Finding a good deal on a car leasing is a matter of being informed and looking around. Your first decision is to pick one or more manufacturers and corresponding models. Once this decision has been made, you can begin scouring the market. The first place to look for a good deal is by examining the lease end residual as a percentage of the manufacturer’s suggested retail price. Vehicles with a ratio of 60 percent will certainly be better for the buyer than one with 40 or less. In consideration, the manufacturer of the car also comes into consideration. Higher end foreign cars such as BMW, Mercedes, Porsche, Lexus, and even Acura/Honda/Toyota usually have higher than Chevy, Ford, Dodge, etc. Money factor is another large consideration. Money factor is APR divided by 2400. In this case, a buyer should be on the lookout for an APR or corresponding Money Factor that is below the national average rate.
Another consideration is the discounted car leasing price. This is the actual lease price after the amount that the dealer has contributed. Also, sometimes the manufacturer of the vehicle will offer rebates or other buying incentives which reduce the effective price. The closer to dealer invoice price (this is essentially the “cost” of the vehicle), the better the deal you’re receiving. Overall, the best deals are ones that combine a high residual value with a heavily discounted price and low money factor (or corresponding APR). This allows the buyer to receive a relatively low payment monthly/yearly. Often, dealers looking to become more competitive and receive more traffic advertise deals in which they break even or lose money, all in the interest of moving more inventory. The customer can benefit from the dealer's requirement to move inventory and turn over cars to bring the new ones onto the lot.
How does one find such a good deal? The answer is car leasing comparison. Take a look at how a certain year and model from a manufacturer is going on the market in your area or across the country. If you see a certain deal, and it is later in the calendar year, you should be able to beat that deal! Remember that dealers need to get rid of inventory. The buyer is always able to negotiate and see what the dealer has to offer, so don’t hesitate to contact a local dealer if you see something you like.
