How To Get The Best Car Leasing Deal


Leasing a car rather than purchasing one can prove to be much more cost-effective and is an option being chosen by a growing number of people. Some people like to change their cars every so often and others use them for their business. Some chose to purchase the car at the end of the lease as an option.

However, there a few ways to make sure that you get the very best car leasing deal for you:

  •  Commit To The Right Lease Length, Longer Can Be Cheaper

Lease companies will offer you their lease cars for specific amounts of time. Over commit and you could be left with a car that you don’t want, under commit and you could be handing your car back before you are ready.

Car leasing tends to vary around two years to five years although different terms are available. Make sure that you commit to the amount of time best for you but do keep in mind that in general, the longer you keep the car, the more cost-effective it will be.

Because an advanced payment will be required, the longer you keep the lease car, the further that initial payment will stretch. For example, if you have to pay 6 months up front and hand the car back after two years and pay a new initial payment, then that is less cost efficient than paying 6 months up front and then keeping the car for four years. On top of this, longer commitments tend to get slightly lower monthly payments.

  • Look For The Offers, You’ll Be Surprised At What You Can Get

Car manufacturers tend to use leasing as a way of getting their cars on the road and clearing stock they can’t shift quickly. They also use it as a way to hit their monthly, quarterly and annual targets and this means that special offers can always be just around the corner.

Try using this to your advantage and search or even wait for the next special offer. It is often possible to get a real bargain.

  • Check The Fees, They’ll Affect Your Overall Cost

When using car leasing as a way to secure your next car, you should always check all the fees and costs involved and come up with a total figure. This total figure is the real cost of your car lease.

In other words, don’t always trust that a lower monthly payment is the best deal if it happens to require a larger initial payment or has lots of hidden charges and fees.  Simply add up every single penny involved in your car lease and use this total to compare to other deals.

Guest Contribution: This was a guest contribution post.

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Mr. CBB
I’m from the UK and now a recent permanent resident in Canada. I bought my first house at the age of 21 after University then my second at the age of 24. I’ve always been fascinated with personal finance, savings, learning to make money and watch it grow while combating debts along the way. Canadian Budget Binder is a place where I get to share my experiences with personal finance and learn about yours along the way. I hope you stick around and check me out on Twitter, Facebook and Pinterest where I am active on all social media sites. Cheers, Mr.CBB
Mr. CBB
Mr. CBB

Comments

  1. John S @ Frugal Rules says:

    We looked at leasing when we bought our last car a few years ago. After doing the math, it just did not work out for us as it would have cost us more than buying a car. I do see the benefit of leasing, especially if you’re like a new car every few years.

  2. My aunt recently signed up for a lease and it made fairly decent sense for her. However, for most (unless you drive a very minimal distance each day) it just doesn’t make sense. I’d personally never rent a car (i.e. lease) with how much I drive.

  3. My parents love to lease their cars. Like you mentioned they are the people who like to trade up after a few years. I like to let a car run until about 100,000 miles before I get a new one.

  4. It’s very tax effective to lease a car in the UK!

    • It is, but unfortunately there are quite strict mileage limits… My return trip to work is 65 miles per day and it puts me well over the annual limit. Do you lease a car?

      • Canadianbudgetbinder says:

        I don’t personally lease a car but my sister in law does and looking back she would rather she didn’t. She did it for the wrong reasons instead of the right I guess. It’s all about personal choice and situation and yes the mileage is important. It’s so important that asking all the right questions before you lease will help with decision making. I purchased my vehicle for cash $15K

  5. Christine Weadick says:

    Never really thought about leasing but I think my younger sister-in-law has. We usually drive an older vehicle and keep it in good shape as much as we can. Currently that means a 1998 Sierra pick up truck, not great for gas but it’s paid for in full. Interesting article and certainly worth some thought…

  6. I hope to never need a lease, but would certainly consider all fees if I did.

  7. Canadian Performer's Money says:

    People don’t know you can also take over someone else’s lease. I did that and think it’s a great idea. Go on craigslist and find someone desperate to get out of their lease. Often they will pay you on top of it!

    I wanted a Nissan Versa, so I went on craigslist and found a guy who wanted out of his 4 year lease after only 2 years. He paid the downpayment and made 2 years worth of payments, I just took over from there and made the next 2 years worth of payments. In the end, I ended up buying out the car and own it outright today. The amount of money the original own put into the car made it a good deal for me.

    • That’s a good point Troy and I have seen it before where people are looking for someone to take over their lease. Smart idea.. I might look into that next time I want to buy a vehicle. THanks for sharing that. Mr.CBB

  8. I have leased in the past because being self employed allows better tax deduction in my case I have also taken over leases that others wanted out of early. Example 1 yr old Toyota Rav. 21,000 km 2ith 3 yr remaining. Bought out the lease at maturity for residual of 14, 200 plus tax and my wife is driving it. Now 6 yrs old with only 116,00km and in great shape and been offered 12.000 for it recently. Check out a good related blog post at http://www.boomerandecho.com/why-i-bought-out-my-car-lease/

    • Canadianbudgetbinder says:

      Ya my mate Troy posted a comment about taking over a lease something I had never thought of. For some that have a business it makes more sense I agree. I’ll definitely be on the lookout when I’m looking to buy again for those that want out. Cheers mate Mr.CBB

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