Simple strategies to help you save money on car leasing deals
Often you might wonder if it is better to buy a car or lease one. Both have their merits and demerits but in this case, it simply comes down to your driving requirements. Buying a car is a long term investment and an expensive one at that. On the other hand, leasing a vehicle for a fixed duration doesn’t pressurize you to commit to one car. You can switch vehicles and get a better offer with a new one. There are many ways you can save a few hundred bucks on car leasing deals. Check out these clever pay-off strategies. Paying more security deposit (refundable) There is a legal requirement to pay up a certain amount of money upfront as part of car leasing deals. This deposit, combined with the total value of monthly payments and interest, will make up the total cost of leasing the car. However, when you are willing to pay a higher amount for the deposit, the lease company will offer a better deal with reduced installments and a cheaper interest rate. In financial terms, this consolidation is known as the money factor. A lower money factor automatically reduces the cost of the overall lease. Paying for the lease upfront If you can afford to pay a major portion or even all of the lease upfront, you can get stellar car leasing deals from some of the most reputed companies.
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