There's a Good Chance You Didn't Know About These 2 Ways for Lowering Your Monthly Lease Payments

Leasing a car is a pretty straightforward process - you agree to pay a certain amount of money for a predefined period of time and in exchange, you get the keys to a new BMW that you can drive a certain number of miles without having to worry about maintenance and costly repairs. When the lease is over, you simply return the Beemer to the dealership and that's the end of it.

One thing to keep in mind, though, is that not all leases are created equal. What that means is that some lease offers are better than others and the savvy shopper is bound to find them.

So, if you are looking to lease a new BMW, the strategies we've outlined below can help you save money. Or if you are in the middle of a lease, the tactics below can help you get out of your current one without incurring hefty penalty fees.

1. Lower your monthly payments by making multiple security deposits

To lease both a new or a certified pre-owned BMW, you'll have to pay a security deposit that's usually the same as the monthly payment, rounded to the next $50 interval. But did you know that paying the equivalent of a few security deposits upfront will lower your interest rate and monthly payments? The best part is that you'll get them back at the end of the lease term (given the car has no excessive wear and tear).

Here's the caveat - not all leasing companies allow this practice and there's a limit on the amount that can be used as a security deposit. In addition, the amount you paid as a security deposit is basically locked for the period of the lease and this is money that could have potentially been invested for a higher return.

2. One-pay lease as a way to lower monthly payments

Not a lot of people know that this is an option - paying the entirety of the lease in a single lump sum to save money on the lease. It makes sense, though. Instead of paying a few hundred dollars every month, you pay the entire lease off and get a lower interest rate. Say, for example, you were to pay $12,000 over the course of three years. If you're willing to write a check for the whole lease you would end up spending only $10,500 which is a saving of $1,500.

3. Month-to-month lease at the end of the lease period

Life happens. We get carried away from time to time and before we know it we have a month before the lease is over. Instead of panicking about not having a car at the end of the lease and rushing into a decision, you can call the lender and discuss keeping the car on a month-to-month basis.

Most companies will be happy to do that even though there's a limit on the number of months you can keep the car but that's ok if all you need is another month or two to decide on your next vehicle. In this case, extending your lease might be worth checking out.

4. Transfer your lease as a way to get out

If for some reason you want to get out of the lease you can do so. There are sites that can help you do that - they would list the vehicle, find someone to take over your lease and help you with the paperwork for a fee. This scenario covers about 80% of all cases.

For the remaining 20%, the leasing company will still allow transfers, but they will require you, the original leaseholder, to retain "post-transfer liability" (all that means is that if the other person stops making payments you'll have to start making them).

5. Even if you drive a lot you can still lease a car

People wrongly believe that leasing is only for those who don't drive a lot. And I can see why they think that; it's because there's always somewhere in the fine print a limit on the miles a vehicle can be driven. For example, a new BMW X3 lease has a 10,000 miles per year limit and there's a hefty fee if you go over the limit.

On the other hand, you can prepay for extra miles in advance and this way you'll end up paying less per mile. One thing to know is that you won't get your money back if you didn't drive the miles you prepaid.

Hopefully, the strategies outlined above will help you negotiate a better lease deal or get out of a current lease without paying hefty penalty fees.

>> Looking to lease a BMW? Check Out Our Current Lease Offers or Call (570) 338-6955 to Speak with One of Our Experienced Lease Specialists <<


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