How To Lower Your Car Lease Payment

Rather than leasing a vehicle owned by someone else you buy the car and it s titled in your name.

How to lower your car lease payment. Miles driven is a major factor that affects the value of a used car. There may also be less strict credit requirements and no need for a down payment. A good way to reduce your payments is to make payments on a cheaper car. Sometimes you can get leases with annual mileage limits of as little as 7 500. If bad credit or no credit history prevents you from getting the best rate on a car lease find a co signer with an acceptable credit history.

Monthly payments are typically 30 lower than a conventional loan with the same term. The car you sell must be worth more than the loan balance. A used car lease could mean even lower payments than a new one. You can sign a lease for as low as 7500 miles per term just make sure not to go over your mileage or that can have the opposite effect. If you need to put down a large capitalized cost reduction to make your lease payment manageable you should most likely be looking at a less expensive vehicle or at least a lower trim level of the vehicle being considered.

Refinance to lower your car payment with a lower interest rate if you have an existing car loan the quickest way to lower your car payments is to refinance the loan to a better one. Unlike most leases there s no security deposit. Choose a longer lease term. This is another way to reduce your payment even if interest rates have not declined. Offer or counteroffer the lease holder an amount less as much as 25 percent than the residual value of the car depending on whether you contact the company first or the other way around.

The fewer miles you drive the more the car will be worth at the end of the lease thus lowering your depreciation cost. Because the co signer agrees to make the payments if you default on the lease the leasing company may offer a lower interest rate which can reduce your car lease payments. One final way to minimize your lease payment is to lower the mileage allowance. That s because like a lease you only pay for the value of the car you use. Now keep in mind this will not work if you plan on driving your car more than the allotted miles.

You don t need a down. If not you may need to pay for the difference out of your own pocket.