Even though owning a luxury sports car may be a far-fetched dream to some of us, leasing one is just a dealership and a signature away.
If you lease a luxury car, there are certain things you should know before doing so.
Consider Leasing A Pre-Owned Vehicle. If you lease a pre-owned luxury car, you won’t have to worry about the depreciation value as much. You may also have lower monthly payments. The overall value of the vehicle may be lower because the car isn’t brand new.
Negotiating Like A Pro
Some tips on how to negotiate a lease with a dealership like a pro are:
Understand Lease Terms and Leasing Language
Study different terms, like money factor and capitalized cost, and understand their meaning. If you study the different lease terms, when you’re talking with a representative from the dealership, you’ll understand what they’re talking about and be able to speak their language.
You can also talk with the leasing specialist to learn terms and understand how a lease works.
Know What You Can’t Negotiate
There are certain things you can’t negotiate. For instance, specific fees charged by the car dealership for taking care of their end of business and the vehicle, such as the registration fee, acquisition fee, the residual value of the vehicle, and any taxes associated with the lease.
Know What You Can Negotiate
You may negotiate the lease terms, the buyout price, mileage allowance, some fees and costs, like the gross capitalized cost, and the vehicle price, if you know what the dealership paid for the vehicle and the overall value of the vehicle. Consider the mileage already used on a vehicle if it’s previously used or pre-owned and any wear and tear on the vehicle.
You can also negotiate the documentation fee, advertising fees, and other fees the dealership might try to charge for their services or for additional services.
Negotiating the capitalized cost of a lease vehicle is challenging, but possible. The goal is to minimize the difference between the residual value and capitalized cost.
Knowing the car’s overall value will help negotiate the price. Check Kelley Blue Book to learn a vehicle’s value.
This will not only get you a great deal on a leased vehicle, but could also lower your monthly payments.