Get The Best Tips On A Car Lease
The only way to get an upper hand during negotiation is being informed. The more prepared you are, the better chances of you walking out of the lender’s office with a cheaper rate on the car lease.
- Understand the language - The terms and jargon used in car leases is different from car sales or auto loans, so read on to familiarize yourself with the words you'll use.
- Research and compare available options – You must compare quotes from different lenders, both online and offline. This will help you find better rates as well as give your more legroom for negotiation.
- Lease the right car – You might want to lease a car with a higher residual value or one that offers a reasonable cap cost.
- Review the negotiables – You can’t possibly negotiate every aspect of a car lease. Yet, there are certain factors (listed below) that every lender is open to negotiating. Make a list of those before you meet the lender.
- Look beyond the monthly installments – Look at the total costs instead of monthly payments as it will help you better compare deals.
- Avoid unnecessary add-ons - One great way to get a decent lease deal is to stop expensive add-ons that can raise the amount you have to pay in advance or for each of your lease payments.
How To Research For The Best Car Lease Deal
First of all, you should determine the make and model of the car that you want to lease. Next, you should check if there are any ongoing lease offers on the preferred vehicle. If yes, make a note of the dealerships offering them. This will help you squeeze in additional discounts on top of the negotiable aspects.
You can search the internet or newspapers for relevant ads near you and ask for quotes from different dealers. The terms and rates vary from dealer to dealer and on the selection of the vehicle, hence another great way is to select 2-3 models for comparison.
Check Out Multiple Dealerships
The more dealers you check out, the more options you get.
You must check the manufacturer’s website as well to see if there are any additional discounts or offers on top of the offers from the dealerships.
The rates and charges vary by dealership, making it pivotal to gather as many quotes as you can.
When you have multiple quotes, you will be better informed about what the market has to offer.
This gives you an advantage of putting in your preferred rates and not automatically agreeing to the dealer’s terms.
A good way of comparing available prices is by visiting comparison sites.
In Order To Get The Best Deal - Don’t Get Fixated On A Specific Model
Above all, the pricing of the lease depends on the model of the car.
You might find it difficult to negotiate rates if you’re fixated on a specific model.
On the other hand, if you are flexible enough to accommodate 2-3 models, you’ll get far better negotiable rates across dealers.
Which Car Terms Should You Negotiate?
As mentioned earlier, you can’t negotiate on every aspect but only a few selected terms.
- Capitalized cost – This is the cost of the vehicle (don’t confuse it with MSRP). It includes costs that you can negotiate.
- Money factor - The money factor is the interest rate on the funds used to finance the lease. It can't be explicitly compared to the interest rate of the car loan, but it can be used when comparing various lease offers.
- Mileage capping - It is important that you have a clear understanding of your annual mileage needs before renting a vehicle. When you know you're going to be past the mileage capping, you can negotiate a higher cap or a decrease in the extra mileage fee.
- Trade-in cost - If you're trading a car in to use the money for your lease down payment, you should either negotiate the highest possible value for your used car or sell it yourself.
You can access the best deals on car leases if you know how to negotiate with the dealerships.
Just make sure that you’re aware of the market rates and have compared available offers before negotiating.
While researching the options can be a bit inconvenient, it will surely help you save hundreds if not thousands of dollars over the term of your lease.