More people than ever before are leasing vehicles with the average new car in America costing $33,560. A person is paying an average of $405 for that lease which is over $80 cheaper than the average car note per month.
Over 78 percent of FIATS, 70 percent of BMWs, 68 percent of Land Rovers, 67 percent of Mercedes Benzes and 64 percent of Audis are leased. If you are thinking about a car lease, here are some great tips to help you get the best deal.
Know the existing car lease packages
The first step to negotiating the lease is to look for published deals. These deals are often worked out between car manufacturers and local dealerships. They are often the best deals available and cannot be negotiated.
Learn the wholesale price
Assuming that you do not find a packaged deal that fits your needs, then decide what vehicle you want the most. Know the dealers or wholesale price of that vehicle. Use that price as your starting point and haggle your way up from there. Realize that the dealer will want to start at the manufacturer’s suggested retail price haggling their way down. While not the only variable that can be negotiated, the price of the car is the largest.
Negotiate the car lease down payment
If you are trading in a vehicle on your lease, then negotiate the value of that vehicle. Before arriving at the dealership, you should already have a knowledgeable estimate of the vehicle’s value. Again, expect the dealer to offer you less than the vehicle is worth and you to tell them a value more than the vehicle is worth. Haggle until the two of you agree on a figure in the middle. People are often better off selling a previous vehicle for cash and bringing the money to the dealership.
Figure the monthly payment
Now, subtract the value of your down payment including cash from the value of the potentially leased figure and see how much you will owe to lease the vehicle. Ask about any specials that the dealer can offer you including rebates from the manufacturer. At this point, the dealer will tell you the interest rate on your lease and your monthly payments. Do not accept their information but choose to do your calculations. Often, dealers love to sneak in hidden fees at this point in hopes that you will never notice.
Ask dealers to compare companies
Dealers usually have one leasing company that they love to work with on a regular basis. Make sure to ask them to check all their options. On occasion, some finance companies need new business worse than others and will give you a substantial break on the terms of your lease.
Negotiate the mileage
Once you have agreed on a price for the vehicle, then move on to the number of miles that you are allowed to put on the vehicle. The standard lease calls for 12,000 miles per year with each additional mile often costing 20 cents. Many people realize that is simply not enough to fit their lifestyle. Leases can be negotiated for almost any miles up to 33,000 miles per year. Even if you have to pay extra for those miles, it is cheaper to do it up front than at the end of the lease.
Consider the length of the car lease
You can also negotiate the length of the lease. This is especially important if you know that you will want out of the lease before the standard lease would be over. Standard leases come with large fees if you end the lease sooner than the expected date.