I’m going to tell you a secret. No matter what you may read, car leasing is not complicated. The thing is, car dealers would love for you to think that it is. This gives them an advantage, making it easier for them talk you into a deal that serves them best.
Armed with correct and up-to-date information just about anyone can find and negotiate lease best deals. Nearly every aspect of a lease is negotiable, from up front costs, to monthly payment amounts. Request a free lease quote today to obtain all information you need to get the best deal on your lease!
Tip 1: Take Advantage of Slow Sales – Often the best lease deals can be found advertised. If a manufacture or dealership is experiencing a decline in sales, or showrooms full of a specific model they will offer rock-bottom leasing specials to clear out inventory. Through our database of dealerships, TopCarLeaseDeals.com is updated daily with the best leasing offers in the market. Many of these specials are so limited or new that they have not or will not be advertised.
Tip 2: Negotiate the Best New Car Price – Find out how much the vehicle you’re interested in is selling for in your area. This will give you a rough estimate of how much your likely to pay for leasing or buying. Learn the MSRP and factory invoice price. The factory invoice price is basically the amount that the dealer paid for the car. When leasing the price you will negotiate is called the capitalized cost. Start by offering a number close to the factory invoice price, aiming to pay less than the MSRP.
Tip 3: Deduct Addtional Cash Incentives – Manufacturers may offer addtional cash incentives. These are to be deducted from the capitalized cost after you have agreed on a set price. As with your down payment and trade-in value these are considered capitalized cost deductions. These savings and payments will lower the capitalized cost making your over all lease cost less. Don’t let the dealer include them in price negotiations.
Tip 4: High Residual Value Equals Savings – Research brands and models with high resale or residual value. Based on your lease term find how much the vehicle will be worth after your lease is over. The difference between the vehicle’s capitalized cost and retail value at the end of the lease will determine how much you’ll pay. The higher the residual value, the lower your monthly payment will be.
Tip 5: Making Sense of Interest & Fees – One of the trickiest parts to negotiating a lease is understanding how the interest rate, sales tax and addtional fees add to the monthly payments. When you request a lease quote from a dealer, ask for the money factor as well. The money factor multiplied by 2400 will provide you with a rough estimate of the APR. This should be no higher than current car loan financing offers. Sales taxes will be paid with each monthly payment. Since lease payments relatively low, you can expect to pay less tax monthly.
