Vehicle price is a very important factor in car leasing. In fact, price should be negotiated when you lease, just as you would if you were buying. The lower the price, the lower the payments.
Although price is the only factor truly negotiable in leasing, look for special lease deals offered by car manufacturers that not only have a reduced price but also have a boosted lease-end residual value and low money factor (finance rate) — to create an overall great deal that needs no further negotiation.
Lease Price Is Very Important
We’ve already discussed how lease-end residual values are important when leasing, but front-end price is just as important. In fact, the combination of low price and high residual make the lowest monthly lease payments.
Many people who are looking to lease want to negotiate monthly payments instead of vehicle price. Unfortunately, this is not a good way to make a lease deal. It gives the dealer too many opportunities to manipulate the deal, especially when the customer has no understanding of how lease payments are determined. (See Lease Payment Formula for details)
It’s possible to negotiate a monthly payment that is within a customer’s budget but still be a terrible lease deal. The lease can be based on a price that is higher than MSRP, not lower, as it should be. There might be hidden charges that inflate overall cost, or a higher-than-normal finance rate that make it a bad deal.
Therefore, it’s better to negotiate price and let the dealer salesperson convert that price into a monthly payment amount for you. Alternatively, you could do the calculations yourself using our Lease Calculator. In fact, using a lease payment calculator is a good way of checking a dealer’s calculation for hidden charges.
The way to get the best lease deals is to find special lease offers from car companies that are ready-made deals and require no further negotiation
We are referring to the limited-time monthly special lease deals offered by car companies through their dealers that have attractive low payments made possible by price discounts combined with high lease-end residuals and low finance rates.
Customers can’t negotiate these kinds of good deals on their own since dealers can only negotiate price, not the other factors that make up a deal. Car companies control all the factors, however.
Such deals are well worth considering and nearly always rated “excellent” by LeaseGuide.com and are not “scams” or “dealer tricks.” The only drawback is that the deals may not be on exactly the vehicle model you want.
You can evaluate and compare your own lease deals with our Lease Deal Calculator.
You can find these good deals on car company web sites under “Current Offers” in the site menu bar. Or you can find lists of such deals on the Best Car Deals web site.