Getting a new car feels great. That first drive off the dealership lot is something special. It’s the beginning of a bond between you and your vehicle.
America loves its cars and trucks. However, America also loves getting a great deal.
For many Americans, purchasing a car outright is not an option. The cost of automobiles continues to rise precipitously. Car loans are one option if you really wish to own the vehicle. The other is of course choosing to lease the vehicle. This can get you the vehicle you want for the length of time you’re interested in it. Then when it’s over, you can move on to your next vehicle!
Current Great Lease Options
Right now, you can typically find some pretty great lease deals. Keep in mind all deals are as advertised by their manufacturer and the price can jump or drop depending on options and how the equipment available. That being said, here are some great options this month:
GMC Terrain - 39 months - $249/month
Kia Optima - 24 months - $149/month
Subaru Impreza - 42 months - $195/month
Volkswagen Jetta - 36 months - $149/month
Chevrolet Camaro - 39 months - $299/month
While those are excellent rates, there is often great deals available that can be negotiated. All that’s needed is a little known how on how to get a good lease deal. What is it that makes leasing an attractive option? Keep reading so you can better understand this method of getting a great car at a great price.
Extra Inventory On Dealer Lots
When a car dealership purchases cars from the company, they pay for the cars upfront. This means that the longer they have inventory sitting on their lot, the more nervous they get. If vehicles start to pile up, they are going to need to lower prices and offer sales to get them moved.
When a dealership has excess inventory, it’s the perfect time for the savvy consumer to strike. These dealers are more than willing to make a deal if it can get them out of potential losses. Lease terms are negotiated just like the cost of a vehicle. If they aren’t willing to move on the costs of a vehicle, many dealerships will offer up a vehicle that has more options and packages than you may have been asking for. This allows you to get a more refined car at the same price you would have been interested in anyway! Look for dealers quietly advertising that they have too much inventory and then get the deal you deserve!
Credit Scores and Their Effect on Lease Rates
Like many aspects of borrowing, your credit score will affect the type of lease deals that you qualify for. Many companies advertise their incredible low interest rates and offer zero down payment options. However what they don’t mention is that those are typically only available for high credit borrowers. This suggests a credit score of 720 or higher. While leases are still available for people with lower scores, they will often have higher interest, so higher payments. Low interest deals can still be secured, but likely are going to require larger down payments.
There is however a benefit to leasing a car and your credit score. A lease is treated just like a loan is for your score. When you lease a vehicle and then make all of the payments, your credit score is likely to improve since over a third of your credit score is based on your payment history.
Leasing Vs Buying - Which to Choose?
When you’re looking into a new car, one of the biggest questions you need to figure out is whether you want to lease a car or buy a car. Both options have their advantages and come down to person taste.
When it comes to purchasing an automobile, there’s one obvious reason. You now own the vehicle! There’s no restrictions limiting you and your automotive activity. This is all well and great of course, but there’s more to consider. When you purchase a car, you will often need a loan. This loan will have payments that are similar to (and typically far higher) than the monthly payments of leasing a vehicle. Most loans will be for a longer period than lease term. The vehicle is finally paid off, but it’s now an older vehicle. Those who choose to lease will be on their next new car while buyers are just now fully owning their vehicle.
Leasing a vehicle is perfect for people who like to stay current and don’t want too much commitment. The shorter lease terms also mean that you are unlikely to run into severe mechanical issues with the vehicle. And the timeline means that even if you do, they are almost assuredly going to be under warranty from the company. So what’s the downside to leasing? At the end of your lease term, you don’t have anything to show for it. There’s an option to purchase, and if you do take that option, you will typically pay more than if you had purchased the car outright. That being said, those who lease a vehicle are more likely to then pick a second lease option so they can choose a newer vehicle afterward.