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How to Negotiate a Good Deal on a Car Lease

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Comments

  • I'm in the research stages of deciding what my next lease will be. My current lease is scheduled for return in July. I recently graduated with my Master's Degree and what to take advantage of one of the College Grad programs that car manufacturers offer. I've looked and some of the dealer/manufacturer website, and most are pretty vague about what their programs offer. Has anyone leased a car through one of these programs? Which ones are worth looking into?
  • un1263un1263 Posts: 4
    The G lease will be zero down by summer. It usually happens in July or August but with the new Q coming out late summer, I wouldn't be surprised if they go zero down on the G in May or June.

    Late last summer Infiniti did a zero down 18 mo lease and sold a ton of cars.
  • billy3554billy3554 Posts: 147
    Truecar does not provide the lowest price possible for a vehicle. Truecar is a good place to start but the price a person pays should be lower. At a minimum, a buyer should reduce the Truecar price by about $300, to account for the money dealers pay Truecar for each sale.

    Truecar prices are essentially set by the dealer. While they may appear low they do not reflect any negotiation which usually results in a better deal.

    Carwoo is a better choice as it allows buyers to negotiate with dealers without disclosing personal information.

    While much of the preliminary negotiation can be handled over the internet or phone, the best deal will almost always be attained via a face-to-face negotiation with the dealer.

    The car buying process is indeed arduous. But it is equally difficult for the sales person who does not get paid if the buyer does not buy. In that regard the buyer has the upper hand.

    The buyer can always walk to another dealer. However, the sales person knows if a person walks they will not likely return. If the sales person believes a buyer is ready to leave most sales people will immediately provide a better price. Feet are a buyers best negotiation tool.

    There are no dealer fees which are mandatory. Dealer fees, by definition, are set by the dealer and are part of any negotiation. The only mandatory fees are those set by law or regulation.

    It really accomplishes nothing to attempt to hide things from the sales person such as a trade in vehicle. Sales people sell for a living and they deal with every imaginable type of buyer.

    To get a good deal identify the invoice price of the vehicle, any incentives available to both to the buyer and the dealer, dealer holdback, and use Edmund's forums for prices paid information. A good method to arrive at a price goal is to take the invoice less incentives less holdback and add a few hundred for dealer profit.

    Research the trade value using Edmunds, KBB, and NADA. Taking an average of these three is a good approach.

    Research the credit profile. Credit Karma is a good site to obtain a free estimate of a credit score.

    With the right information a person can always get a very good deal.
  • billy3554billy3554 Posts: 147
    Almost all advertised lease deals for an unusually low monthly payment requires a considerable CAP reduction. You cannot lease a $60K vehicle for $350 a month with such a reduction.
  • karhill1karhill1 Posts: 102
    That is true. It is simple math. If one leases a $60K vehicle and the residual value is 60 percent the amount which needs to be paid during the lease is $24,000. If a person negotiates the price to $56K, the amount is $20,000. Over a 36 month lease the monthly payment for this $20K is $555. The actual payment would of course be higher due to the money factor.

    Low advertised lease prices are designed to entice people to consider the lease. Anyone who believes they can lease a $60K vehicle for only $350 has not read the small print.
  • paperboycccpaperboyccc Posts: 67
    edited March 2013
    Yes, it's simple math. Mercedes was offering vehicles with around 74% residual and 13% off. On a $60K vehicle the amount to be paid in 24mos would be $7,800 or $325/mo plus the money factor. It's not common, but read the E-class thread for examples.

    Mercedes never advertised this deal - but several buyers were savvy enough to recognize it and negotiate it.
  • synovial1synovial1 Posts: 2
    I negotiated a lease for my fiancée on a new chevy traverse however, when she went in to do the paperwork they totally changed the deal from 544 a month including tax to 679 by telling her that the deal inalready made disnt include tax etc.. but it did, they where just being dishonest! Also, they sold her unnecessary tire ins and appetance package etc... That she felt she was forced into. I was originally going to use my 1k off lease incentive because I lease a BMW but, she decided to use usaa pricing instead and the deal has been done for over a week and the dealer called and said he wants to bring him a check for 1k or, a copy of one of my lease statements. I am not giving those crooks anything after they where so dishonest not to mention I am not on the deal at all! Now we are getting calls from gmac about her previous car asking why it's not paid off yet? This can't be legal or ethical and, I am so upset that all this is happening. I don't want to give them anything after they treated her this way. What should I do?
  • steverstever YooperlandPosts: 40,407

    A reporter would like to speak to a car shopper under the age of 34 who is unsure whether you should lease or buy. If this is you, please send your daytime contact info to pr@edmunds.com by Friday, May 2, 2014 at 10 a.m. PT/1 p.m. ET.

    Moderator
    Need help navigating? stever@edmunds.com - or send a private message by clicking on my name.

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