We are always looking for cheaper ways to purchase a car. If you are looking at leasing a car, but aren’t sure if you could afford the monthly payments, we have a few suggestions as to how you can lower those lease payments.
When it comes to leasing a car, the payments are likely to be cheaper than car finance payments, but there is nothing wrong with wanting them to be cheaper. This is especially helpful for those of you considering bad credit car leasing.
Choose a car with high residual value
Depreciation is one of the biggest obstacles car owners face when it comes to selling or part exchanging their current car for a new one. With leasing, it shouldn’t be a problem because you are handing the car back to the leasing company at the end of the agreement. However, because the leasing company has to sell the car after it has been returned, they ensure the cost is levelled across your monthly payments. In fact, most of your leasing payments go towards paying off the depreciation on your car over the lease period.
If you choose a car that doesn’t dramatically depreciate and keeps a high residual value, then your monthly payments will be lower. It will hold its value better and therefore you are not paying off a large amount of depreciation.
Choose a used car
Carrying on with that train of thought, if the cost of leasing is based on how much a car will depreciate, why not consider getting a car that has already depreciated. A used car will have lower monthly costs because, after three years, the depreciation rate on cars slows down.
There are obvious risks that with an older, used car, there will be an increased cost in maintenance and repair costs. However, if you have zero issues for the agreed period, you will simply be paying low monthly costs. This could be well worth the risk when compared to the monthly amounts on newer cars.
Find that special lease deal
As with many things in life, the best time to get them is on a special deal. The same goes for a car lease deal. If you want to get the lowest lease payments, get a car whilst it is on offer. These offers can pop up at multiple times.
If a car is about to be put out of production or a new model is being launched, the current model will usually be offered up on a special deal by most dealerships for its final few months. Dealerships also offer monthly deals on a selection of cars that change every month, so if you are tempted by a certain car, keep an eye out and it may be available on special offer. Dealerships also have excess stock of certain cars that need clearing. They aim to do this by offering these cars on special offer for a limited time.
If you have a chance, take advantage of any of these possibilities and find your car on a special offer. It will dramatically lower your monthly payments, allowing you to, in some circumstances, to afford a car that you may have otherwise thought was beyond your budget.
Lower your mileage allowance
When dealerships total up how much you will pay on your monthly payments for your lease, your mileage allowance is a major factor. The higher your allowance, the higher your payments. This is because the more miles you drive, the more value depreciates off your car. The less you drive, the higher your car’s residual value with remain.
The majority of leasing deals begin with mileage allowances as low as 5,000 miles a year. This gives you plenty of flexibility when it comes to deciding how many miles you will need to drive annually. The average for most people is between 10-12,000 miles a year. Work out how many miles you will drive a year so you are getting value for money. There is no point taking out a lease deal with more mileage than you are likely to travel and spend more money than you would otherwise need to pay.
We already offer great cheap car lease deals on a variety of great cars. But you can still get those payments lower by following these tips and tricks. If you are interested in any of the cars we offer and know your budget, then contact us and out staff will do the rest.