Everybody wants a good deal, but how is finding great car lease deals different than buying cars? The truth is, unless, you are willing to pay cash for a new car, there really isnâ€™t much difference in shopping, bargaining and making the decision. Financing, whether it is through the leasing or buying of new cars, plays a huge role in the successful negotiation of a good deal. On the surface, it may seem like paying cash for a new car puts things in the buyerâ€™s favor. This is simply not true.
Financing adds a very important strategy to your bag of negotiating tricks when you visit your dealer. When you pay cash for a car, there is one and only one negotiation tool â€“ sales price or capitalized cost of the car. Paying cash certainly simplifies the purchasing process, but it also limits your bargaining capabilities. Financing, especially if you have good credit, gives you more tools to take to the bargaining table. With 0% interest rates on new cars for up to 60 and even 72 months, you can really put your dealer to work in getting you the deal that you want at a payment you can comfortably make.
The bottom line is that itâ€™s not so much the final price of the car, but your monthly car payment and total out of pocket costs over the life of the car loan. Leasing gives us even more flexibility and negotiating tools when shopping for new cars, but how many of use these tools to our advantage? Leasing cars adds a whole new arsenal of tools to our negotiations with the dealer. So, how do you find great car leasing deals in the first place?
Car leasing deals are much like great car financing offers. They are based mostly on incentives. Car manufacturer can tweak a number of financial factors to offer an attractive lease payment. These low monthly payments are the result of high residual values, low money factors and reduced capitalized cost (sales price of the car). It is not necessary for us to know the entire car leasing terminology to get a great car lease deal. Whatâ€™s important is how much weâ€™re paying to lease the car for 2, 3 or 4 years. What we need to look for is a low monthly payment, with little or no out-of-pocket expenses in the form of down payments, deposits or other fees. In general, a 36-month car leasing deal should yield us an average monthly payment that is 25 â€“ 40% below what it would cost to finance the same car over the period of a 60 month loan. Donâ€™t forget to average-in any up-front costs into the advertised monthly payments. Low, advertised monthly payments can sometimes be traps for making us think weâ€™re paying less for the car than we really are. For example, a $300 36-month lease payment averages out to be $350 if we had to pay the dealer $1800 in the form of a down payment. Generally, it is better to avoid up-front costs in a car lease. Tell your dealer that you want a low monthly payment with nothing down. Before we even visit the dealer, though, we need to know where to find these special offers from the car manufacturers:
Every month, you will find the best car lease deals advertised on the manufacturerâ€™s website. Toyota, Honda, GM, Subaru, etc., etc., usually publish these car lease deals under the heading, Shopping Tools/Special Offers, or something similar. Read the full print of these offers to find the details; ie MSRP, Total Cost of payments, mileage allowance, monthly payment, term, etc., etc.. Armed with this knowledge, go to your dealer and ask for a better deal. Finding a great car lease deal is that simple.