GREENSBORO, N.C. — Buying a new car is EXPENSIVE, with the average price of a new car over $48,000! So, it’s no wonder leasing this year will account for 21% of new vehicle sales! And comparing buying a new car with a loan versus leasing a car will lower your bill by an average of $139 a month.
"Keep in mind that there are mileage restrictions and potential excess wear-and-tear charges that could come along with leasing," said Keith Barry, Consumer Reports Car Editor.
You can negotiate the vehicle’s overall price, which is also known as the capitalized cost in leasing, and that can significantly lower your monthly payments, so try to strike a deal that suits your budget!
NEGOTIATE:
The lease interest rate also called the money factor, which influences your overall payment.
The mileage allowance, if you anticipate driving more than the standard limit.
Maybe you are considering an EV?
“While the tax credit for buying an EV comes with lots of restrictions – where it’s built, how much it costs, where the battery comes from – all those go out the window if you lease," said Barry.
The dealer can claim the full 7500 dollars tax credit…so first negotiate your best price and then make sure that the dealer passes that on to you by taking it out of the overall price of the car!
And CR says to stay away from leasing a used car. You’ll encounter higher interest rates and limited manufacturer support. Plus, with the original warranty expired, you’re on the hook for repairing a car you will give back one day.