There is no doubt that the option of leasing a car as compared to buying one is becoming increasingly popular. For instance, a 2016 report showed that about 31.9% of new cars manufactured in the US are leased. This is due to some of the wonderful benefits such as low/repair maintenance cost, tax benefits, the availability of different vehicles to choose from and reduced monthly payments, among others.
However, note that you’re only bound to experience these benefits if you’ve taken steps to get the best lease contract possible. As the average cost of a used car in the US can be as much as $20,000, it makes sense to consider leasing as an entrepreneur – especially if you can claim back some of that expense from your business.
This post will explore some of the best money-saving tips for car lease deals as a business owner. Using them will likely ensure that you come out as the winner in every deal; so, it makes sense to take some notes and apply them next time you go searching for a lease!
Table of Contents
Tip #1: Use The Power Of Negotiation
This strategy may be simple but it can save you hundreds or even thousands of dollars on a car lease contract. Taking an offer at face value and not asking the right questions to see if it can be tailored to your life or business can make you pay more than required. The best way is to consider the monthly charges and look for ways on how they can be reduced.
It’s important to speak to the leasing agent and describe your needs and what you’re looking for – this way, they can try and accommodate you. For example, saving a simple $30 a month on a 36-month contract can save you $1080 – which might not be a fortune, but is certainly in the pocket than out of it.
Most importantly, make your situation know so that you can help your leasing agent help you. As a business owner, you may be eligible for certain benefits or tax breaks that someone taking out a personal lease wouldn’t have.
This might require getting a different model, or even taking out an EV – but in the end, it’s worth investigating if it means saving some extra cash on your part.
Tip #2: Get Clued Up On Your Manufacturer Warranty
Every vehicle that is leased comes with a manufacturer’s warranty, designed to cover serious manufacturing faults or mechanical issues. Every brand’s warranty policy is different and ranges from 3 to 7 years.
The catch here is that a warranty will not cover day-to-day faults – this falls on maintenance or insurance. It’s not advised to rely on a manufacturer’s warranty as a form of maintenance, as you will more often than not have to pay out of your pocket if your car has an issue.
Knowing this, build associated maintenance costs into your contract and figure out whether your particular industry has a higher risk for wear and tear. If so, it might be useful paying that extra amount for maintenance every month – rather than have to fork out a hefty payment on repairs at the end of your contract.
Tip #3: Time Your Lease In Your Favor
Like any industry, manufacturer’s have periods where they have amassed stock and need to clear it. Your leasing agent will know this, and with some careful planning and patience – it is highly likely that you could snap up a lease deal when it counts.
A simple way to do this is to enquire with a leasing company about a particular vehicle, but remain open to different – or more affordable – options.
Once you’ve enquired and an agent is working with you, ask about other vehicles that are over-stocked or manufacturers are trying to clear. Any leasing agent who knows their trade will know what you mean and will be more than happy to abide if it means securing a contract and getting their commission.
You’ll walk away with a more affordable lease, and the agent will get their reward – that’s a win-win for everyone!
Tip #4: Get Down With The Details
As a business owner, you know that going into any dealing without adequate preparation is a fool’s errand. There are tens upon tens of factors to consider when taking out a contract.
Learn the jargon, associated terms, and the elements of a typical lease contract. Ask where most lessees make unnecessary mistakes and double-down to ensure you don’t do the same.
As a business owner, you’ll have even more questions to ask: should you take out a personal or business lease? What if your business goes under? Can you extend your annual mileage if your business grows and more driving is required?
Furthermore, ask about servicing, maintenance and insurance – as mentioned above. Ensure that you’ve factored in your lease cost into your business overheads and that you won’t end up sitting with an expensive commitment that occurred as a result of poor planning.
As always, make sure to use your leasing agent as a soundboard who should be more than willing to help you out.
Tip #5: Consider All Your Options
The leasing landscape has changed a lot in recent years, with it now being possible to take out a lease entirely online without even driving the car.
This is extremely convenient, not to mention time-saving, and something you should use to your full advantage.
A good place to start is to have one or two vehicles in mind and submit a request to a few leasing companies. They should all get back to you with their rates, and once you’ve outlined your needs and requirements, they’ll adjust the offer based on this.
Tabulate all the offers and list the benefits of each contract, deciding which one is going to suit you best. As a business owner, it’s important to consider flexibility – so factor this into your contract too.
Final Thoughts?
In closing, the above roundup is a useful way to make a checklist of all the things to look into when taking out a lease contract if you’re aiming to save some money.
As a business owner, it’s important to have flexibility and options – developing a personal relationship with your leasing agent is the best way to ensure you get those.
Make them aware of your needs, listen, pay attention and use some common sense to find a vehicle that most benefits what you’re looking for in a leasing contract.
About Carson Derrow
