Negotiating A Car Lease
If you are interested in getting a car lease and you want a good deal you should know that negotiating a car lease is another way to reduce the costs. Don’t count only on discounts or promotional offers, but also use your persuasion skills that might get you a better bargain or help you avoid some additional fees.
Just a few simple steps and you will be able to confront the car dealer and get the lease you need. First of all you should gather as much information as possible about the lease you wan to ask from the car dealer. Pay attention at price and depreciation and choose cars like Hondas or Camrys that are know to be great car leases because of their residual value. As sources you can use many websites like Autobytel.com or CarSmart.com that will help you make a decision.
Secondly, when you are negotiating a car lease you should be objective and keep in mind your credit history. If you don’t meet the requirements you will be asked to provide a down payment, but if you are able to avoid it do so. That’s because those money will never come back to you and your rate will be just slightly reduced.
Thirdly, you should try convincing the car dealer to forget about the acquisition fee and the security deposit. The acquisition fee is usually stated in the car lease agreement, but before signing you should ask the dealer what he can do about it, if there’s any way to work something out. Be firm! And if you have good credit you should tell the car dealer to renounce at the security deposit. Its purpose is to protect the leaser in case of excessive damage to the car, more mileage than average and other situations involved by the daily use of the car.
If you are really interested in saving money you should also know the level of taxes your state charges for car leases. The best source of information when it comes to taxes is the local Department of Motor Vehicles. The DMV and the dealer can explain you the cost supposed by taxes, how the payments are made (each month or they are added to the lease related payment) and some other details that vary from state to state.
Another important aspect you should consider when negotiating a car lease is the length of the lease contract. Some of us might consider 24 months enough while others would go up to 72 months, but no matter what, you should know that the longer the lease, the smaller the payments get. It is also wise to have a lease contract as long as the warranty period in order to pay only for regular maintenance. And most importantly, in case you want (for some reasons) to terminate the lease agreement earlier you should also negotiate penalties at the dealership.
Last, but not least you should take a lot of interest in the price when you are negotiating a car lease, because refinancing your car lease is not a good idea. Usually the cost is huge, because of all sorts of penalties that you will definitely hate paying. See refinancing as a last resort, when your interest rate reduction is considerably better than the penalties you will be obliged to pay.
These being said, good luck negotiating your car lease and hopefully, by the end of the agreement, you will be able to negotiate the purchase of the leased car at an affordable price. Just take good care of the car and be firm!
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