never leased a car... totally clueless

So within the next few months I think we're going to lease a new car. Probably a Nissan, Toyota or Honda. I've only finance cars, so I have no idea what to look for or how to know if im being taken advantage of... does anyone have any tips for a leasing newbie?

Re: never leased a car... totally clueless

All I can say is to make sure that you get GAAP insurance and total loss protection. Mine is added into my lease and it is from the bank that i have my lease with. The original quote the salesman gave me did NOT include this and I think it is VERY necessay (I was in an accident 2 weeks after I got the car and am covered with the GAAP).

Just be sure not to be pressured and when you speak with the finance person go over every little detail.

See what.if you need to pay to end the lease and have the car picked up. With my current lease 1 bank wanted to charge $800. THe one I am with now (Honda's own bank) I don't have a return fee.


ETA: This is my 2nd lease, for hte 1st 1 my dad negociated for me. THis one I was on my own and I was scared! I still feel like I was taken just not all the way.

Good luck

Message edited 10/21/2009 1:13:33 PM.

Re: never leased a car... totally clueless

Never put money down. You don't want to put your equity into something you do not own.

Some people will say to negotiate on the price of the vehicle. This is a good tactic if you think you might buy the vehicle out when your lease is over. Lower price equals a lower monthly payment. Go in with the invoice price from Edmunds.com. Other people will say you should negotiate on the monthly payment, which may be a good strategy if you know you will not be buying the vehicle out when the lease is over.

Check to see if there are fees at the end of your lease (return fee, balloon payment, etc.). My ILs leased a vehicle that had a balloon payment at the end and they didn't know it until after the fact.

If you put a lot of mileage on your vehicles you may want to look into 15k miles per year instead of the standard 12k. You should also look into what kinds of "damages' (scratches, dents, etc) they will/will not charge you for at the end of the lease.

Also be clear on the number of months in your lease (36 months, 39 months...).

Have fun shopping!!!

Re: never leased a car... totally clueless

Don't put anything else down but title and tax. Also, its not a good idea to wrap this into your price so that you don't pay a dime, because you pay interest on this

Always negotiate the purchase price. That is how they base the per month payment.

Go to edmunds.com to see what the price of the car should be and use that as your guide to a fair price.

Getting an 09 model will save you a lot right now, because most lots already have 2010's on it.

Figure out what you are willing to spend and STICK TO IT!! Sometimes you have to go back a few times to get that price, never settle and pay more when you aren't willing to. They can be very pushy sometimes.

GL! And have fun! I love getting a new car

Re: never leased a car... totally clueless

Posted by HeatherRose

Don't put anything else down but title and tax. Also, its not a good idea to wrap this into your price so that you don't pay a dime, because you pay interest on this

Always negotiate the purchase price. That is how they base the per month payment.

Go to edmunds.com to see what the price of the car should be and use that as your guide to a fair price.

Getting an 09 model will save you a lot right now, because most lots already have 2010's on it.

Figure out what you are willing to spend and STICK TO IT!! Sometimes you have to go back a few times to get that price, never settle and pay more when you aren't willing to. They can be very pushy sometimes.

GL! And have fun! I love getting a new car

Re: never leased a car... totally clueless

go to edmunds.com and price the car out. whatever the invoice price is, try to negotiate for as close to that price as possible. DH got me an amazing car for peanuts compared to what it should lease for.

check both 36 and 39 month leases, sometimes one is better then the other. and check if they have a pull ahead program to get you into a newer car a few months before your lease runs out.

dont put any money down, only pay for tax and title.

don't show too much interest in the car, they start thinking you'll pay whatever they want.

if you're trading in a car, dont mention it right away. first work the deal, then drop the bomb so they cant up the price. and negoiate what they want to give you for the trade in.

ask what the money factor is on the lease, calculate that by 2,400 and that's what the interest rate on the lease is.

happy shopping!

Re: never leased a car... totally clueless

For some people this may be a no-brainer but for me it was not.. (it was my first time leasing also.. and actually.. my first car.. EVER)

Find out what your insurance rates will be on each vehicle you are looking at..

I was about to get a Subaru Imprezza for an awesome price per month until I called my insurance company and found out it's actually a "turbo" vehicle and the insurance rates were WAY higher than a Altima or Civic (which I ended up getting)

Re: never leased a car... totally clueless

Re: never leased a car... totally clueless

I agree with what the PP's said about insurance and not putting down anything.
Also make sure that when you pay the taxes you solely pay the taxes on the amount of months that you will be leasing the car for. A lot of dealers will try to make you pay for the whole tax of the car so that they can make a higher commission. If the car price is 24k and the lease price is 12k you will only pay tax on the 12k.

Message edited 10/22/2009 9:47:18 AM.

Re: never leased a car... totally clueless

Re: never leased a car... totally clueless

Posted by Blu-ize

Posted by MissRadiant

I agree with what the PP's said about insurance and not putting down anything.
Also make sure that when you pay the taxes you solely pay the taxes on the amount of months that you will be leasing the car for. A lot of dealers will try to make you pay for the whole tax of the car so that they can make a higher commission. If the car price is 24k and the lease price is 12k you will only pay tax on the 12k.

you only pay tax on the total of the payments.

Re: never leased a car... totally clueless

Re: never leased a car... totally clueless

Posted by MissRadiant

Posted by Blu-ize

Posted by MissRadiant

I agree with what the PP's said about insurance and not putting down anything.
Also make sure that when you pay the taxes you solely pay the taxes on the amount of months that you will be leasing the car for. A lot of dealers will try to make you pay for the whole tax of the car so that they can make a higher commission. If the car price is 24k and the lease price is 12k you will only pay tax on the 12k.

you only pay tax on the total of the payments.

That's what I meant. sorry
But when I got my lease, they tried to charge me tax on the full value of the car.