Do You Know What to Negotiate When Leasing a Vehicle?

Know What You Can Negotiate When Leasing

New Car PurchaseLeasing a car is a big decision; you’re deciding on the vehicle you’ll have for the next few years and you’re committing to pay a certain amount of money every month for the whole time you have the car. You want to make sure you’re getting the best price on those lease payments, as well as the most out of your car and the dealership. So what can you actually negotiate and what is set in stone on a lease payment?

The Car Price

The only thing that’s ever really negotiable on a lease contract is the price of the car. The dealership owns the car and they can decide how much to sell it for. Effectively they could charge nothing or everything, but they want to charge the right price so that they make money and you get what you want. You may have some leverage here in a lease agreement because they’re not making anything if you walk away from a contract. A dealer or a sales person may not want to lease you a car as much as they may want to sell you a car, this is because many dealers or salespeople have set sales quotas to achieve. If the price isn’t right for your budget or fair for the vehicle, ask for what you want or walk away.

The Rest of the Lease

Everything else on the lease is set, not by the dealership but by a leasing company that they work with. These terms are rarely negotiable and asking for a better deal on residual, money factor, down payment, security deposit, or acquisition fee will be akin to beating your head against a wall; the dealer has no power to change these numbers.

Manufacturer Sponsored Leases

One way to effectively manipulate the price of a lease is to simply wait until there is a better deal. When a manufacturer sponsors a deal on a lease they can offer a better price because they can control all the different components of a lease agreement. The best deals are when both the dealership and the manufacturer are offering incentives or contributing to bring you the best deal. Look out for these, because if you’re not happy with the standard terms of a lease, they may just get you the price you want.

October 10, 2012 by Jamie Rettig