If you have ever bought a car from a dealership, you know that you can use all kinds of negotiation tactics to bring down the price. But, did you know that you can also negotiate a car lease?
There are a lot of aspects you can discuss during car lease negotiations before you sign the lease agreement. Understanding which variables and terms you can negotiate will help you get the best monthly lease payment for your car.
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What can be negotiated on a car lease deal?
Most people think that you can only negotiate when you buy a new car, but that couldn’t be further from the truth. There are certain aspects of the lease term and lease price that can be negotiated so you get the best value for money.
You can negotiate for a cap cost reduction. When you meet up with a dealer, they might try to negotiate your monthly payment. Instead, you should negotiate the final price and down payment, and then use that price as a capitalized cost.
One of the first things you should negotiate on is the money factor. This is easy if you have a good credit score.
Dealerships offering leases will negotiate the interest rate for lessors who are qualified. You will be able to get the best interest rate and access the best deals on your auto lease with a good credit score.
Value of the Trade-In
If you are planning on trading in a car, you can negotiate the price of that car. The easiest way to get a good offer on your trade-in and to give you a strong stance for negotiation is to service the car before the trade.
Price of the Buyout
Planning on leasing to purchase? You should try to negotiate the final price of the buyout before signing the lease agreement, as you won’t be able to do this at a later stage.
Limit on the Miles
Most leases come with a mileage limit. You should be able to negotiate this limit, especially if you know you will be driving a lot. This will save you money and spare you from penalties for exceeding the mileage cap.
What to Keep in Mind when Leasing a Car
Your monthly payment for a lease vehicle depends on a lot of factors. Here are some things to keep in mind when leasing a car to get the best deals possible.
The financial value of the car is the biggest factor determining the eventual monthly payments. Do your research and find a car within your budget, so that you do not end up struggling to make your payments.
As we have mentioned the mileage limit can be negotiated, so make sure you understand what type of mileage you plan on driving to get the best value for money on your vehicle lease.
The depreciation of the car will depend on if you owe any money towards the end of the lease. You should do your research upfront to see how much a certain car model will depreciate, and make your lease choice accordingly.
Tips for Getting the Best Car Lease
As we have mentioned, it is possible to negotiate certain aspects of your car lease, such as the residual value, cap cost and mileage.
But, you should also search for the best offerings even before you start negotiations. Here are some tips on how to find the best lease offers.
Find the best deals
Most dealerships have deals during the year. Do research into different dealerships and find if they have any deals or incentives on offer.
Lease a car that is in stock
Make sure that the vehicle you are interested in is in stock so that you do not have to order your car and pay extra fees.
Determine your mileage beforehand
By knowing how far you plan on driving during the lease agreement, you can negotiate for the best mileage limits on your lease contract.
Leasing a car is a great choice if you do not have the finances to purchase a new vehicle. Knowing which terms you can negotiate will help you to find the best deal possible on your new car lease.