10 Steps to Leasing a New Car

Edmunds.com

10 Steps to Leasing a New Car

Everything you need to know to make a great deal when you're leasing a new car.

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caskeez

Is it possible to learn what residual values are before buy ing a lease returned car?

philip17

You can call the dealer and ask for the residual value. Or you can search different lease calculators on the internet to get the residual value. There are several sites that list residual values.

When you lease a car, the residual value is listed in the contract and you have the right to buy the car at that amount at the end of the lease. Sometimes, a lease company will lower that price so they don't have to take the car back and sell it at auction.

I'm wondering why you want to know the residual value of a lease return. Is it so you can make a low offer to buy the car?

meegwell

Great job. Thank you for this comprehensive report. I plan to use every bit of it.

tina1123

My mom wants to lease a new veichle. She also talked with dealership about trading in her older Lincoln towards lease. They still offered her the same as if she didnt trade in, from what Ive reasearched. And she doesnt plan on keeping the lease when term is up. Is it just me that thinks this is the dumbest thing to do and the dealership is willing going to screw her?

Michaell

tina1123 said:

My mom wants to lease a new veichle. She also talked with dealership about trading in her older Lincoln towards lease. They still offered her the same as if she didnt trade in, from what Ive reasearched. And she doesnt plan on keeping the lease when term is up. Is it just me that thinks this is the dumbest thing to do and the dealership is willing going to screw her?

You can certainly use trade equity to offset some of the up front costs of leasing - acquisition fee, first payment, tags / license, taxes, etc. - but we don't recommend using the equity to make a "down payment" and reduce the monthly payment.

If the car is stolen or totaled during the lease, you are out that money.

vstarwa

Is it likely to negotiate a selling price of the vehicle to factor lease payments or is it always based off of MSRP (minus any dealer incentives)? when I go into a dealer, one of the first things they ask is if i'm looking to finance or lease a car. I feel that if I say lease, I lose any bargaining leverage.

lexusguy23

Michaell - Are there certain makes/models that consistently have the highest residual values? I currently have a Lexus but looking to shop around to other manufacturers. Thanks.

Michaell

vstarwa said:

Is it likely to negotiate a selling price of the vehicle to factor lease payments or is it always based off of MSRP (minus any dealer incentives)? when I go into a dealer, one of the first things they ask is if i'm looking to finance or lease a car. I feel that if I say lease, I lose any bargaining leverage.

You want to negotiate the price of a car, regardless of whether you are buying or leasing. A lower selling price will result in a lower lease payment.

Michaell

lexusguy23 said:

Michaell - Are there certain makes/models that consistently have the highest residual values? I currently have a Lexus but looking to shop around to other manufacturers. Thanks.

BMW tends to artificially inflate their residual values to maintain a reasonable lease payment.