Negotiating Your Car Lease

Introduction

Leasing a car is an attractive alternative to purchasing. It involves paying for the use of the vehicle for a specific time period rather than for ownership.

Upon deciding what you want and need in a vehicle, negotiating a car lease becomes an important step in order to get the best deal possible.

Benefits of Leasing a Vehicle

There are several benefits in leasing a vehicle:

1) Without having to make a down payment and with low monthly payments for leasing a car, you can put your money towards an item that does not depreciate in value over time.

2) Fixed transportation costs enable more precise budgeting.

3) There is lower fleet administration costs associated with leasing a vehicle.

Benefits of Leasing a Vehicle

4) The leasing company provides professional maintenance services for your vehicle.

5) You do not have to maintain relationships with various dealers.

6) You will most likely be driving a newer and more luxurious vehicle which rarely needs more than routine maintenance.

Negotiating a Car Lease

Before signing a binding contract, it is important to understand the fine print on the lease. The lease is supposed to outline capitalized cost, interest rate, taxes, the residual value of the vehicle and the depreciation amount. Acquisition and disposition costs are also typically included in the lease.

Also be informed of any charges associated with excessive wear-and-tear and if you are permitted to add accessories to the car.

Negotiating a Car Lease

Although certain aspects of the lease are rigid, you can still attempt negotiating to get the best deal possible.

1) Start with negotiating the lease price of the vehicle. This is where doing your research is advantageous. Before going to a leasing company, search up the manufacturer’s suggested retail price (MSRP) online for the car that you would like to lease. A good deal is if you are able to negotiate a price that is $500 - $700 less than the MSRP.

Negotiating a Car Lease

2) Leasing a car comes with certain restrictions such as a set number of kilometers that can be driven each year with a fee for each additional kilometer. See if you can get the company to increase the number of kilometers you are allowed to drive before you incur additional charges.

Negotiating a Car Lease

3) Inspect the vehicle that you will potentially be leasing – see if there is anything that is missing. If something is missing, use this as leverage for negotiation.

4) Inquire about any special rebates the company may be offering.

5) Ask if the company is able to pay for all or a percentage of the registration cost and taxes associated with leasing the vehicle.

6) Negotiate free or discounted maintenance services into the lease.

Conclusion

Leasing a car is a suitable arrangement for some individuals and provides several benefits. Doing research and negotiating can ensure a fair deal when leasing a vehicle.

This presentation was created on the behalf of http://www.questauto.com