Car Leasing Insider Strategies

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Car leasing is great for people looking for convenience and flexibility who want to drive the latest model of car and enjoy the latest tech. But with record-high prices and higher interest rates, it's best to know these insider strategies before you sign. According to Edmunds, on a typical three-year auto loan, you are likely to pay $44 more per month than if you had purchased a car a few years ago. With the average auto price being around $36,500, nearly half of consumers are considering leasing over purchasing a vehicle.
 
Though leases let you get into a new car with lower monthly payments compared to purchasing, even leasing may be moving out of the price range for many buyers. The average lease payment today is $487. So, what do you do?

Flexibility

You may be unaware of several leasing tactics that can add more convenience and flexibility to your life and even save you some money. Please note that not all of these options are available for all brands of cars. If these leasing tactics are of interest to you, call a Lithia Motors dealership near you and speak to one of our finance offers. 

With over 75 years of experience in personal transportation options and over 270 auto dealerships from coast-to-coast, we've got the answers for all your car leasing questions. We can customize the perfect lease for you.

Leasing Tactics to Save you Money

Some leasing companies and lenders will allow you to pay for the entire lease up front, saving you significant money on interest costs. Known as a single-pay lease, it is great for people with no credit history to help build credit. Plus, you can use your trade-in as a way to secure funds for this one-pay lease. Contact your lender and ask them how much you would save by paying up front. You can get an instant cash offer on your trade-in at Driveway. Your used car might be worth more than you think. Contact Driveway here.
 
A security deposit is usually required in most car lease contracts. It is slightly more than one monthly payment. In leasing terminology, the interest rate is known as the money factor or lease fee. A lower money factor means you'll pay less per month and will lower the cost over the length of the lease.

Some leasing companies will reduce the money factor if you agree to pay two, fully refundable security deposits at the beginning of the lease. You save over the long haul and get your deposit money back at the end of the lease. It is definitely worth asking your finance officer if the lease company you are working with accepts multiple security deposits.
Another thing that most people aren't aware of is the ability to extend your car lease and go month-to-month. Why would you do this? Let's say that the lease on your car is coming to an end and you aren't sure if you want to lease another car, purchase a new car, or buy a certified pre-owned car. But the deadline for returning your lease car is looming. What to do? Ask your leasing company to extend your lease. This can be done in month-to-month extensions, or for three- to six-month periods.
 
Want to get out of your car lease early? You could have someone simply take over your lease and you can walk away without any termination fees. It is possible to transfer around 80 percent of car leases. Companies such as LeaseTrader and Swapalease will post your car and find someone to take over the lease and walk you through the paperwork.

*Early lease termination and additional wear and tear fees may apply.
When people lease a car, they are generally focused on the monthly payment and forget that leasing is like buying when it comes to the sticker price of the car. By negotiating for a lower price up front, you'll lower your monthly payment. Get the best price you can on the vehicle before working out the details of your lease contract.
Gap Insurance covers you in the event your lease car is stolen or the vehicle is totaled in an accident. Without it, you could owe thousands of dollars and your standard auto insurance might not cover the entire debt. This could be one time when spending the extra money is well worth it.
Let Lithia Help
If you have questions about car leasing, we have answers. Contact the Lithia Motors dealership near you here.