The Crittenden Automotive Library

Choosing the Right Car for an Affordable Lease Deal

Choosing the Right Car for an Affordable Lease Deal

LeaseYourNextCar.com
DriveWrite
October 10, 2013

When you decide to lease a car, it can be tempting to select a desirable, new-to-market and technologically superior model that you could never afford to buy, for self-satisfaction and to impress your peers and fellow motorists. However, this is a far from wise decision if you’re on a budget, as the majority of lessees are. To select a car which will provide affordable monthly lease payments - and other costs - follow these tips…

1: Choose a model with a comparably low purchase price

It’s simple really: the lower the purchase price for a car, the cheaper the monthly payments for leasing such are likely to be. However, financers need to make profit and so you will need to ensure you choose a deal that benefits both parties.

Consider buying the car using other means of finance if the purchase price is particularly low, or you could end up with a deal that does not provide you with good value. Buying the car will mean you actually have ownership of it, which is not the case with close-ended lease agreements. You’ll have to hand the car back to the dealership for resale at the end of the lease agreement - not great if your monthly payments have paid off the majority of the motor’s capitalised cost!

2: Choose a car which will depreciate slowly

Any car which depreciates (i.e. loses its worth) quickly will cost more to lease also, simply because there will be less value in the asset by the time the lease period is up and you return it to the dealership for resale. This is why it is best to choose a model that has high residual value: dealerships are more likely to negotiate the leasing fees for such cars, meaning you could secure one for a very competitive - and affordable - capitalised cost.

3: Consider deals subvented by manufacturers

Some manufacturers will subsidise deals for particular models from their range in order to encourage consumers to lease them. While you may not find a subvented offer for the exact car you were originally looking to lease, it is worth exploring your options in this regard for much money can be saved. Lease deals benefiting from manufacturer rebates differ between dealerships and so you should do plenty of ‘window shopping’ before settling on any car and/or contract.

4: Read reviews and test drive all motors of interest

Of course, its not just leasing overheads which affect the cost of running a car - you’ll also have to consider fuel economy and maintenance costs when picking your vehicle (the latter is less of a worry if free maintenance happens to be included as part of your deal). Reading plenty of online reviews for any car of interest is a wise idea to understand how other drivers have got on with it, and what problems and/or faults (if any) have been commonly experienced over time. You should also test drive any car that takes your fancy at least twice, to ensure it handles and operates in a way that pleases you - you don’t want to get locked into a contract for a car you don’t like!