Author: chris

If you are in the beginning stages of researching the car you would like to lease, read this article to learn what to look for when leasing a car.

Low Monthly Payments

What makes a great lease deal is simplified by low monthly payments. Low monthly payments are a result of a high residual value.

High Residual Value

Residual value is a car’s estimated worth at the end of the lease. You want this number to be high because when you lease, you only pay for the vehicle’s depreciation.

The depreciation is the difference between the vehicle’s original value and its residual value, therefore the higher the residual, the less depreciation you will pay. The depreciation is divided by the total lease term in months to determine your base monthly payment.

Vehicle’s with High Residual Value

Unlike buying, leasing a more expensive car can actually have a lower monthly payment than a less expensive vehicle. Luxury brands, like Acura and Lexus, are smart auto leasing options because they are well known for retaining their value. Toyota, Subaru, and Honda have a reputation as non-luxury brands that hold their value as well.

Brand new models also have higher residuals compared to last year’s model. This is why it is common practice to lease new cars rather than used. Used cars have already depreciated, making their end of lease worth significantly lower.

If you already have a car in mind, you can find out its residual by calling the dealership, looking it up on a vehicle valuation site, or you can save yourself the work and get a free quote from D&M Auto Leasing.

If you have issues with your credit, getting a car, whether you lease or buy, may be challenging. However, you still need a vehicle. If you have no or poor credit, a cosigner can help make that possible.

D&M Leasing is here to help you learn the ins and outs cosigning a car lease.

Do You Have Poor Credit?

There are a lot of ways to diminish your credit score. Maybe you’ve missed a few payment due dates, or went over your credit line. Sometimes unfortunate things happen and defaults, repossession, and bankruptcy are unavoidable. Such life events can negativity affect credit up to 10 years.

Even if you’ve evaded debt, lack of credit can be just as impactful. If you have no loan or credit history, the bank cannot accurately evaluate your credit performance.

There are plenty of free credit checkers, so you can assess where your credit lies before heading to the dealer. Credit scores can range anywhere from 300 to 850, 550 is considered very negative, while 750 is exceptional. Anything below 629 is considered bad credit. However, fair credit, 630 to 689, may also require a cosigner.

Who Should Be Your Cosigner?

The purpose of a cosigner is that they agree to make your lease payments if you are unable to. They are required to have good credit since their qualifications will grant the lease or loan approval. Even though their name is on the lease contract, the vehicle is still your responsibility; a cosigner is not a co-owner.  

Your cosigner should be someone with mutual trust. In case of serious financial hardship, in which there was no way you could make your monthly payments, you should be able to trust that your cosigner will fulfill the obligation.  Your cosigner must be able to trust that you will do everything in your control to be accountable for your monthly payments.

What If You Don’t Have a Cosigner?

Then you need a sub-prime lender. Sub-prime lenders provide loans to people with poor credit. This often comes at a higher interest rate to compensate. Both bad credit and nonexistent credit history are temporary nuisances that can be repaired over time. A car lease is a great start to building your credit or recovering bad credit.

At D&M Leasing, we take every client’s specific situation and personal needs into account when finding you a customized lease that works for you. Contact D&M Auto Leasing today for quote.

At D&M Leasing, we can save you up to 50% a month versus buying.

We also offer our exclusive EZ Lease. With the EZ Lease, you’ll have no down payment and no payments for 60 days! Our EZ Lease is a deal that can’t be beat. Check our out monthly car lease deals on some of our popular vehicles to save you even more money!

You’re busy, we get it! That’s why we offer driveway delivery, making the process easy for you! Whether you want it dropped off at your kid’s soccer practice or at your office, we’ll bring your new car to you and drive off with your trade in!

D&M Leasing has changed the way we shop for cars. At D&M, you don’t even need to leave your house to get into a new car. Sit back and let D&M Leasing do all of the work!

To see more information about our options, visit our EZ Lease.

Fill out the “Get A Quote” form at the top of the page and an agent will be in contact with you.