Leasing a car provides a variety of benefits that make this an attractive option for many customers For example, the best lease options can make it possible to get into a vehicle that has many features that could otherwise be unaffordable. Additional features have to be weighed against the total cost of operating the vehicle in order to determine if this is the best car to lease for your situation.
Negotiating the Lease Contract
The monthly payment is an important formula to understand so that you can adequately negotiate the total cost of the lease. In addition to the monthly payment, you will be responsible for paying the insurance, which is often required at the level of full coverage. The cost of borrowing is also determined by the dealer or financial institution, and it may not be negotiable. However, you can always attempt to negotiate the cost of borrowing against the amount of the down payment, which is a significant point of leverage.
The depreciation of the car will significantly affect the total value of the lease contract. This is true even at the moment the car leaves the lot. In addition to the immediate depreciation of the vehicle, the rate of depreciation is also different from one model to another. Calculating the residual value of the vehicle at the end of the leasing period is the best way to understand this variable amount. High residual values are good for the dealer, so they will lower your monthly payment. Low residual values are good for the customer if you are planning to purchase the vehicle at the end of the contract.
Best Cars to Lease
These variables must all be taken into account when you are deciding on a specific vehicle to lease. Each make and model may be subjected to a down payment, mileage restrictions, security deposit, acquisition fee, disposition fee, insurance minimums and the cost of borrowing. Take all of these variables into account when deciding on a specific lease contract.
Some examples of the best cars to lease are listed here based on these terms:
- Down payment lower than $200 per month
- Low monthly payment
- Length of the lease contract
Although the best cars to lease will always be a matter of personal preference and needs, two of the most robust lease deals are listed here:
- The Toyota Corolla can be leased for 24 to 36 months at $159 per month and less than $3,000 down payment. The residual value of this make and model tends to be high, so it is a good choice for consumers who want to return the vehicle to the dealer after the expiration of the contract. However, the reliability of this model also makes it a good option for purchase in an open-ended lease.
- The Honda Civic sedan is also known for reliable performance, good gas mileage and a high residual value. It can be leased for $180 per month for a 36-month period and only $2,000 down payment, which is due at the lease signing stage of the contract. Always try to negotiate for the best terms possible, especially if you can afford a higher down payment.
Residual Value of Leasing, Operating Costs
Leasing involves a low monthly payment and a nominal down payment, and this makes it appear to be an affordable option on the surface. However, you need to account for other costs as well in order to find the best cars to lease. Mileage restrictions and insurance requirements can also affect the total cost of operation, which may offset the benefits of the low monthly payment.
Finally, each dealer provides a different set of options for leasing, but they will not readily admit that some of these items are negotiable. To fine the best cars for leasing, you need to understand all of the components that make up the leasing contract, and evaluate your personal mileage and budget requirements against the terms of the contract. This includes the maintenance costs of the vehicle and any repairs that are necessary to avoid penalties at the end of the contract.