5 Tips for Leasing a Luxury Car Like a Pro
For a long time, getting behind the wheel of a luxurious car meant parting with a huge amount of money. However, as luxury car lease terms became better, more people were able to afford posh rides.
With leasing, you can experience the thrill of owning a luxury car for a few months or years. Of course, you may be sad to part ways with the vehicle at the end of the lease period, but owning it will be worth it.
But how can you lease a luxury car like a pro and get an excellent deal? It all boils down to shopping for offers and using wise strategies. You’ll save a few bucks on the downpayment and monthly payments. Here are five tips for leasing a luxury car like a pro.
Make Multiple Security Deposits
You can make multiple security deposits for a luxury car if you have the money. It reduces the interest rate (money factor) and your monthly payments. Most lessors will see that you are committed and give you a better deal.
However, not all dealerships offer such subsidies, so be sure to ask around and do your research. Also, this initiative will be irrational if the money factor is already low enough. In such a scenario, save your money and only pay the first security deposit.
2. Take the Single-Pay Lease Route
A single-pay lease is different from a monthly payment lease, you pay the whole amount as a single payment. The lessor may scrape off the interest or reduce it, saving you a significant amount of money.
A one-time payment also increases your chances of being approved for the lease. However, you need to gauge whether the single-pay lease makes sense monetarily before committing. Consult the lessor to know how much you’ll save with a one-pay lease. Additionally, ask if you’ll get a refund if the car is totaled or if you terminate the lease.
You can also use a car lease calculator to estimate the capitalized cost, money factor, residual value, depreciation rate, and monthly payment and make an informed decision.
3. Month-to-Month Lease Extension Strategy
If your lease term is over and you want to hang on to the car much longer, use the month-to-month lease extension strategy. Your monthly payments and mileage caps won’t change. Most lessors will agree to extend your lease but talk to yours just to be sure.
4. Look for Lease Takeovers
Lessors impose penalties and additional fees for terminating a lease early. You can avoid these costs by looking for a lease takeover. You will save money by paying less in penalties. A lease takeover also removes the burden from you when you can no longer afford the monthly payments.
5. Request for a Customized Mileage
Why get a luxury car if you cannot drive it as much as you please? To avoid exceeding the mileage and accumulating penalties, negotiate a customized mileage for the lease term. For instance, ask if you can get a deal for a high mileage of 20,000 miles instead of being restricted to 12,000 or 15,000 miles a year. A customized mileage may be cheaper than regular mileage.