How much you can afford to pay for a vehicle depends a lot upon your existing monthly expenses. In the case of leasing, the general rule of thumb is that your car monthly car lease payment should not exceed 20% of your income. Do not forget to include the value of insurance in it, so overall it will become a slightly higher amount.
One issue in determining the right vehicle for you is not knowing the final price of the vehicle before a lease agreement. There are many factors to consider, but a fair baseline is to use $125 per month in payment for every $10,000 MSRP cost. Again, this cost may also fluctuate greatly, so this is just a general rule.
If you want to have a quick idea about the actual lease rates, go to the internet and search for a real-time rate calculator. Most of the calculators online use the actual ALG values that the dealers use across many popular lenders. Your payment will vary according to the criteria selected on a particular calculator, especially your selling price and term. In determining the affordability, you must also consider the cost of insurance as well. Also look for any low insurance premiums. Finding a vehicle with the affordable range is a challenge that is met by following the above-mentioned instructions.
