How To Get The Best Car Leasing Deals For The Lowest Monthly Rental
If you’re considering leasing a car, or are already experiencing the benefits of car leasing, one of the main reasons that you are attracted to this form of Car Finance is probably the lower monthly payments.
But no matter how low your car lease payments are, I imagine you’d prefer it if they were even lower! And the good news is that there are a number of ways that you can minimize your monthly payments as much as possible.
3 Ways To Reduce Your Car Leasing Payments
1) Choose A Car With A High Residual Value
As you probably know, new cars start to suffer from depreciation as soon as they are driven off the Dealer’s forecourt, and most cars are worth about half their value after only three years. The amount that a car is worth at the end of a three year car leasing contract is known as its residual value, and is what the leasing company expects to get back for the car when you return it.
When you lease a car, most of your car lease payment goes towards paying off the vehicle depreciation on that vehicle over the lease period. So a car that loses less of its value will be cheaper to lease than one with high depreciation. So, you are clearly better off if you choose a car with a high residual value.
Some of the best car leasing deals available are on the more expensive quality brands. In general, it’s makes like Audi, Mini, BMW, Mercedes and Honda that hold their value well that are the best value lease cars. In addition, certain models such as the Toyota Prius and VW Golf BlueMotion have good residual values, as do a number of the new city cars which have become popular lately, such as the Honda Jazz and Fiat 500. Among the best 4×4 vehicles are the BMW X5 and X6, Land Rover Discovery and Range Rover Sport, and the Audi Q5 and Q7.
Remember, it’s not the value of a car that determines how much it will cost to lease, but how fast it depreciates and what its residual value is at the end of the car leasing contract.
2) Look Out For Car Leasing Special Offers & Contract Hire Deals
There are certain times of year when contract hire deals are available, and choosing the right time to lease a car could greatly reduce your car leasing payments.
Unless you have decided on a particular make and model of vehicle with the addition of specific factory fitted options (which would tend to be a special order), the best time to order your new lease vehicle is when there are ‘deals’ available.
This is not necessarily at specific times of the year, although there are often deals available at the end of each Quarter and at the year-end. For example, many manufacturers offer volume incentives to Dealers who may sell cars at cost or below as they approach the end of a month or Quarter, in order to reach their sales targets and qualify for their bonus.
However, it is more likely that you will find the best deals when certain situations arise in the marketplace. The best car leasing special offers are usually available when:-
- A current model is about to be replaced by a new model
- There is excess stock of certain models that needs to be cleared
- Manufacturers offer additional discounts due to poor sales
- Manufacturers offer reduced finance rates to boost sales
- Pre-registered vehicles are available at reduced prices
- Dealers have cancelled orders which they must sell quickly
If you are fortunate to be able to take advantage of one of these situations, you could save a small fortune!
3) Lower Your Contract Mileage Allowance
Your annual mileage is a major factor affecting the residual value of your lease car, and its value diminishes as its mileage increases.
Not all car leasing contracts are for a minimum of 10,000 miles per year, and some will go as low as 5,000. So, make sure you don’t take out a contract for more miles than you would actually travel, and you will reduce your monthly payments. But be aware that you will incur excess mileage charges if you exceed the agreed contract mileage.
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