Making Sense of a New Car Lease Deal | NY

1. Making Sense of a New Car Lease Deal It's easy for car dealers to make a bad lease deal sound too good to be true. This is the reason it is important to review every offer you receive carefully. On the other hand, many lease deals can be incredible bargains. Taking the time to research and compare Brooklyn Car Leasing, NY will ensure you get the top lease deal on the new car you want. Here are a few simple tips on how to make the right choice. Leasing Can Allow You to Drive a New Car More Often Leasing is a great option for those who drive average mileage for a few years and then trade in their vehicle for a new car. For those who drive 100,000 miles or drive their cars for long after they've paid them off leasing is not a good choice. Lease terms can be as short as 24 months or as long as six years. If you're looking for the best lease deal aim for a lease term of 24 or 36 months. Any longer and your vehicle will begin to depreciate rapidly, meaning your lease will cost more. •Tip:Make sure the manufacturer's warranty covers your new car for the entire length of your lease. That way you will avoid unexpected repair and maintenance fees. Upfront Savings Let Drivers Get behind the Wheel of a New Car for Less When leasing a new car, you're paying only a fraction of the total price of the vehicle. You pay for the amount you use - the amount the vehicle depreciates during the lease term. Since the complete cost of leasing is less you'll be required to pay less at the time of signing. Many lease offers require $0 due at signing - though the first monthly payment will still be required. •Tip:By selecting a vehicle with a high residual value, you will pay a lower percentage of the total price to lease. Try comparing two similarly priced models to see the difference.

2. Leasing Allows Consumers to Drive a New Car They Would Otherwise be Unable to Afford Over 50% of luxury vehicle drivers lease. First, leasing a luxury vehicle makes sense as the residual values are usually higher, meaning you'll pay less of the total cost. Second, leasing allows drivers to get behind the wheel of a vehicle they might otherwise not be able to afford. Even though leasing high-priced luxury vehicles is a common practice, you can easily find great lease deals for low priced vehicles. 5 Car Leasing Terms You Must Know! When it comes to leasing a car, every potential car leaser is obviously looking for the best deal possible. However, the problem is that most of these potential customers do not really understand the lingo and terminology associated with Auto Lease Broker Brooklyn, NY. This makes it sound like they don't really know what they are talking about when they are trying to negotiate a good deal at the car dealership. There are many terms that dealers often use among their co-workers when discussing lease deals and understanding most of these terms can be work to your advantage. What follows are five leasing terms along with not only what they mean, but their significance as well. 1- Capitalized Cost The capitalized cost is basically the reduced selling price that the dealer is using to calculate your monthly payment. If it's a good lease deal, the capitalized cost is significantly lower than the MSRP. A lower capitalized cost or cap cost gives you a lower monthly lease payment. 2- MSRP The MSRP stands for Manufacturer's Suggested Retail Price. It is basically a marked up version of the invoice price which is what the dealer pays the manufacturer to put the car on the lot. It is important to always compare the MSRP of a vehicle to its invoice price to see just how low of a selling price is possible. The selling price of the car is the negotiated price that the dealer is using to compute your monthly lease payment. You should aim for a selling price that is as close to or even below the invoice price. 3- Cap Reduction The cap reduction is the sum of money you pay at the time of signing a new lease deal in order to reduce your selling price. For instance, if the dealer agrees to a lease deal where the capitalized cost (selling price) is $25,000 with a cap reduction of $1,000, this $1,000 would reduce your selling price to give you a net capitalized cost of $24,000. While it is true that you are putting this money "down", you shouldn't confuse the cap reduction with the down payment because the down payment is generally the sum of the cap reduction AND other fees such as tax, licensing, and registration fees. The cap reduction is the specific amount of your down payment that is being used to reduce your capitalized cost and therefore reduce your monthly payment. 4- Residual Value The residual value is a dollar amount or percentage that represents the projected value of a car after a specific number of months or years. It is generally set by the finance company that provides your lease agreement and cannot be changed. When looking for a car to lease, you should always

3. seek cars with high residual values. Cars with higher residual values have lower monthly payments. Compared to American cars, Japanese cars have much higher residual values which make them great cars to lease. You can use a car lease calculator to see how variations in residual values increase or decrease your monthly lease payments. 5- Money Factor The money factor is basically the interest rate in leasing terms. The money factor should be a small numeric figure that should be comparable to the interest rates available for auto loans. You should know how to convert money factors into interest rates to give you an idea of how much the dealer is charging you in finance charges for your lease. To get the equivalent interest rate, take the money factor and multiply it by 2400. Compare this value to the interest rates available for customers interested in financing a car.