Negotiating a Car Lease: What You Need to Know

Planning & Saving
on April 12, 2013

Negotiating a car lease is all about saving money. While many car shoppers think that negotiating terms for their new car lease is impossible, there are always ways to enter into a more affordable lease contract than what the dealership advertises.

Before you head to the dealership, read the following tips on negotiating a car lease:

Determine Your Leasing Period

You should determine your leasing period before you decide to sit down at the negotiation table.

Normally, the longer the leasing period the smaller the monthly payment. Leasing companies like to lease vehicles to clients who prefer to make payments over a twenty-four to thirty-six month period. Retaining a car for longer than four years is hard for most people, primarily because most car owners experience life changing events that require them to get a different type of vehicle or drive longer distances than the mileage cap allows.

The Cap Cost

The cap cost is the cost of the vehicle you intend to lease. Similar to a normal purchase, the price of the vehicle can always be negotiated. If a dealer refuses to negotiate on the price, walk out the door and head to another place to lease your vehicle.

It may be more difficult, however, to get a discounted price on a vehicle that’s in high demand. Stick to vehicles that you know dealers have a large inventory of that they need to get rid of.

Incentives and Discounts

Another way to reduce the price on a leased vehicle is to take advantage of any discounts or rebates that the car manufacturer is currently offering. These deals are normally advertised by the manufacturer, so you should have no problem with negotiating a lower cap price with dealer discounts or incentives. Just make sure you know what they are before you head to the dealership.

Understand the Contract

Understanding your lease contract is vital to saving money when leasing a car. Before you sign anything, read every little detail in the contract, even if takes you an hour to complete. If you don’t understand any part of the contract, ask the finance manager to explain it to you.

There may be hidden fees within the contract that you are unaware of. Reading over your paperwork will ensure that you are familiar with every fee that’s being included in the total contract price.

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