Shopping For a Car

When you set out to buy a car (assuming you get financing at a bank or a credit union), you can count on the price of the money (interest rate) being pretty much the same no matter which new car you buy. So, the process is relatively relatively straight forward: decide how much you are able or willing to spend based on the current interest rates then select the "best" car within that constraint. Unfortunately, leasing adds a new wrinkle to the equation.

Since most banks and credit unions do not finance automotive leases, your options are pretty much limited to the manufacturer or third-party leasing company's pre-arranged leasing programs. Depending on the type of car and market conditions, leasing terms can vary widely from manufacturer to manufacturer. In effect, the financing and the vehicle become a package deal with the financing term varying significantly.

So what does this mean? It means that when shopping for a lease, you must shop for competitive terms as well as price.

• Next Topic: Getting the Lease Terms

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