throughout the single-payment car lease, lowering the rent charge and therefore, the overall cost.
I do have an obligation to point out that not all Car Makers, Dealers, Salespeople, Insurance Companies and Banks are greedy or crooked. This site is dedicated to honest Companies and their Professional Employees who've grown weary of the ignorant and classless giving the automotive related industry a black eye......a black eye that I feel is very close to being permanent.
By using these new and used car guides, I hope to be able to help you find the Best Businesses, and the Professionals that represent them, with very little effort on your part and help you....
Save More Money and More Time Than You Ever Have Before.
It is also my hope that these Companies and the Professionals that represent them will have more business than they can handle - a reward they justly deserve.
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I guarantee that you will have an exceptional experience the next time you buy a car, van, truck or SUV - again, thank you for visiting this Web Site!
Tom O'Leary - "A Concerned Dad....and Automotive Analyst"
New Car Purchase - Exceptional New Car Purchase Advice and Automobile Purchase Strategies for your next new car or used automobile purchase.
Feel free to e-mail me at: Tom at my new car purchase (no spaces) dot com - or take a few seconds to send a question or comment by Clicking here
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