This article going to be talking about how to negotiate a lease like a pro in 2020 and how to get the best price for your lease. Let’s get into it. There are two things that go into negotiating a car lease.
So let’s talk about the first part.
Research before negotiate
This is probably going to be the most important thing to take away from this article and this the research. You need to spend around 80% of your time researching the deals. Don’t expect to go up to a car dealership and expect to lease a car for whatever you think sounds right. Negotiation is a verbal dance that you playback and for where both parties meet at a mutual agreement.
Not all car salesmen or scums or sharks. There are a handful of car salesmen that brutally honest and they’ll tell you the best price that they can give you. You want to save as much money as you want to and they want to make as much money as they can.
So if you look at it this way as a customer, if you have not done the research and know what the fair price is, you have no leverage in negotiation. As a car salesman, they know their numbers. They know how much they bought the car for and they know how much they have to sell it to make it a profitable business.
But you might be asking yourself “What do our research?”. This is the exact order that I take or researching at the car lease. We need to focus on what others are getting. To know what others are getting, you need to jump into car forms like Edmunds or Lease hacker.
How to research
Before even start, we need to look into what car we should get. We need to look at what other cars or people are leasing. The reason why we need to look at what other deals people are getting is that it gives us a baseline to work off of. Say you have decided that you wanted to lease a Lexus RX350. If nobodies are leasing those cars and talking about it, then most likely these cars are not really leasing too well or to show off the deals.
So you want to find a great deal usually want to see what somebody has already gotten. It is going to be that much easier to copy that deal at other dealerships. When you are looking at other people’s deals, you really have to look at where they got the deal. Because living in Southern California you can lease a car for a completely different price compared to someone who lives in Washington. Lease deals can be completely regional.
Terms of the lease
Just because somebody posts their deals you really have to double-check the work. It is like blindly investing in something that you have no clue about. The main thing we need to look into other people’s deals is their terms and the money down. Some deals look great when the terms of three years and seventy-five hundred miles of the year. The ideal terms are usually three years and a minimum of Twelve thousand miles per year. It’s better to have everything loaded into the lease because you can put as much money down as you want to in a lease to get a monthly payment that you’re happy with. But it’s really going to be difficult to compare other deals.
Another reason why you should not put money down is that in case if you get in a car accident or the car stolen or totaled, the money that you put into it is completely lost. You are going to be saving a little bit of money on a down payment.
Each car has different models within a particular model. For instance, say Honda civic. It has the LX , EX, and XI models. We need to find the base model of cars separately to have the best deals. So it is really up to you to figure out what really matters to you. Is it the price or the features of the car?
After researching which deals other people are getting, then look at the rebates for the cars. There will be manufacture rebates that can be applied to all dealerships and there will be dealerships that have their own rebates on their own cars as well. To look for rebates, you need to go to the manufacturer’s website and they typically list a section where they have deals and rebates and they show you what is available for each model.
Most of the time when you are looking at other people’s deals, this typically lists out what rebates or discounts that they apply to price. There also be rebates for people who are members of different things like Costco, Triple-A or the military. So depending on where you work or what memberships you part of, you may have personal rebates just for you.
The last part is to research is the numbers and specifically is the MSRP and Residual Value of the car. These numbers usually play the biggest role when factoring a lease. These two numbers are important because when banks are looking to give out leases, these are what they are looking at. The residual value of a car is typically what a percentage of a car will be worth after the term of the lease. As an example, you look at a car and it has a residual value of 60% after three years. This means that if you have a car that costs $ 30,000, after three years will be worth $18,000. You need to negotiate a car price as close as possible to the residual value. Because the difference between that price that you pay for and the residual value will be your monthly payments over the term of your lease.
So the best car leases will have high residual values and Lots of discounts. This is the key to getting the best deal. The amount of time you spent on researching will depend on your commitment.
How to Negotiate a lease
After the research, start to emailing a bunch of local dealerships to get a quote. You need to be strict about your negotiations via online and texts. The reason is that it’s the most efficient way to get the best deal. When you step foot into a car dealership, you’re in a room full of sharks. You’re playing into their home court. Car salesman, they do this day in and day out unless you are a very skilled negotiator or a car salesman yourself. They have little tips and tricks to keep you longer to wait you out and give you time restraint to purchase the car.
Another reason not to go to a car dealership to negotiate is a big waste of time. Time is valuable and spending hours upon hours at each dealership to get the best price is a big waste of time. Another reason what communicating via email so beneficial to you is that you have the time to think about your next action.
When you write your first email, simply get straight to the point. I’m going to buy (car type) and I’m looking for a lease with these terms (amount & term) and this is the model of the car I’m looking for. And say that you are willing to send a paper today if you could find the seller or the best price.
Only do this when you are willing to buy. Don’t start negotiating the prices on recent advances or Days in advance. Do it right when you are ready to sign the paperwork. There is no point in wasting your time or other people’s time.
Tips to negotiate
Be respectable –These are people too and they need to make it live. You want to get the best price and they want to sell at the best price. The worst thing you can do is to be a complete jerk. Save some face and kill them with kindness. People are more willing to work with you when you’re calm and respectable. It is really up to you.
What you are focusing on? When buying a car, you don’t want to be focusing on the car payment. But when you are leasing a car, that’s what you want to be focusing on. You do not need to protect the packages or anything else that they are trying to upsell you towards the end of the negotiation.
The only thing that you need to consider buying is the wear and tear insurance. Even wear and tear protection is usually negotiable.
Work with a broker– These are people or apps own a business that specializes in negotiating car deals or already have pre-negotiated car deals. You can usually find car brokers from word of mouth or forums on the internet. Lot of times the brokers and salesmen typically post the best deals that they possibly can get.
Another thing to do is to also contact people who have gone deals from them as well. That is another way of researching prices and your negotiation power.
The last thing you want to do before you sign anything is to read over the paperwork. Make sure all the numbers line up, how much they’re going to charge you, what is the wear and tear terms of the vehicle. Know exactly what is going into your monthly payment. If anything is wrong or incorrect, it’s best to get a fix there before you sign anything.
I hope you know how to Negotiate a lease now. All the best.