When leasing a Dodge Caravan, or any vehicle, you pay the leasing company for the amount the van depreciates over the period of the lease. Depreciation is the amount the Caravan's value drops while you are driving it. The lower the depreciation, the lower your lease payments will be. Before leasing a Caravan, ask the salesperson questions about the manufacturer's suggested retail price (MSRP), depreciation amount and length of the lease to make sure you get the best possible deal.
Determine the MSRP for the Caravan you wish to lease. According to Dodge's website, the 2010 MSRP starts at $23,660. This is the base model price, without any options or add-ons. If you opt for extras, such as the Uconnect system for music and directions, the MSRP will be higher.
Negotiate the price. Many dealers will tell you that because you are leasing instead of buying, you must agree to the full MSRP. This is not the case. When leasing, you can negotiate with the dealer to get a lower MSRP. The final agreed price is called the capitalized cost, or cap cost.
Choose the length of the lease. Most leases run for 24, 36 or 48 months. Since a vehicle depreciates the most during the first two years, a 24-month lease will be the most expensive. The amount of your lease payments is determined by an estimate of the Caravan's value at the end of the lease; this is called the residual value. For example, the dealer may determine that your Caravan will only be worth 50% of its value in 24 months. So to use the current starting MSRP of $23,660 as an example, its value would be $11,830 in 24 months.
Compare the lease's money factor to the annual percentage rate (APR) offered when purchasing a Caravan. When you lease a vehicle, a leasing company buys it from the dealer for the agreed upon MSRP. You then make payments to them that include a certain amount of interest, called the lease's money factor. Make sure the interest they charge is in line with the APR that dealers charge on a purchase. If you can buy a Caravan for a 5% APR, you would not want to agree to a money factor of 10%, since that would be twice the interest.
Sign your lease agreement. Once you have come to an agreement on the cap cost, length and money factor, your Dodge dealer will provide you with a monthly payment amount that you will make to the leasing company. You then sign the agreement and begin your lease.
