Consumers need to understand how lease deals are calculated before discussing it with a dealer. There are many technical words that dealers use and if you understand them already you are bargaining from a position of power. You are a valued and desired customer -remember that. So, here are my tips for negotiating a cracking lease deal.
Find A Dealer With A Good Name
Every good dealership has a website and a link to its location. It is simple, read the reviews and see how many satisfied customers they have had in the past. Hopefully, you will be the next happy customer.
Get A Few Quotes
Never settle for one quote. It is easy to find comparative quotes online. This is accepted and expected practice. No one wants to lose you to a competitor so if you understand the market price then you will not be low balled by the dealer/
Do The Math
Make sure you understand the terms used in your lease deal. . It goes something like this.
- Term of Lease:- This is just the number of months your lease will run for. Typically, 36 months but it can be anything from 24-48 months.
- Money Factor:- The all-important finance charge which is often known as the interest rate. It is known as a decimal number and converted into a percentage when it is an interest rate. Make sure you get the best rate available in your state.
- Gap Insurance:-This protects you and the car company if the car is stolen. It should be included in the deal by the car company.
- Sticker Price or MSRP:- This is the manufacturer’s price and you are free to negotiate this.
- Capitalized Cost:-This is calculated when you take the sticker price and subtract any down payments or trade-in value.
- Residual Value:-This is the expected market value of the car at the end of the lease term usually after three years.
- Depreciation:- The amount that the value of the car has dropped. You can check ou the expected deprecation by researching the typical loss with a variety of car sales companies.
The More You Know The Stronger Your Ability To Negotiate
If you want to lease the best car for the lowest price you have to know what you want to be included. Think about your driving needs and check which models are best suited. What features and spec are going to make driving pleasurable for you.
As you are driving a new car it will come with all the manufacturer’s deals as long as you stay within the mileage restrictions and warranty specifications. The manufacturer pays for the upkeep of the vehicle during the lease period. make sure you will fulfill your obligations so you do not incur unexpected costs.
Once you have found a class of car you can look online to see if there is a car that fits the bill. Make sure you search the online inventory so your dream car is available for a test drive. Here in Pensylvania, there is one dealership that stands out from the rest.