Personal Car Leasing Advice

When obtaining a new vehicle through a lease agreement, it is important that you know what is what or you could risk being taken for a ride. Bearing in mind the full cost of all payments that you will make during the course of the lease agreement, negotiating as much of a price reduction as possible can end up saving you a huge amount of money.

Negotiating a personal car lease agreement can be very confusing, even for people with experience in negotiating car lease agreements due to the small monetary adjustments that may look like small increments but can make huge differences over the full course of a lease agreement. This is why it is sensible to do your homework before you even consider negotiating a lease with a dealer.

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 – After you have decided on how much you would be willing to pay and what length and type of lease agreement you require, ask the salesman to calculate your potential monthly payments. Once the salesman leaves in order to get the necessary details from their finance manager, then you must do your own calculations on the probable monthly payments. Work out your figures based on the same cap cost, residual and term as the dealer is using, therefore when they return you can check their numbers for errors. Any mistakes or differences will probably be due to extra hidden costs or possibly even a difference in trade-in value on your previous vehicle, so it pays to be aware.

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