How to Lease a Luxury Car
Leasing is a good way to gain the use of a more expensive automobile than what you might be able to afford if financing the entire cost of the automobile. Luxury cars are the perfect choice for a high-end, lower-cost car lease, but you should know the facts about leasing luxury cars before you make a decision. A lease is almost impossible to get out of without stiff penalties, so you want to make sure your decision is the correct one.
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Instructions
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1
Research cars online and narrow down the lines of luxury cars to those that interest you the most. Check the sticker price of the cars in the Kelly Blue Book. (See Resources.)
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2
Research luxury car dealerships online and see if the dealership is offering rebates or special financing for any car you are interested in. Narrow your list down some more.
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Visit the car dealerships to test drive the cars on your list. Simply because a car is in the luxury class doesn't necessarily mean it will suit you. Test drive everything and eliminate those cars you do not feel suit you.
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4
Ask the salesman about maintenance on the car. Some automobile manufacturers cover routine maintenance for the first three years. That is a large savings on a luxury car and should be factored into the overall cost of the lease. Talk about selling price and see how much the salesman can lower the price on the car.
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Speak to the finance manager about the estimated cost of the lease. You need the selling price of the car, the term of the lease, the residual value of the car, an interest rate and estimated monthly payment. Do not give the finance manager permission to run your credit score. You should have checked it already, and he can provide you with an estimate based on your word.
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Go home and compare the paperwork on the automobiles still on your list after the test drive. Eliminate those that are out of your price range. Check the math on the monthly payments given to ensure the dealership is not adding costs into the lease that you cannot see. To do this, subtract the residual value from the selling price and add tax to get the net financed amount on the car. Check online for an amortization schedule and put in the net financed amount for the car, the lease term and the interest rate. (See Reference 2.) Make sure that the calculator comes back with something close to the estimated payment.
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Eliminate dealerships whose numbers don't add up. You don't want to get locked into a shady contract with shady people. Check the remaining cars on your list and make a selection. Call the salesman and arrange for a time to come in, select your car and complete the paperwork.
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Tips & Warnings
Never buy or lease a car the day you look at it. The salesman is likely to call and offer you a better deal in the day or two following your visit.
If possible, you should always lease luxury cars from the dealership because luxury car dealerships often provide loaner cars for you to drive when your car is in for repair.
All repairs on cars should be made at the car dealership in order to maintain your warranty.
