3 Musts To Consider Before Leasing A Vehicle

Leasing A Vehicle

Some people want to drive their car until it stops completely; other consumers want to have the newest, most innovative, and coolest car on the market and upgrade every couple of years. If you aren’t a millionaire, it might be more a matter of what you can afford than a matter of what you want. However, if you’re in the market for a car and you don’t want to buy a used one that might have been someone else’s headache but you can’t afford to buy new, then leasing may be a happy medium.

Leasing isn’t for everyone, but if you even want to consider it, then you have to first ensure that you can even do it. There are certain requirements you must have, to lease a new or used car, and the main one revolves around  your “credit score.” If you are someone who can’t afford new, or you don’t have a good enough credit score to borrow the money, there are vehicle leasing companies which might provide you an alternative.

Leasing A Vehicle
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To find out if you are a candidate for leasing a vehicle, there are three things that you must know and factor into the equation. These three things will determine if leasing is for you.

What is your credit score?

Your credit score is not only the key to buying a new car, but also to leasing one. The higher your credit rating, the better your dealer lease will be. Before you consider leasing a car, it is important to know where your credit rating falls. If it is really low, you might want to wait to lease a car until you have increased it a bit. Going through your credit history to find any discrepancies can help to increase your score and also lower your lease rate substantially.

There is also going to be a minimum credit score that you will need before you can qualify to lease a car. That will vary depending on the dealership and the manufacturer of the car. If your score is lower than 700, you will typically not be able to lease a new car of any type. Finding out your score is an essential first step.

Know how much you have to budget

When you lease a car, you have to know what your income is versus what you pay in bills per month. Often, people underestimate their monthly costs, and that can lead to disaster if you overestimate how much you can afford for leasing a car. Usually, a lease will last for two to three years; before you lock yourself in, make sure that you have the income to support it for the long term. Remember that if you lease a car, at the end of the lease, you will have the option to trade it in or buy it. The monthly payments, whatever they are, will not affect the vehicle’s value when you trade it in or decide to purchase it.

Shop for both the car and the lease

Don’t make the mistake of thinking that dealerships are all going to charge you the same amount for your lease. Just like you can negotiate the price of a car, you can usually haggle with a leasing company for the best interest rate and monthly payment. Shopping for the right lease is just as important as finding the right car. It might take some time, but in the end it could save you a substantial amount of money.

There are also instances when you can take over someone else’s lease, which will save you money monthly; however, it won’t affect what the car is worth when you trade it in or purchase it.

Leasing is an excellent option for someone who wants a new car but doesn’t want the commitment or doesn’t have the money to purchase a new car. Before you consider leasing, make sure to do your homework and find the best deal prior to looking around — and definitely before you sign on any dotted line.

Jasper has been an enthusiast of the automotive and IT industries since the age of 16. He independently writes on the auto industry's recent happenings.