How to Negotiate a Lease on a Vehicle

Negotiating the terms of your new auto lease is similar to the steps involved in buying a car. The chief question to ask your salesperson is, "How much can you sell me the vehicle for?" Even though you are not buying the car, the price helps determine the terms of the lease. Other elements of the lease, such as the interest rate, are already predetermined by the bank.

Instructions

1

Research the vehicle you are considering for your new lease. Edmunds.com offers a valuable tool called T.M.V., or True Market Value, that estimates what you can expect to pay for the vehicle in your area. You can then use this number as a starting point with your negotiating.

Also, use Edmunds.com to determine the car's invoice price--the price the manufacturer charges the dealer--including the options you want.

2

Check for lease incentives and rebates offered by the manufacturer. Automotive.com and Edmunds.com both provide current lease and incentive information Key figures to obtain are the "money factor" (the interest rate used on the lease) and "residual value" (the price you can buy the car for at the end of the lease, should you choose to buy it). The money factor is significant because the lower the interest rate, the lower your monthly payments will be. And the residual value is a way the bank gauges how much value you take from the car while you lease it. The higher the car's residual value at lease's end, the lower your monthly costs.

3

Send emails to several dealers asking for lease quotes. Request a full breakdown of the lease's specifications, including capitalized cost (selling price), money factor, residual value, mileage allowed per year, duration of the lease and any acquisition fees and registration fees. Try to get all of the information in writing through your emails and keep accurate records of everything. This way, there will be no confusion when you come down to the dealership to sign the paperwork.

4

Take a look at all of the quotes you've received. Take the two quotes that are closest to the invoice price and email those two dealers back asking them to try and get you a price around $500 under invoice. (This probably won't happen, but they should come back to you with a number much closer to invoice). Also, try to have a free maintenance plan thrown in to sweeten the deal, if the vehicle doesn't already have scheduled maintenance included.

5

After choosing a deal you are satisfied with, arrange to stop by the dealership and do a final inspection of your new car prior to signing the lease paperwork. Check for any blemishes or scratches on the vehicle. If anything is found, have the salesperson write it on the due bill that they will be responsible for fixing or replacing the damage. A due bill is a bill of sale specifying any items--such as fixing a dent or installing any aftermarket accessories--that the dealership has promised to perform.