I am new to leasing since always bought a used car by paying cash but recently decided to go for a new car to avoid any hassles of dealing with old car. Lease is looking a bit complicated so I’ve few questions
When dealers advertised a low payment, it’s effectively paying your monthly payment in advance. Can you incentives by paying entire term amount in one go to improve the offer ?
If I need to score a great deal I should look at highest residual because effectively you’re paying the lowest depreciation
Any car that you can lease under .8% is a great deal. Is there any site where I can see the lowest % lease amount/MSRP ?
Is it possible to lease a pre-owned car too like 2-3 years old which still have all the warranty etc.
There’s a lot of moving parts to a great deal on a lease but the most important one is the delta between residual value and your sale price. The closer the gap, the less you pay.
This is how in certain situations a 24mo lease ends up being cheaper than a 30, 36 or 39mo lease when incentives are the same throughout and residuals increase accordingly.
No, used car leases are not common(doable but usually not good). Manufactures want to keep factories going and move units, hence subsidized leases/financing to move new units.
Yes but be aware that sometimes a dealer/manufacturer/finance co may inflate the residual value to make a better deal. This sounds good for the lease monthly price but could bite you back if have to buy the car back for any reason: excess mileage/wear and tear, other damage, financial situation changes, you have to move out of the country, etc. It could also make it harder to transfer the lease to another party. These situations are not common but they do happen.
It is often possible to pay your whole lease in advance to save some money, this is called a “one pay” lease - they are becoming more common. Usually you get a better money factor and can end up costing you less. You can also put down extra security deposits (MSDs) to get you a better lease deal. Note that one pay leases can be risky if you total the car or it gets stolen before the lease is over. The car belongs to the lease company so the insurance will pay the car company for the balance of what is owed. In this case you could be out all the money you paid in advance.
BMW offers “executive demo” and other “used” leases. I leased a Z4 once that had 10K miles and 1 year old for a nice discount. You don’t get 50% monthly payments on used leases though, the discount is MUCH less than that. Another way to go is to transfer a lease from another party, this is pretty common but, in this case you won’t get a discount because you are just assuming their terms for the remainder of the lease.
Trust me I understand fart cars, but those are really new cars(haven’t been punched). So yeah they are used in the sense of the law, but not as far as the manufacturer is concerned they are new, but probably above the scope of the OP’s post
