How To Negotiate A Car Lease
If you ever wondered what is the key to getting a great lease contract then you should know that being equipped with as much information as possible before entering a dealership is an essential step. By knowing the terminology you will also know how to negotiate the car lease.
First of all you should do some research concerning the type of car you want to lease. Get some numbers and be ready to convince the dealer to give you the car for a price under the manufacturer’s suggested retail price – MSRP (a discount of $800 or $900). Then, go visit the dealership, take a look at the cars available and pick the one you want to lease. Ask what is the cost involved by a two- or three-year lease, but don’t choose a lease period longer than 36 months, because by then the warranty will expire. Also, while negotiating the car lease you should specifically say that you aren’t interested only in the value of the payments, but also in the actual selling price of the car.
After finding out their proposal you should be ready to start negotiating, especially if their numbers are far away from the numbers in your mind. In order to have an idea how to negotiate the car lease, you should know that a lease is less flexible than a financing for a new car, but in the end the car company will influence the payments by establishing the so called money factor that is not influenced by your credit ratings. Also, you should keep in mind that dealerships offer sometimes rebate specials on some car leases. As a result you will be able to save up to $1000. You are very likely to get a rebate if you are a college graduate.
In the process of negotiating a car lease don’t forget about mileage. You can choose between 12,000 and 15,000 miles a year, while the price difference will be of $50 or $100 a year. Even if the extra mileage seems appealing maybe you shouldn’t go for it, because some car manufacturers will forgo the extra mileage when you give back the car. Another thing you shouldn’t do is let the salesperson convince you to get a car that has options you don’t need and which will involve paying monthly an extra cost.
If it was very clear for you how to negotiate the car lease, by the end of the meeting you should know the MSRP, the selling price negotiated for the leased car, the time period involved by the lease, the mileage available for each year of use and of course the value of every monthly payment you will have to make. You should also ask about the acquisition fee, which is not negotiable, because it depends on the car maker and is the same for any lease contract.
Once you finish with all those steps, you should come home and use an online lease calculator in order to determine if the deal offered to you is fair. If the two numbers are very close you can be happy to go back and sign the agreement, but if the difference is significant you should go back to the dealership and negotiate the difference. Be careful and hold your ground, because it will only prove you know how to negotiate a car lease.
These are the best advices available, but it’s all up to you and your determination. As long as you have the knowledge and you work on the skills you are very close to getting your dream deal.
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