Dealer Lease Offers?

ted_baxter

I'm new to leasing but have done a lot of research, and there are two general principles I've read in a few places:

1. If you are going to lease, you still need to negotiate hard on the actual sale price of the car for residual value, money factor, money down, etc.

2. Some of the absolute best lease deals these days are offered direct from the dealer/manufacturer -- e.g. if you're willing to accept a base model from Honda or VW, you can get a better deal from the dealer-sponsored financing company than anywhere else.

So my question is whether those two points are mutually exclusive?

More to the point with a real example:

Honda currently has a special offer for a base model 2015 Odyssey at $279/mo for 36 mo with $2,999 down. Most manufacturers have similar deals at any given point for multiple base models.

In cases like these "special offers" direct from manufacturer, is there anything even left to negotiate?

Based on the premise of number two above, I'm assuming Honda has already gone as low as they will ever go, and no individual dealer can do any better on any of the given terms. You would just walk in and, assuming your credit rating qualifies for the deal, sign on the dotted line.

Is that right, or do you still need to negotiate sale price, final down payment, etc.?

kyfdx

ted_baxter said:

I'm new to leasing but have done a lot of research, and there are two general principles I've read in a few places:

1. If you are going to lease, you still need to negotiate hard on the actual sale price of the car for residual value, money factor, money down, etc.

2. Some of the absolute best lease deals these days are offered direct from the dealer/manufacturer -- e.g. if you're willing to accept a base model from Honda or VW, you can get a better deal from the dealer-sponsored financing company than anywhere else.

So my question is whether those two points are mutually exclusive?

More to the point with a real example:

Honda currently has a special offer for a base model 2015 Odyssey at $279/mo for 36 mo with $2,999 down. Most manufacturers have similar deals at any given point for multiple base models.

In cases like these "special offers" direct from manufacturer, is there anything even left to negotiate?

Based on the premise of number two above, I'm assuming Honda has already gone as low as they will ever go, and no individual dealer can do any better on any of the given terms. You would just walk in and, assuming your credit rating qualifies for the deal, sign on the dotted line.

Is that right, or do you still need to negotiate sale price, final down payment, etc.?

You are correct.... almost all good lease deals are through the captive finance companies of manufacturers. But, every lease you get from a Honda dealer is run through Honda Finance.

However, all deals go through the dealer. The ads aren't offers "direct from the manufacturer", they are just examples that may be available, using the current lease program in place. So, your premise and assumptions are a little off.

You still have to go in and negotiate your terms (selling price). The bank sets the residual and the money factor. Some makes allow dealers to inflate the money factor for extra profit, but I've never heard of a Honda dealer doing that. Also, the ads specify money down, but that's usually there to make that payment seem smaller. You can structure the lease however suits you (less money down and a higher payment, for example).

Also, don't assume that the advertised deal is rock bottom. Those deals almost always leave some extra room for a savvy shopper.