If you want to drive a new car but are not up for purchasing a brand-new vehicle, a lease is a great work around. A lease allows you to enjoy the luxury of driving a new vehicle without the same expenses and long-term obligation that purchasing a new car comes with. Here are some of the expenses you should expect when you lease a Lexus or other vehicle.
#1 Acquisition Fee
Many leasing companies will charge you a fee that is specifically for arranging the loan for you. Not all leasing companies charge an acquisition fee, but many do. Acquisition fees generally run a couple of hundred dollars, but less than a thousand dollars. Acquisition fees can be paid up front, but more often than not they are bundled up and adding into your monthly lease payments. For example, if the acquisition fee is $500 and you have a 36-month lease, you will pay an extra $13.88 per month on your lease for this fee.
#2 Capitalized Cost
The capitalized cost is the overall value of the car, or the price that the car would sell at if it was sold instead of leased. This number is important as it impacts your monthly loan payments. You want to work hard to reduce the overall capitalized cost of the vehicle. If you can bring down the selling price of the vehicle, you can bring down the amount of money that you have to pay each month on your loan. Your loan lease amount is based on the overall selling price of the vehicle, so lowering the selling price can work in your favor.
#3 Security Deposit
Next, you may be asked to put down a security deposit. Once again, not all leasing companies require a security deposit but many do. A security deposit is in place to ensure that if the vehicle is damaged, there is money to take care of the damage. It works in the same way a security deposit works when you lease an apartment or home. Once again, this is something that you may be able to negotiate.
#4 Down Payment
Yes, even leases require down payments. Placing a down payment generally helps reduce the overall monthly lease payment. A down payment can help make the monthly cost more manageable. However, some people try to avoid a down payment because you can't get the down payment back if you end the lease early, reducing the benefits of putting a down payment in the first place.
When it comes to leasing a vehicle, there are numerous costs you need to be aware of. First, work to lower the capitalization cost of the vehicle to lower your monthly payment. Then, work on lowering the acquisition fee and down payment fee. The goal is to get the lowest monthly payment possible while enjoying the benefits of driving a new vehicle.Share