How to Lease Local Cars

Leasing an automobile gives you the opportunity to drive a nicer car, while saving money on your monthly payments. Leasing is different from purchasing a car. Leases typically last from three to five years, but at the end of the lease term, you're obligated to return the vehicle in good condition. This arrangement suits anyone who enjoys driving a new automobile every few years. Before leasing a vehicle, however, it's best to know the process.

Instructions

1

Clean up your credit. Get a copy of your credit report and order your FICO score before beginning your car search. Fix bad information on your credit report such as late payments or high debts in an effort to raise your score.

2

Assess your budget. Look through your personal finances and decide how much you can afford to spend on car. Don't reveal this information to the dealership or salesman.

3

Save money. You can lease a car without a down payment. However, consider paying a down payment to lower your lease price and monthly payment--about 10% of the lease price.

4

Test drive cars. Visit several dealerships to look through their selection and test drive cars.

5

Negotiate a purchase price first. Don't disclose your desire to lease a car until you've negotiated a purchase price with the dealership. Make an offer on the vehicle. Research the car's value on Kelley Blue Book (www.kbb.com), and then offer a realistic price for the automobile.

6

Compare lease deals. After negotiating a lease deal with the dealer, contact two separate finance companies and request a no-obligation quote.

7

Read the lease agreement. Make sure you fully understand the lease agreement before signing your name. Check the contract for items such as mileage allowances, balloon payments and gap insurance. Ask questions if necessary.