Car Lease Calculator – 5 Common Mistakes To Avoid!
Say you are in the market for a new vehicle, but you are unsure how you want to finance it. As you weigh leasing vs buying a car here are some tips to help you in the selection process.
The most important factor will be your purpose for the vehicle. If you need something for a few years and don’t want to be locked into a long-term commitment then a car lease will be the right route for you.
As you research you’ll notice there are many car lease specials. It’s important you compare between different brands to see what would be the best fit for you. For instance, comparing Mercedes lease deals to Hyundai lease deals will give you an idea of what you can receive from each brand and what your monthly payments may look like.
Along with comparison shopping, another great tool to help you in this process is a car lease calculator. As with any tool, it can be easy to make mistakes so here are five of the biggest blunders to avoid.
1. The first is not knowing what all is involved when you calculate your payment. When you use a car lease calculator it’s going to ask several factors like sales price, title and registration, down payment or trade appraisal, and lease components like the term, residual value, acquisition fee and interest rate. If you do not know each of these before hand then using a car lease calculator will only give you a ballpark of what you might pay, not an exact amount.
2. Another mistake is using a bad calculator. As there are many online you will want to find one that takes many factors into account, not just several. One of the best ones you can use is from Edmunds, as it takes everything into account to ensure you have a more accurate result.
3. Not knowing your credit score is another bad mistake. Your credit history will determine much of your lease terms including your interest rate and down payment. If you have a great score it’s likely you will qualify for the best rates whereas if you have a poor score then you will have to pay more for the lease.
4. Another common error is not factoring in the correct value of your trade in. If you do not have the correct value when you go to use the car lease calculator than it will not give you the correct monthly payment amount. There are many websites like Kelly Blue Book that can give you a ballpark of what your car is worth. For the best results, stop by your dealership to get an appraisal.
5. Lastly, using this tool before visiting your dealer is not a good idea because you will be dealing with ballpark figures not exact. By visiting your dealership it can help you find out the specific price on the model you want, the value of your trade in if it applies, the down payment required and your interest rate and terms for the lease.