Steps to Leasing a Car

Leasing a car can be convenient.

Leasing a car allows you to drive a new car but pay lower monthly payments than if you bought the car. It allows you to drive a new or nearly new car almost constantly. Think of it like renting an apartment.

Instructions

1. Estimate the cost. Look at the market value of the vehicle or vehicles that you prefer. Then estimate the monthly payments from the market value. An online auto loan calculator may help. Keep in mind a price range that fits your budget. Do not consider vehicles that have estimates you cannot afford.

2. Look into new vehicles. Decide what make, model, features and color you prefer. Getting a good deal on a leased car requires having some flexibility, but there should be a few preferred options in mind.

3. Call or email a variety of managers at local dealerships. Ask for a quote of the lease prices on your preferred vehicle. Record each quote by dealership to track your options. This will give a price range for the car.

4. Make a decision about the car dealership and specific vehicle to lease.

5. Go to the dealership and test drive the car. Bring paperwork like driver's license, proof of insurance and current vehicle registration.

6. Negotiate the lease price. It is easier to negotiate when there is a surplus of a certain car than when there are only a few. Ask the dealer to match the lowest quoted price for the vehicle and call other dealers to see if any will offer a lower price.

7. Read and sign the paperwork. Reading is especially important to avoid unexpected charges for added items that are unnecessary or unwanted. When the contract fits all of the requirements, and does not have unwanted extras, sign the paperwork.

Tips & Warnings

• Gap insurance is important with leased vehicles. It makes up for any charges that the lease company applies during accidents or when a vehicle is stolen that a regular car insurance policy might not cover.

• Be careful not to exceed mileage limits when leasing a vehicle. The mileage limits will be in the paperwork.

References

• Edmunds: 10 Steps to Leasing a New Car