Leasing a car is a decision that many people make. It allows them to obtain a safer, newer vehicle without paying the full price for it. However, leasing also means that you’ll constantly have a car payment unless you follow some of the following suggestions to pay it off early:
Don’t Spend Your Entire Budget
Whether you’re meeting with a lending entity or a dealership, you’ll likely find out how much of a lease you qualify for. Prior to that meeting, you should have also determined how much you can actually afford to spend on the lease. Browsing through an inventory online, such as the one that Bay Ridge Nissan has, allows you to get a sense of what cars are priced at. Just because you can afford or are approved for a certain number doesn’t mean you have to spend it. Opting for an agreement that is lower than that sum will likely allow you to put extra money toward the lease and pay it off early.
Check the Agreement
Before you commit to any lease, you want to find out what the terms of the agreement are. By reading through the document, you might actually find that you are not permitted to pay it off early. Some entities have stipulations in place that penalize people who pay early. Upon meeting with the salesperson, you should ask if you are allowed to pay the lease off early. When that is your plan, this question should be one of the first that you ask.
Refinance Your Lease
Another option is to find out if refinancing your lease is possible. When you have a lease on a car, you’re making monthly payments, and those monthly payments have interest on top of time. A refinance means that you might have the opportunity to lower the interest rates. Then, you can take the extra money that you were paying in interest and apply it to the lease payments themselves.
Bring in Extra Cash
When these options don’t work for you and you still want to pay your lease off early, then you may need to procure another job. Sit down with your budget to find out if any extra money is available to pay off this lease before its time. When the answer is no, check out the local area to see if work is available part-time at night or on the weekends.
Paying off your lease early will likely make you feel relieved. It’s one less payment that you have to worry about. Some strategies can help you to reach this goal.