When looking into leasing an automobile, the best tool to come by is an auto lease calculator. It helps to determine what your monthly payments and final cost of the lease will be without having to worry about doing the math yourself. Another benefit is calculating if it’s cheaper to lease or buy the exact car which will help you make the best financial decision.
By entering key information into the calculator, it won’t take long to determine where you are at financially in terms of leasing a vehicle. Luckily, there are a variety of lease calculators on the website. Edmunds.com is just one website you can use. That along with many others will provide you with basic lease calculators and more in-depth calculators for free to aid in the decision of buying versus leasing. It’s easy to take a few basic steps of entering information after which your results will be displayed almost instantly.
There is a standard lease payment formula that is generally used by entering general information, but should more information be required, alternate calculations and steps can easily be followed. By being able to compare the cost of leasing a car versus buying that same car, it’s simple to see what the “money factor” would be for an auto lease or an “interest rate” would be for an auto loan. You can gather all the necessary material to make the most informed decision that is right for your budget.
While the given monthly payment is only an estimate of what your actual payments would be, it shouldn’t be too far off. The dealerships or banks may have some added factors that would cause the payment to fluctuate slightly.
Gaining knowledge is always valuable so you can be sure you are not surprised by any hidden variables and costs when you decide to lease or buy a car. You want ensure you are aware of your financial state and how leasing a car will affect that. By using the auto lease calculator, your mind can be put at ease in letting you know exactly what path you are traveling down.
Pre-Qualifying for an Auto Loan
A website by the name of CarsDirect states that you can hope for a better deal by having cash in hand to spend, but being pre-qualified for a loan before going into the dealership can help your chances of a better deal as well. Take the following things into account when trying to obtain pre-qualification: Significance, Strategy, Considerations, Potential, and Types of Loan.
Jesse Toprak of Edmunds.com would encourage you to be pre-approved for an auto loan before going to the dealership, even if you were looking to finance directly through the dealer. That makes it easier to debate the price because you have the bank to fall back on should the dealer not meet the price of your pre-approved loan.
Obtaining a copy of your credit report will give you a better notion on whether you are likely to be pre-qualified for a loan or not. Websites such as AnnualCreditReport.com or FreeCreditReport.com will provide a free report from TransUnion, Experian, and Equifax. A score of 720 or above is most likely to increase your chances of being pre-qualified. That information is provided by CarsDirect.
Even though the number on your credit report tends to be the main factor, be sure to look into all the information provided. Errors or incorrect material may be listed that can harm your overall score. Should this happen, you will need to write to the credit bureau identifying the mistake and asking it to be taken off your credit report.
A loan pre-qualification calculator can be used to resolve if you can be prequalified for an auto loan or not. Bankrate.com has a calculator to give an estimate on how good your chances are. Just because the calculator depicts you to be approved for a loan does not mean it is guaranteed. Type in all information including your total income, monthly debt, dependents, and credit card limit to acquire a prediction on being qualified for the loan.
Sometimes using an online source to get prequalified for a loan can be a better option than going through a bank or credit union. In the past, online lenders have loaned directly through car dealerships and since have started loaning directly to customers. A list located at Edmunds.com of its partner can be an outlet to get a loan online. You can also do you own search on the web for other online lenders.