Leasing a car and finding the best auto loan calculator Canada has to offer isn’t easy. While there are lots of options out there, not all of them are going to best suit your needs.
Of course, when it comes to leasing a car from a dealer, you want to make sure you’re getting the best deal. However, the dealer is trying to do the same thing.
When it comes to car lease dealers, the ball’s typically in their court. Because they know everything about leasing a car to the customer, they usually have the upper hand. Therefore, it pays to know some car leasing secrets before you engage with them. Let’s take a look.
1. Negotiating Price
When purchasing a new car, you negotiate with your dealer for a better price—so why not try the same thing when leasing a car? Focus on trying to lower your monthly payments, as this can help keep the cost down overall.
2. The Low Payment Trap
When negotiating with the dealer, make sure to steer clear of the low payment trap. This is when the dealer may lower the monthly payment but increase the down payment when calculating the overall cost. Your dealer may also increase the term of your lease. So, while it may look like you’re paying less per month on paper, in the end, you’re going to end up spending more.
3. Dealer’s Don’t Do The Leasing
You may not be aware that dealers themselves don’t actually lease the cars—they do it on behalf of the manufacturer. This means that once the dealer gets paid, they wash their hands of the situation. It’s important to be aware of this because it means that the dealer can only help you with one part of the loan—the price. They’re not going to be able to help you with other crucial aspects of leasing a car, including figuring out the financing, as well as any additional costs you could be hit with further down the line.
4. Not The Same As Renting
Dealers take advantage of the customers’ lack of knowledge at times by not communicating the difference between leasing and renting. Leasing is different from renting because it involves financing, a lower monthly payment, and the customer returning the car at the end of the lease. A lease agreement generally cannot be changed once it’s been signed, so be wary of this.
5. Make A Big Down Payment
Making a sizeable down payment, otherwise known as a “cap cost reduction”, is going to keep those monthly payments low. Fronting up as much of a down payment as you can initially is going to reduce any finance costs you may run into in the future, too.
6. Avoid Monthly Payments Altogether
While putting down a lot upfront is recommended, it’s even better to pay for your car lease in cash at the beginning. This could eradicate the need for monthly payments completely.
It’s also worth noting that having all the cash to pay upfront for your car lease is not going to help you avoid finance charges. But, you may be able to get a lower interest rate on the overall loan if you do produce the cash upfront.
7. It’s Essential To Be Covered
What a dealer may not tell you is that your contract should state you are covered for all your lease pay-offs, whether the car is written off in an accident or stolen. While most contracts have this clause, not all of them do. So, it’s important to confirm this before signing. Historically, this type of coverage was included for free, but many car leasing companies are now charging for it.
8. Go Into Detail
It’s the job of the dealer to talk about the general leasing terms with you, which will include things like monthly payments, down payment, and how long the life of your lease will be. However, they’re not obligated to go into detail regarding the contract and any terms and conditions. This could include important things like restrictions on mileage, taxes, and conditions of early termination. This is why it’s essential that you read through your contract so that you know exactly what you’re paying for.
9. Be Wary Of Trade-Ins
If you’ve already leased a car, there’s a good chance that the company will be in touch with “exclusive” offers. One of these offers may be an early lease pay-off in return for leasing you another car. While this can often be a legitimate offer which lets you trade in your old vehicle for a newer model, this can also be a deceptive way for the dealer to make more money from you. If the amount they’re asking for you to pay for the transaction is more than the market value of the car, then you’re being taken advantage of.
LendingArch: Your Auto Payment Calculator
When it comes to finding the best car loan calculator Canada has to offer, LendingArch is leading the way! Nobody wants to deal with a dodgy dealer or a car lease that’s going to end up costing more than what’s in the budget. With LendingArch, you can find some of the best car leasing companies through our sophisticated online car payment calculator. The best part? We cater to everyone. This means that it doesn’t matter what your credit history looks like—LendingArch can connect you with the right car leasing companies to suit your needs.
Don’t put yourself out there and let a car leasing company with a bad reputation take advantage of you. When you’ve got a budget for leasing a car, you want to stick to it. Through LendingArch’s online car loan calculator, you can be connected directly to every car leasing company that will accommodate your budget, so you don’t have to go above and beyond to lease a vehicle. Check out LendingArch’s seamless car loan calculator today and know that you’re in safe hands.