Finding cheap car lease deals is easier when you know the true value of your car. The best lease deals 2023 has to offer are reserved for drivers who understand the true market and residual value of a leased vehicle. It’s the best way to know if you’re getting the best deal and helps you negotiate prices.
The true market value (TMV) of a car is the median price that buyers are paying for a particular make or model of a vehicle. The residual value of a car is its value at the end of a lease after certain depreciation factors are applied. Continue reading below to learn more about how to find your car’s true and residual value.
Finding a cheap car lease deal requires you to do a little research and digging. Understanding your car’s true value will give you a better idea of the average price you can expect to pay for it.
Lease companies determine the terms of lease deals, including the sale price, down payment requirement and other fees or charges. Like any other company, leasing companies want to make a profit. Being an informed consumer can help you weed out companies that are charging much more than the average.
For example, some leasing companies inflate the value of the car in order to charge more money. The only way to know if the value is inflated is to understand the TMV. The TMV is calculated by consumer-research groups or companies, and it can reflect either regional or national average selling prices for any specific model.
Other companies might not inflate the value but may do everything in their power to not reveal it. That’s why doing your homework before heading to the dealer is so important. There are several different consumer research and auto websites that have price calculators you can use to learn which variables affect the price of your vehicle as well as a price estimation to compare with the one you are offered.
If you already know the TMV of your vehicle, you won’t be tricked into a bad lease deal.
At the end of your lease, you may consider purchasing it outright. If you know the TMV and the residual value, you can determine if it is worth it to buy it. In many cases, the vehicle is not worth as much as you still owe on it.