How to Lease a Vehicle
Leasing a vehicle differs from buying one outright because the buyer does not keep the vehicle at the end of the payment term. The buyer does have the option of purchasing the vehicle at the end of the lease term. Many buyers instead choose to turn in the old vehicle and then lease a new one.
- Decide which vehicle you want to lease and negotiate the price with the car dealer. Finalize the price then meet with the dealer’s finance manager to discuss the terms of the lease. Apply for the lease with the dealer’s lending source and find out how long it will take to receive an approval.
- Negotiate the terms of the lease with the finance manager while waiting for the lender’s approval to come back. Find out the maximum number of miles you can drive the car during each year of the lease repayment. Offer to put more money down to lower the lease payment if the amount is too high for your budget.
- Switch to a vehicle with a lower price if the monthly lease payment amount is still too high. Choosing a vehicle with fewer luxury options or offering to drive fewer miles will also help to lower the monthly payment. Continue to negotiate the payment until you reach an acceptable amount.
- Walk away from the deal if the payment is still unaffordable. This may prompt the finance manager to consult with the sales manager to try and get you a lower price on the vehicle. The lower price will help to reduce the monthly lease payment and allow you to complete the purchase.
- Sign the paperwork with the finance manager and confirm the date of the first lease payment. Find out when you can expect to receive a payment book from the lender. Address any questions or concerns with the finance manager before you finish signing the papers.