It is always exciting to get a new a car, but they don’t come cheap, so financial options must be considered.
At this moment maybe you have some questions, especially if you choose to lease instead of buy. Many myths and concerns exist when it comes to leasing a new car and it is reasonable. Failing to understand how leasing works could get you into some serious financial problems.
This is why today, at Big Dog Wraps we decided to share some useful information that could help you bargain the best deal you can get before printing your autograph on a bad investment.
How to Get a Good Deal
First of all, it is essential to do your homework and try to understand the industry terms. This will help your confidence in the negotiation. Remember these guys are pros and you need to show that you know what you are doing.
Here are some basic concepts:
The capitalized cost is the equivalent of the selling price. You want to get this cost as low as possible.
The residual value is the estimated worth of the car at the end of your lease.
Your monthly payments are determined by the difference between the capitalized cost and the residual payments, known as the money factor. Raising the residual value or lowering either the capitalized cost or the money factor will reduce your payments.
Remember you are in a battle and must negotiate carefully. Try to set a target price about 2% above the dealer’s cost. Start bidding below your actual goal and plan to wind up near that figure.
How it Works
Leasing is always attractive because you need to invest less money at the beginning to get an expensive car. A car loan is based on the full price of a new car, while a lease is based on only a percentage of the car’s price.
If the car is worth $30.000, with a car lease, you only pay the difference between the car’s price and what it’s expected to be worth at the end of the lease, which is a car’s residual value.
For example, if the vehicle’s residual value is 55 percent after three years that means the $30,000 car would be worth $16,500 at the end of the lease. You’d make lease payments on the remaining $13,500 and not the full $30,000. While with a car loan you’d finance the entire $30,000 purchase price.
Besides this payment system, keep in mind that when you lease a car you have mileage restrictions, and you need to keep your car in great shape to avoid end-of-lease penalties.
Can I Wrap a Leased Car?
This a very common questions between car shoppers. The answer is: “You have nothing to worry about!” Vinyl vehicle wraps have technology built into the vinyl adhesive that makes them safely removable by a professional installer.
In fact, a car wrap could help you avoid end-of-lease penalties, by protecting its original paint from ultraviolet fading, damage from chemicals, and minor scratches.
Give us a call today and we will gladly answer any further concerns about your car wrap. Our complete dedication to the success of your business and customer’s satisfaction is what makes us different. Contact us and get a free quote on your project.