Do you know how and when to negotiate your car lease deal? Statistics show that over half of all luxury models are still leased and over 20% of all vehicles are leased. The important factor is that knowledge is power when it comes to automobile leasing. You need to be able to recognize a bad deal as well as know how to negotiate a good deal. I hope you find this article helpful in knowing whether the deal is good or bad for you.
The instability of today’s economy has caused a boom in car leasing. Many that have leased over the last few years have gotten stuck in bad contracts making them overpay. Others who could benefit from leasing have shied away from it due to misconceptions or not fully understanding auto leasing. The other thing that has impacted leasing is the fact that many car manufacturers have lower interest rates as low as zero percent. In spite of this fact, there are many good lease deals out there to consider.
The big allure of leasing versus buying a new vehicle is that you get a new vehicle for which you purchase the use of for a determined period of time rather than the lifetime of the vehicle. It is similar to renting in principal but does not work exactly the same way. Evaluating a leasing contract comes down to basic arithmetic. You will need to consider the following when leasing: the total initial payment which includes the down payment and any other fees, the cost of the each monthly payment, the number of months included in the lease, and possible additional charges that may incur at the end of the lease.
The additional charges are related to how many miles you drove the car during the specified period. Most contracts allow for 12,000 to 15,000 miles per year. Any overages will result in a fee as steep as 25 cents per mile.
Any damage to the vehicle, such as deep scratches, dents, glass cracks and non-working accessories will also incur a fee at the end of the lease. Some vehicles may be purchased at a pre-set price at the end of the lease. This should be negotiated at the time the leasing contract is made.
If you have little money for down payment or like to upgrade or replace you vehicle on a regular basis leasing will probably work better for you as it usually has a lower initial fee. When leasing a vehicle, you may wish to visit dealerships and look at new vehicles of the same make and model as the vehicle you would like to lease. This will allow you to make a more accurate decision. I hope this has helped you know how and when to negotiate your car lease deal.
Contrary to popular belief, car dealers do not lease cars.
Banks, credit unions, and financial divisions of major car manufacturers lease cars. Dealers simply act as agents of a leasing provider, such as Ford Motor Credit or GMAC, to arrange the lease on your behalf. Dealers typically work with more than one provider.
1) What did the dealer pay? You need a starting point when figuring how to negotiate a car Lease Specials deal. This means you’ve got to understand a good price vs. a not so good price. The best way is to use a service like TrueCar.com, which provides an in-depth analysis of what dealers paid for the car, invoice price and the manufacturer’s suggested retail price (MSRP). The site will also offer guidelines of what a good negotiated price will be for a particular vehicle.
2) Make multiple visits: The worst time to Lease Specials a car is when you desperately need one. The best time is when you take your time. Let the dealer win you over. Take your time. Make sure you leave and come back a few times so that they start to feel anxious about closing you.
3) Comparison shop: As a follow on to the previous tip, go and visit a few other dealers to see what they offer and also to establish a relationship with a salesperson. If you have a few dealers working for your business it ultimately benefits your bottom dollar.
4) Use the Internet: In addition to chatting it up with multiple dealers in your area, be sure to utilize the Internet to check deals from around the state. It’s easy to buy or Lease Specials a car from a different part of the state and they’re more than happy to ship the car right to your doorstep.
5) Love something else: When you go back to the dealer you’ve established a relationship with, make it known you may be falling in love with a different brand. Always make sure they’re selling you because a lower price is part of that sales process. Don’t lose interest entirely or else they’ll think you’re not being serious. A good way to accomplish this is to show some concerns about their car compared with another one you saw. You’d be happy to be with them but you have some concerns.
6) Knowing these guidelines will be key in understanding how to negotiate a car Lease Specials that fits within your budget.