Whether or not you're considering a manufacturer lease, it's important to keep each of these cost areas in mind when you're negotiating. For example, if you can obtain a lower purchase price for the car without lowering the residual value, you'll pay for less depreciation and save yourself real dollars. The same kind of reasoning can be applied to each of the other factors. Naturally, a lower interest rate minimizes cost, resulting in less money taken out of your pocket over the term of the lease.
Negotiating a Lease
Lease deals can be negotiated, just as traditional purchases can, however, the complexity of the process can make it more difficult and confusing. Dealership salespeople have many ways to change different parts of a lease, including the fees, monthly payments, residual value, and even the purchase price of the vehicle. Here are a few things you can do to make the leasing process a little easier on yourself. (Many of the following suggestions apply to the buying process, as well.)
1.) Know how much you want to pay for the car. Although you're leasing, a purchase price for the car will be part of the lease contract. That purchase price should be the same price you would pay if you were buying. You can negotiate!
2.) Negotiate the price upwards from the dealer cost, not down from the MSRP.
3.) Don't discuss leasing with a salesperson until you know which car you want and what you want to pay, unless you're responding to an advertised lease.
4.) If you see a lease offer you like, and the dealership offers you the same car with additional options or features, know that the terms of the lease will be different from what was advertised. Factors such as residual value and purchase price will likely change, affecting either the monthly payment or the term length.
5.) When negotiating the lease, be prepared to walk away if you don't like the way the process is going or if you're not comfortable with the figures you're presented.
6.) Lease contracts are complex documents. Take the time to read all the papers you're asked to sign. Be willing to ask questions. Remember, it's your money!