Table of contentsChapter 1: Getting startedChapter 1: Getting startedBegin with a budgetSee all stories »Chapter 2: Shop till you dropChapter 2: Shop till you dropResearching vehicles onlineSee all stories »Chapter 3: The buying experienceChapter 3: The buying experience6 car-buying mistakesSee all stories »Chapter 4: The leasing experienceChapter 4: The leasing experienceKeys to leasingSee all stories »Chapter 5: Financing the dealChapter 5: Financing the dealWhere to get the moneySee all stories »Chapter 6: Insuring your vehicleChapter 6: Insuring your vehicleABCs of auto insuranceSee all stories »
Example: A car selling for $24,000 (or having a capitalized cost of $24,000) will have a residual value of $12,000 in three years. You'll need monthly payments of about $333 to cover the depreciation ($12,000 divided by 36 months). But if the starting price was $22,000 -- and the residual value remains $12,000 -- the monthly payments drop to about $278 ($10,000 divided by 36 months). Each month, you hang onto an extra $56.
Be especially wary that the starting price (capitalized cost) is not more than the MSRP.
While these are one-time fees, they still affect the overall cost of the lease. You'll want to negotiate everything and consider them in your computations when deciding which dealer to use.
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A little research could save you BIG on interest.