When you’re leasing a new car, you might feel like you have more power than a traditional buyer. Because you’re essentially renting a new car for a specific period of time, you don’t have to deal with applying for loans and paying high-interest rates each month. However, that doesn’t mean that it’s impossible to end up paying for much more than you bargained for. When it comes to vehicle leasing, there are plenty of pitfalls. The important thing to remember is to keep your head and not fall for a lot of sales talk. If you want to lease your car the right way and save money, here are some helpful tips.
Don’t Agree to the Opening Figure
You might not feel comfortable with “haggling,” but if you’re thinking about leasing a car, it’s time to get comfortable. While your salesperson might have a slick line about long-term savings, it’s up to you know the actual value of a car and get the best deal possible from your lease agreement. Anyone can find out the true value of a vehicle by going on consumer reports. If you’re armed with this figure, you’ll be able to talk down the initial offer easily. You should also be wary of salespeople trying to sell you a lease that’s longer than four years or something that includes a lot of unnecessary fees.
Keep Your Down Payment Low
Though you might feel tempted to put down a lot of money for your lease in the interest of keeping monthly payments low, it’s not always the right move. While it will decrease the amount you pay each month, it can also land you in trouble. Should anything happen to your car that isn’t covered by gap insurance or that simply exceeds the amount of coverage, you won’t ever see that money again. Remember that leasing a car isn’t like buying. You’re not putting money down as an investment, it’s more like a safety guard.
Ask About Mileage
Some lease agreements have a strict limit when it comes to mileage. That means that once you exceed the allotted mileage for your contract, you’re stuck paying a la carte for each mile. This can add up to a lot of money if you’re not prepared. To find out if leasing is really right for you, you have to calculate the mileage first before doing anything else. Otherwise, you could end up paying way more than you bargained for.
Don’t Pay For What You Don’t Need
Just like at any dealership, your salesperson is going to try to oversell. That’s just how it works. It’s up to you to know exactly what you’re paying for and to not agree to pay for something you don’t need. In terms of your lease, anything extra you pay for should go toward your protection. You should definitely pay for gap insurance so that you’ll be protected no matter what, but since the dealership still technically owns the car, you probably don’t need a warranty. It’s always important to read the fine print and do your research before committing to a deal, otherwise, you run the risk of overpaying.