There is nothing like being in control of your finances. Consumers need to be armed with facts before entering the arena prior to starting negotiations. There are many technical words that dealers use and you need to understand them ahead of time. You have to remember that there are many dealers vying for your business and they can use some confusing tactics to bamboozle you. So, here are my tips for negotiating a cracking lease deal.
Find A Reputable Dealership
In an era of information sharing, it is easier than ever to find out which dealerships have satisfied customers. You can find dealership review pages on many independent car websites as well as the reviews posted on GoogleMaps.
Get a Quote
Look at the companies website and find the “get a quote online” button. All good car lease dealers should have this facility. This gives you two advantages, firstly to help you work within your budget and secondly the lease dealer cannot lowball you.
Adding Up The Numbers
The components of a lease deal are quite complicated so the wise thing to do is learn how a deal is calculated and the terms that will be used. Let’s break it down.
- Sticker Price or MSRP:- This is the manufacturer’s price and you can negotiate this.
- Capitalized Cost:-You work this out when you take the sticker price and subtract any down payments or trade-in price.
- Residual Value:-This is the expected value of the car at the end of the lease term typically after three years.
- Depreciation:- The amount that the value of the car has dropped. You can check ou the expected deprecation by researching the typical loss with a variety of car sales companies.
- Term of Lease:- Simply the number of months your lease will run for. Usually, 36 months but it can be anything from 24-48 months.
- Money Factor:- The all-important finance charge which is the interest rate. It is expressed as a decimal number and converted into a percentage when it is an interest rate. Make sure you get the best rate in your state for the model you desire.
- Gap Insurance:-This protects you if the car is stolen. It should be included in the deal by the car company.
Knowledge Is Power
Go into the dealership with some idea of which car you would like to lease. You need to know what your budget is and what you need from your car. Ask yourself what you can live without when driving a car. You are less likely to be shown an unsuitable car in this instance.
As you are driving a new car it will come with all the manufacturer’s incentives as long as you stay within the mileage restrictions. You probably will not have to pay for the upkeep of the vehicle during the lease period. Ask about the maintenance schedule and which garages offer the service.
Once you have targeted a class of car you can look online to see if there is a car that fits the bill. It is easy to search the online inventory so you know if the car is available to test drive. Here in New Jersey, there is one choice that stands head and shoulders above the rest.
