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Thursday, April 24, 2014

Simple Steps to Get the Lowest Monthly Payments on a Car Lease

If you happen to be thinking about leasing your next automobile, then there are two things that you need to consider:

1. The future resale value of the vehicle will determine the amount of your monthly lease payments. This is also called the vehicle residual value. This value will depend on the vehicle that you want. Some vehicles have a high resale value, and these types of cars will always give you low monthly payments. Some examples include new Toyota vehicles and new Honda automobiles.

In regards to the residual value, the 2012 Jeep Wrangler gets the high honors from KBB.com. It was rated as the vehicle with the highest residual value of 68% for 36 months. The Toyota FJ Cruiser comes in second place with a predicted residual value of 67% after 36 months.

2. When talking about leasing, people expect to pay nothing upfront. Of course, if you are on a tight budget, you can always take advantage of $0 down payment lease offers. But making a small down payment is essential if you want lower monthly payments, so you should always take this into consideration.

Simple Steps to Get the Lowest Monthly Payments on a Car Lease

Step 1: Fix your credit score. If you have bad credit, you will get higher interest rates, and it will be difficult to reduce the monthly payments on your lease. Keep in mind that special lease offers with $0 down are only available for people with a high FICO score.

Step 2: Negotiate the final asking price before talking about anything else. This is also called the lease price, or simply said, the invoice price of the vehicle.

Step 3: Make a down payment. Remember that plunking at least $1,000 or $2,000 on your lease will lower your monthly payments. Save some cash before leasing a new vehicle so you can reap long term benefits.

Step 4: Ask for available incentives. Factory-to-dealer incentives and customer cash offers will help reduce your monthly lease payments. Remember that anything that affects the final selling price of the vehicle will adversely affect your monthly payments.

Don’t forget to shop around. Some dealerships will offer more incentives, while some dealerships will offer a lower vehicle price.

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