Leasing a car can be the best alternative for you to have a go at your dream ride, even at a much lower cost. When you lease, you are only paying for a portion of the car’s value. The monthly payments in car leasing are nothing compared to what you have to pay in purchasing a car. In making a car purchase, you pay for the vehicle’s entire price. You might have to go for an auto loan in order to pay off the high cost of fully acquiring the car.
However, a lease might pose a daunting way of acquiring a car if you don’t know the basics. As a matter of fact, knowing the basics is what should count first. If you can grasp a bit of it, you will understand that lease can be even more affordable when you take advantage of an automaker’s incentives.
What Is Lease Incentive?
A lease incentive as it relates to the auto world is the methods used by car manufacturers and dealers to initiate more vehicle leases by reducing the net cost to consumers without reducing the vehicles’ MSRPs.
The last few months of every calendar year comes with the greatest lease deals. Most car manufacturers and leasing companies in a bid to finish the year strong are offering mouth-watering incentives for loyal customers. With these incentives, you will bag a lesser than usual monthly payments and even less at signing. With the tariff conflict and trade war, car prices may increase. Now should be your best opportunity at signing off that deal.
Below are the top car lease incentives that you should never miss;
- Special Lease Incentives
Automakers usually present special incentives in an attempt to lure you away from close competing models. In this specialized incentive, the amount of the monthly payments will typically be reduced. This can be accomplished by either using a higher residual value or a lower interest rate, or both.
A clear example is if Mercedes Benz should offer special incentives on the C-Class against a close rival like the BMW 3 series. It’s so clear here that the Mercedes will gain an extra customer if you take their incentive. However, the consumer will end up saving big bucks and gaining if not close value cars. The special lease incentive is also known as a subsidized lease or subvented lease.
- Conquest Cash
Automakers are always in a constant battle of who will get the highest chunk in the auto market. In a bid to create more demand and have more consumers, most manufacturers do offer tempting incentives on some handpicked models to potential car buyers or lessees who are currently driving cars from a rival brand. These incentives can be offered with a clear open mind by the manufacturer or may be targeted to a specific or set of close rival brands. Also, when they are more targeted, it tends to move towards the special lease incentive. Most of the time, the conquest cash deals are usually put up for adverts.
- Loyalty Programs
One of the things every business strive to for aside from growing their customer/consumer base is on how to retain them as well. Car dealers always take returning customers to the heart. To instill the spirit of brand loyalty, most automakers like Toyota, Nissan, Audi, and a whole lot of others do provide rebates to customers who already leased a vehicle in its same brand name. Some companies will go all the way to take responsibility for any irritating charges like the disposition fee, saving you a few hundred dollars at the end.
For example, Subaru offers a Subaru of America Lease Loyalty program. This program entails that the company will be fully responsible for the first monthly payment of your next Subaru lease. Also, any disposition fee owed on your current lease will be subsequently covered by them.
- Dealer Cash Incentives
There’s no better tool to use to increase sales of any given car model than the Dealer Cash Incentives. For consumers, Dealer cash incentives are made available by some banks that are campaigning for sales in a specific model. This makes the lease prices more attractive and ends up drawing more consumers to the brand. However, you must be aware that not all banks are into offering dealer cash incentives; be sure to check out your financial institution before going ahead with the leasing process.
Typically, the incentives are paid to the auto dealers by the manufacturers to stimulate sales momentum or reduce inventory pressure for certain car models. Although they might be slight variations, however, the most recognized dealer cash incentive structure makes cash credit available to the dealer upon the sale of a vehicle in the program. Dealers, in some cases, get cash bonuses when they achieve sales volume targets.
- Corporate Incentives
Perhaps, one of the feasible ways of driving that luxurious car is through corporate incentives. When your company participates in the corporate incentive program, you stand a great chance of saving big on the lease. Through this program, you need not concern yourself by the rigorous hassle of negotiating deals as that will be taken off by your company. With your company using top class negotiators, you are sure of landing the best possible deal ever.
Most corporate incentives come with the best discount, saving you a good sum of money. At the same time, you get to ride a safer, reliable, and fuel-efficient car.
- College Graduate Incentives
Fresh graduates now can utilize the College Graduate rebates and discount to get a new ride. Take it as a post-college car. All you need to present is proof of graduation within the last two years or the next six months, good credit history, and proof of employment. Also, you may be required to lease the car through your preferred financial institution. This will help you push through your new life with fewer difficulties.
There are many incentives that you can grab on to save you even bigger money. You can also use the APR financing or the special leases to gain more. However, not minding the lease incentive you decide to go for, it should never take the place of negotiation.