That Low Monthly Car Payment Might Not Be the Best Deal: Here’s What to Look For

You see an advertisement for a brand-new vehicle at an unbelievably low monthly payment.

It catches your attention immediately.

But before you decide you've found the deal of the month, there's a much more important question to ask:

What does it actually take to get that payment?

At Royal Auto Leasing & Sales, we believe a great car deal is about much more than one big number in an advertisement.

Money due at signing, mileage, lease term, loyalty requirements, rebates, trade equity and other fees can dramatically change what you're actually paying.

That's why comparing vehicle deals based solely on monthly payment can be misleading.

Let's break down what you should really be looking at.

$299 a Month Doesn't Always Mean $299 a Month

Imagine you see two advertisements.

Vehicle A is advertised for $299 per month.

Vehicle B is advertised for $349 per month.

Vehicle A automatically sounds like the better deal.

But what if Vehicle A requires $5,000 upfront while Vehicle B requires only taxes and applicable fees upfront?

Suddenly, the comparison looks very different.

A low advertised payment can sometimes be achieved by putting a significant amount of money down.

That's why you should always ask:

How much is actually due at signing?

Look at the Entire Deal, Not Just the Payment

When Royal evaluates a lease opportunity, we're looking beyond the headline number.

Important factors can include:

• Monthly payment
• Amount due at signing
• Lease term
• Annual mileage
• Taxes and applicable fees
• Manufacturer incentives
• Loyalty qualifications
• First responder incentives
• Military incentives
• Current vehicle equity
• Trade-in value
• Vehicle trim and equipment

All of those factors can affect the real value of a deal.

Mileage Can Change the Payment

Another detail that can easily get overlooked is mileage.

A lease advertised with 7,500 miles per year isn't necessarily comparable to another lease offering 10,000 or 12,000 miles per year.

If you drive more than your lease allows, excess mileage charges may apply at the end of the lease.

So while a lower-mileage lease might produce a more attractive advertised payment, it may not be the right deal for someone with a longer commute or higher annual mileage.

At Royal, we want the lease to fit the way you actually drive.

Saving a few dollars per month doesn't help if you end up with a mileage allowance that doesn't work for you.

Loyalty Can Make a Big Difference

You'll often see the words "with loyalty" attached to a vehicle special.

What does that mean?

Manufacturers may offer additional incentives to customers who currently own or lease a qualifying vehicle.

Those incentives can sometimes make a significant difference in the monthly payment.

But if you don't qualify for loyalty, your payment may be different.

That's why Royal clearly works through the qualifications with each customer.

We want you to understand which incentives apply to you rather than assuming you'll automatically qualify for every advertised rebate.

There May Be Other Rebates Available

Loyalty isn't the only potential incentive.

Depending on the manufacturer and current programs, qualifying customers may have access to additional incentives.

These can sometimes include programs for:

• First responders
• Active military
• Veterans
• Current customers
• Competitive-brand owners
• Recent graduates
• Other manufacturer-specific programs

Programs and qualifications can change, so it's important to evaluate what's actually available when you're ready for a vehicle.

We've helped Royal customers take advantage of multiple qualifying rebates to make already competitive deals even better.

Your Current Vehicle Could Change Everything

Are you trading something in?

Don't overlook it.

Your current vehicle may have positive equity, meaning it's worth more than your payoff.

That equity can become an important part of your next transaction.

On the other hand, if you owe more than the vehicle is worth, you're dealing with negative equity.

Either situation needs to be factored into the numbers.

We've helped Royal clients get out of financed vehicles with equity and transition into new leases with very little or even no out-of-pocket expense, depending on the individual transaction.

That's why we always say:

Your next car deal starts with understanding the vehicle you're driving now.

Don't Confuse Money Down With Money Due at Signing

This is another area that can create confusion.

"Money down" and "total due at signing" aren't necessarily the same thing.

Depending on the transaction, the amount due at signing can include items such as your first payment, taxes, registration or other applicable charges.

When comparing deals, make sure you understand exactly where your money is going.

Don't just ask:

"What's the payment?"

Ask:

"What's my total out-of-pocket cost?"

That's a much better question.

Compare Similar Vehicles Across Different Brands

Here's where working with Royal becomes especially valuable.

Let's say you want a midsize SUV.

You might immediately think Nissan Rogue.

But maybe Hyundai has an aggressive program on the Tucson.

Maybe Jeep has a strong incentive.

Maybe another manufacturer has an option you hadn't considered.

If you walk into one manufacturer's dealership, they're naturally going to focus on selling you their vehicles.

Royal isn't limited that way.

We work to find the best deals across all brands.

That means we can look beyond the badge on the grille and help you evaluate the bigger picture.

The Cheapest Vehicle Isn't Always the Best Value

Price matters.

But so does what you're getting for that price.

Maybe one vehicle is $20 more per month but includes AWD, a better trim level, additional safety equipment or features you actually want.

Maybe another vehicle has a slightly higher payment but requires considerably less money upfront.

Maybe the more expensive-looking deal actually gives you more mileage.

That's why we prefer to talk about value, not just the lowest possible monthly payment.

Leasing and Sales Means More Options

Royal isn't limited to leasing either.

We're Royal Auto Leasing & Sales.

Sometimes leasing produces the better opportunity.

Sometimes purchasing makes more sense.

Sometimes a customer comes to us convinced they want one option and changes direction after seeing the actual numbers.

That's okay.

The goal is to help you make an informed decision, not push you toward a predetermined transaction.

Beware of Deals That Look Too Good to Be True

Social media has made it easier than ever for anyone to advertise vehicles.

It's also made it more important to know who you're dealing with.

A spectacular payment posted online doesn't tell you much unless you know the complete terms behind it.

Before providing personal information or sending money, verify the business.

Does it have an established presence?

Does it have a real office?

Is it properly licensed where required?

Does it have a substantial history of legitimate customer reviews?

Be cautious of random middlemen who may not have proper licensing or an established office.

Saving a few dollars isn't worth putting your personal or financial information at risk.

Why Royal Auto Leasing & Sales?

Royal Auto Leasing & Sales is proudly LEO owned and operated.

We built our business around making the vehicle process easier while giving customers access to competitive opportunities across different manufacturers.

Instead of spending your weekend bouncing between dealerships, let us do the shopping.

We can help with:

• All makes and models
• Leasing and purchasing
• Trade-ins
• Financed vehicles
• Lease transitions
• Manufacturer incentives
• Qualifying rebates
• Vehicle locating
• Door-to-door delivery

And most importantly, we'll help you understand the deal you're actually getting.

Before You Sign, Ask These Questions

Before agreeing to your next lease, make sure you know:

1. What is the monthly payment?
2. What is the total amount due at signing?
3. How many miles are included annually?
4. How long is the lease?
5. Does the advertised price require loyalty?
6. Which rebates am I actually eligible for?
7. Is money being used as a down payment?
8. What is my current vehicle worth?
9. Do I have positive or negative equity?
10. Are there comparable vehicles from other brands with stronger offers?

If you know those answers, you're in a much better position to evaluate the deal.

Don't Chase a Payment. Find the Right Deal.

A low monthly payment looks great in an advertisement.

But the best car deal is the one that makes sense when you look at everything together.

At Royal Auto Leasing & Sales, that's exactly what we help our customers do.

Tell us what you want to drive, what you're driving now, how many miles you need and what budget you're trying to stay within.

Then let us shop the market.

All brands. Leasing and sales. No dealership runaround.

Royal Auto Leasing & Sales
631-499-0288
RoyalAutoLeasingNY.com