What items in auto lease is negotiable? I heard you should haggle the price of the MSRP to that of a lower value as if you were buying instead of leasing in order to bring down the Capitalized Cost.
I heard that things like acquisition fees and certain document fees may be negotiable. If so, which ones?
Anything else is negotiable when leasing a car?
PS. They are offering a 39 month lease. Yet the car has a 36,000 mile, 36 month warranty. I rather have them cover the car for the full 39 months. And I dont want to pay for an extended warranty.
Any other leasing advise is welcomed particularly on negotiable items.
{ 3 comments… read them below or add one }
Most of the factors in a lease are controlled by the lease company or finance company used by the dealer. The dealer is not authorized to negotiate these factors such as acquistion fee, money factor, residual value.
The only major factor that the dealer can negotiate, as you already know, is price. The lower the price (capitalized cost) of the vehicle, the better the lease payment.
However, you should ask for the other factors and, knowing them, shop at other dealers or online lease sources to find better deals.
A dealer can’t give you a 39 month warranty because it’s the manufacturer that specifies the length of warranties on its vehicles, which is typically 36 or 48 months, depending on the vehicle brand. Actually, having only 3 months of exposure at the end of your lease is not very risky.
Here’s a web site that may help you with your other questions about leasing:
http://www.leaseguide.com/index2.htm
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Lease payments are based on the capitalized cost, which is the selling price of the car. The price of the car is negotiable, so you should negotiate this price first, then have the dealer write you a lease based on this cost.
To get a quote by phone, call a dealership and ask for the fleet or Internet manager. Ask if they have the car in stock for which you are looking. If they have it, tell them you have shopped around and you know what a good lease payment should be. Tell them you only want to pay $1,000 in drive-off fees and lease for three years. They will probably give you a quote that still has some wiggle room in it (room to sweeten the deal). Make a note of the offer and call another dealership. You can even make a second round of calls offering them the chance to improve their earlier lease quote.
As you call, remember to always ask if tax is included in their quote. In some cases, dealers quote a payment, without tax, to make it seem more appealing. If tax isn’t included, have them add it in and always work with the final figure. Also ask if the contract includes gap insurance. If not, you’ll need to budget to cover this expense yourself.
Once you get a good offer for a lease, you can ask them to fax you a "lease worksheet" that will show you all the numbers they have based your lease on. If they look good, tell the salesperson you will accept the deal based on the numbers on the worksheet. You now have a record of your agreement, not just a verbal promise.
Yes. Take ucantme’s advice and waste everyone’s time including your own. THERE IS NO SUCH THING AS A FLEET MANAGER! Unless you are buying a fleet of cars. WHICH MEANS MULTIPLE VEHICLES. No price from any dealer will be a real price over the phone, all that will happen is you will be low-balled at imaginary numbers that you can’t really purchase the car for. This wastes your time and everyone else’s time. Whoever tells you what you want to hear initially will be who you go to see so what does it matter? You can negotiate the price of any vehicle, whether you lease or purchase is up to you. If you have great credit , you can lease a car with absolutely no money down. YOU WILL GET THE BEST DEAL IN PERSON, WHEN YOU ARE ACTUALLY READY TO TAKE IT HOME RIGHT NOW. That’s how car deals are made. Offer them 2% over thier invoice cost minus all incentives that apply, as long as the car is not an extremely hot model, they’ll take the deal. Payments are payments, though, and the higher priced the car, the higher the payments. Stop wasting time and go to a reputable dealer and find someone who you like working with. The rest will take care of itself. PS DEALERS NEVER CARE WHAT OTHER DEALERS TOLD YOU. WE KNOW THEY’RE LYING ANYWAY.