HOW TO LOWER YOUR LEASE PAYMENTS
One of the biggest reasons people look to lease cars instead of buy is because it is exponentially cheaper to lease a car over buy a car — so chances are if you’re leasing, price points are important to you. Here are are a couple ways you can lower your monthly costs even further.
Choose a car with high residuals
At the end of the day, your lease payment is predominantly calculated based on how much your car is going to depreciate while you’re driving it. From the leasing company’s point of you, your car is going to lose about half its value over the course of a standard 2-3 year lease — meaning that the leasing company gets stuck with a lesser valued car at your lease-end. Therefore, if your residual is high, the leasing company is willing to lease it out for less money because they’re more likely not to lose money at the end of your lease.
This means that two cars that could cost the exact same amount to buy, could be leasing at two completely different price points because their residual values are drastically different.
Here are some car brands that generally have a high residual rate:
Sometimes, for whatever reason, a manufacturer will offer a car at less than the market value. These deals are pretty difficult to beat because the discounts are coming straight from the entity that you’d actually making payments out to. They do this by generally setting up a lease payment with fabricated residual or lower interest rate.
Remember that these are usually only offered on cars that aren’t leasing as well as they thought, due to a drop in popularity or other factors.
A big chunk of what makes up your lease payments is how much you’re actually going to use the car — so if you know this car isn’t going to be driven much, you can lower the amount of miles you lease for. You can sign a lease for as low as 7500 miles per term — just make sure not to go over your mileage or that can have the opposite effect.