Tips On Negotiating A Car Lease
The financial benefits that come with car leasing have made it a viable alternative to getting a car. In as much as obtaining a car is concerned, a lease is a real deal. Negotiating a car lease can be a very daunting task for the savvy and experienced car buyers at the best of times. Much more to a novice or first-timer to the car leasing space, leasing can be a difficult, confusing, and time-consuming ordeal. Leasing is quite unlike a straight-up purchase of a car; it comes with its peculiarity. The terms and conditions of the lease deal may be manipulated by dishonest salespeople, on discovering that you can’t tell your right from left in leasing.
If you need a car but want to lease one instead of buying one, then you should get to know the more about car leasing. As negotiating a car lease will further lessen the cost of the car, you need not rely on discounts or promotional offers alone, making use of your persuasion skills may enable you to get a better bargain or help you dodge some additional fees.
Best Ways To Negotiate A Lease
- Determine How Much You Can Pay For The Car
Before pursuing any car lease negotiation process, know before time how much you’re willing to pay for the car and what is likely obtainable. Most buyers have imbibed the notion and myth that the advertised price of a car lease is non-negotiable. Perhaps, this might not be far from the truth. The purchase price of a car is one of the crucial parts of the lease deal. Therefore, a good rule of thumb is to negotiate a purchase price at which you’d be willing to pay. Never swallow in the ad price hook, line, and sinker, always bargain!
- Figure Out Your Starting Point
While negotiating, never bargain the price of a car down from the Manufactured Suggested Retail Price (MSRP). This is simply a recipe for disaster. Bargain the price upward from the dealer invoice cost. You can always view the dealer cost information from popular auto leasing inventory websites. This is certainly a great way to save yourself good dollars off the purchase price.
- Don’t Tip Your Hand
The golden rule of negotiation is to be the one in charge. Hold the balance of power at all costs. Before you meet the salesperson, you should know what car you want and what you’re willing to pay, negotiate the purchase price of the car first before discussing any leasing options with the salesman. However, the exception lies basically if you are responding to a specific make and model from a newspaper advertisement.
- Option And Features
Always have it at the back of your mind that adding additional options and features can and will significantly alter the terms of a lease. Though your monthly payment is properly shielded, other terms like purchase price and residual value may be affected. If you intend buying the vehicle at the end of the lease term, you should get yourself well informed on the lease-end implications of tacking on extras.
- Play Hard
Most people who purchase or lease vehicles have stacked this notion down to their hearts that dealerships hold all the cards during negotiations. Of course, that could be true, only if you allow them. Well, all thanks to the ever progressive internet, many consumers now have more options than ever. That the key rests with the buyer is not an understatement. In the course of negotiating, if you feel any discomfort with the way it is proceeding or how the salesman is strong-arming you, you can do yourself a favor and walk out. If they seem so anxious to seal the deal, feel free dropping your contacts. Giving another dealer a chance should be on your to-do list.
- Understand The Nature Of A Lease Contract
Lease deals are contracts. It comes with a lot of legalities. As with any contract, you are bound to stick to the terms and conditions that have been mutually agreed upon. Before sealing the deed with your name, be sure to familiarize yourself and read all the pages you’re required to sign. If there’s any part you don’t grasp much, feel free to ask for clarification. Finally, you should have an independent third party (probably your attorney) go over the lease with you in the absence of the salesperson. Always have it at the back of your mind that terminating your car lease early, for whatever reason, can cost you a lot more than the remaining balance you owe on the lease.
Terminating Your Lease Deal
Most car leasing deeds have multiple paragraphs of legal jargon dedicated to explaining your options should you wish to go for early termination. Only a few leasing companies can even allow you to terminate your car lease at any time throughout the term of your lease. Notwithstanding the reason behind you seeking to terminate your car lease, be it that you no longer wish to drive the car you were leasing, or financial problems, unemployment, it is possible to end your car lease before its maturity date.
However, you should understand that early termination is definitely not what your lessor will be fond of experiencing. Your leasing company prefers to lease the car out to someone who can continually make the payments until the end of the lease. You can decide to pay the early termination fee or go for a lease swap or lease assumption.
What Is Lease Assumption?
Lease assumption is a setting whereby you allow someone else to take over your lease to get out of your contract. Opting for a lease will make you incur zero penalties. For the person assuming the lease, there will be no need for down requirements, and shorter-term commitment is required on his part.
A lease swap is a lease assumption that occurs in both ways. You take over someone’s lease while they take over yours. This will take off all the hassles relative to bargaining over a full-term lease contract.