How to Lease a Car Cheap

Are you looking for a way to keep your new car payments low? If so, consider leasing an automobile. Leasing a car can save you money. On average, leases can lower car payments by $150 a month - and you're able to drive a new car every two to five years. However, leasing can become a financial burden. And anyone who considers leasing a vehicle should familiarize herself with the leasing process and strive to keep the costs low.

Things You'll Need

• Credit report Down payment

Instructions

1. Negotiate a lower interest rate. The interest rate you receive on the car lease determines your monthly payments. To cheaply lease a car, you'll need to acquire a good rate. Having excellent credit history is one way to get the best rate on the lease. Before applying for an auto lease, check your credit report and attempt to increase your score. Adding 20 or more points to your credit score can justify a lower rate. In turn, your monthly payments drop.

2. Extend the lease term. Automobile leases feature several options. You can lease the vehicle for two or three years and always drive the latest models; or keep a leased vehicle for four or five years. Shorter lease terms involve higher payments, whereas longer terms result in lower payments.

3. Apply for a lease with a down payment. Down payments are beneficial for two reasons. They lower the final lease price, which reduces your monthly payments. In addition, down payments generally justify a reduced interest rate, which can also reduce your monthly lease payments. If possible, save at least 10 percent of the lease price.

4. Stay within your allotted mileage. Leases are different from purchases. When you lease a vehicle, you don't own the car. Therefore, the dealership determines how many miles you can put on a leased car within a given year. On average, you're allowed between 12,000 and 15,000 miles a year. Stay within this range and you don't have to pay additional fees at the end of the lease. If you exceed your allotted mileage, the dealership will charge a fee (typically $0.02 per mile).

Resources

• Leasing Frequently Asked Questions
• Annual Credit Report - Free Copy of Your Report