subject: Personal Car Leasing Tips [print this page] Personal Car Leasing Tips Personal Car Leasing Tips
With a purchase that is of the magnitude of a brand new vehicle, it is always imperative that you will be getting as much as possible for your money. Even though with a lease agreement you will not be paying outright for a vehicle, you will still be spending a huge amount of money over the full term of the lease agreement. This is why a full negotiation process is essential.
Its all very well advising people that everybody should negotiate their personal car lease agreements before anything is signed, but it can be a difficult task, even for seasoned professionals. The reason behind this is that if you don't know the terms and conditions that have been modified, you cant know for sure if you are getting a better or worse deal, so you must know all the details of everything that you are negotiating.
So how do you successfully negotiate a personal car lease? Well, detailed below are some helpful guidelines to follow.
Let the salesman know your situation - Some apparent experts in the field of vehicle leasing suggest that you should hide the fact that you wish to lease as the salesman could use that knowledge to subvert negotiations on the cap cost of the vehicle. This writer advises you to do the opposite. In the current market it would be sensible to be completely up front with the salesman, whilst letting them know of your knowledge of the leasing system and your extensive understanding of the vehicle you wish to discuss and that you only want to talk about the full selling price instead of monthly payments.
Work out how much you are willing to pay - Before you start negotiating a price, you must calculate how much you would pay for the vehicle if it were new. A common misconception with car leasing is that the outright purchase price is not negotiable, this is simply not true. The outright purchase price is actually part of the lease and therefore can be negotiated on. As a rule of thumb, try to negotiate the cost of the vehicle up from the dealerships invoice costs as opposed to down from the MSRP. Also, ask the dealer if there are currently any rebates, discounts, factory to dealer incentives or advertised specials that would reduce your cap cost (the outright purchase price of the vehicle).
Check the prices - Once you have agreed on the deal, ask the salesman to work out the monthly payments. The salesman will invariably leave to speak to their finance manager, at which time it is sensible to make your own calculations on costs based on all the details you have discussed with the salesman. When he/she returns, check your figures with theirs to see if there are any discrepancies. There may be an error in the form of an extra charge or incorrect trade-in price with your previous vehicle.
