We Really Need a Car. Are Car Payments Good Right Now?
How to get low payments on a car lease
It’s no secret that cars are expensive. A new car can easily set you back $30,000, and that’s before you even start making payments on it.
This is why many people today choose to lease their cars in order to spread the cost out over time. But the question becomes, is leasing a good idea right now? Short answer: YES — but mostly if you’re able to get low payments on said lease.
Leases are clearly going to cost more in the long-term, yet this is still a no-brainer for anyone who doesn’t want to burn a 5-figure hole in their wallet by buying a car outright.
Alright, let’s talk about the best ways to optimize a lease in this economy.
How to get low payments on a car lease
There are several ways to get a lower payment on a car lease, but here are some of the most popular ones:
Look for deals
Just like shopping at the bargain bin in your supermarket, car manufacturers often have special offers for car leases. In some instances, you can acquire a lease with high residual value or low-interest rates, and even a lower overall cost.
The reason why these types of promotions exist is that manufacturers want customers to buy new models so they can lease out last year's rides.
Go for a used car lease
Another great way to save money on your monthly payment is by leasing a used car instead of buying new.
This one’s self-explanatory too — yet many people are still unaware used cars are even offered as leases. Used car leases will have their depreciation reduced significantly (by up to 50%) and after a vehicle’s been on the market for three years most leases come at lower rates than if you were financing them.
Lower the mileage allowance
When you’re leasing a car, it pays to be aware of the fine print. One important thing that most people don’t realize is how much more expensive their lease will become if they drive over certain limitations — like 50 miles per day or 100 total for an adjusted driving period (which can sometimes last up until year three).
By sticking within these safer distances and avoiding any possible penalties at all costs; not only is your lease cheaper overall but there’s also time saved on gas money!
What to do with bad credit
You should always aim to have a good credit score before trying for the best lease offers. Most dealerships require you to be at least 620, but some may go up even higher than that! And if it’s below what most people consider as good scores (700 to 820) it can be much harder to land on an offer.
If you have bad or average credit, you may be wondering how you can improve your credit score fast. Luckily, there are a few things you can do to give your score a boost —
- One of the best things you can do is to make all of your payments on time. This includes both your monthly bills and any outstanding debts you may have. By doing this, you will show creditors that you are a reliable borrower and improve your chances of getting approved for new lines of credit in the future.
- Another great way to improve your credit score is to keep your credit card balances low. Creditors like to see that you are using your credit cards responsibly and not maxing them out every month. Try to keep your balances below 30% of your total credit limit to help improve your score.
- In addition, you should also try to avoid opening new lines of credit too often.
However, if all else fails and you’re in a bad credit situation for the long haul (like I was coming out of college) here’s what you can do.
Time of the year
At the end of the year, most dealers have the target to get rid of the maximum amount vehicles to make space for new ones. At this time, your low credit score might not be as important to the dealer, and this might be your chance to land on an offer.
Keep an eye on the advertisements
Stay in the know with car dealers. Because dealers are still accustomed to the old-fashioned way of doing things, they advertise mostly on radio and television. This makes it easy to miss ads and that’s why we here at Leasly have spotlighted many of the best offers online on our website.
Since credit requirements can often be flexible when it comes to deals, there’s always room for savings without being perfect.
Offer a good down payment
If you’re looking for an affordable car lease with bad credit, the best way is by making a down payment. In many cases this will help get your rates! And if you can’t enough money then try offering more than what the dealeris requiring. That never hurts!
Aim for a less fancy vehicle
I hear that if your credit score is low then the only option left for a purchase might be an old banger with some rust and gun holes on it.
We’re joking, of course.
Thankfully even with average credit, you can still get a modern car as only vehicles released within the last four years. But please temper your expectations. You’re not going to be driving away with a new Beamer, Benz, or Bentley.
Improve your credit score
All this being said, you have to improve your credit score. It’s not only a prudent move for getting the best deal on a car but also for a house too! You might land on a good deal once in a while with a low credit score, but that won’t be the case every time.
Is leasing a good option for average-earning families?
Car leasing can be a great option for the average-earning family. Even if you don’t meet all of the qualifications we talked about, like having a pitch perfect credit score, there are always workarounds.
And remember, leasing is a much more affordable option than buying a car if you can get the right payment plan. It’s better than incinerating your savings, especially if it’s on a depreciating asset like a car.
Meanwhile, why not try Leasly and see how much money you can save?
