Most of the time when you get car advice, it's about how to buy a car outright. But what if you'd rather lease? After all, leasing allows you to stay in a new car all the time if you swap it out for a new model every time the terms are up. But what makes a good lease, exactly?
One of the most important things to look for in a lease is residual value. That is, the car should still be worth a pretty penny at the end of your lease's term. Usually, a provider like ALG Inc. will have determined the value of the car to put in the lease contract. You want the car to have a high residual value because it will make for lower payments for you. After all, if the car is worth a lot once the lease is up, the leasing company can still charge a good amount for it should it ever be for sale.
Additionally, any car you lease should have a good interest rate. Otherwise, that high residual value and low monthly payment won't do you much good. However, you might not know what you're looking at when going over the contract and skip right past the interest rate information. This is because for leasing, the interest rate is called the lease factor.
With this information in mind, you can call a variety of dealerships to find out who offers the best lease factor. You don't want to have to pay more than you need to drive off the lot with a new car.
You'll also want to watch out for fees, as lease contracts tend to be riddled with them. Sometimes, all you have to do is ask to have some of these fees removed and they will be. Fees to look out for include an acquisition fee, a security deposit, and a disposition fee. They vary from dealership to dealership, so keep your eyes open.
Finally, look into how many repeat customers dealerships get. It's usually a sign of dissatisfaction when a customer fails to renew a lease or lease multiple cars through a dealership. This could be due to the car itself or the leasing contract; it's hard to say.
In any case, be diligent in finding out everything you can about a dealership, their cars and their leasing contracts before you set foot on site. You want to be prepared so you can ask the right questions, make the right requests, and get the best deals.