Do you know what a good lease deal is when you see one? Where can you look to find the best deals?
Having the ability to recognize a good or a bad deal is an important part of leasing a vehicle. While a low advertised rate may seem like a great find, that alone doesn’t equate to getting a good deal.
Negotiating a lower selling price or finding a low cap cost is a great way to ensure a good deal. Finding a vehicle with a high residual value will lead to a good deal for you. A low money factor or lease rate will ensure you’re on the road to getting a good deal.
The best way to ensure a good deal is to find a good balance between the elements above.
You may find a vehicle with a high residual but a slightly higher money factor that could still be a good deal.
A vehicle with a lower money factor can help to offset a lower residual.
While at first glance a lower monthly payment may make you think that a vehicle is a good deal, that’s simply not the case. You need to take all the above factors into consideration.
Negotiate on the Selling Price
When negotiating the price for a vehicle it’s in your best interest to negotiate based on the selling price and not a monthly payment. Here’s why.
Say you’ve gone to a dealer to let them know that your budget is $500/month. If the vehicle you choose to lease comes in at $480/month a dealer could add items or find a vehicle with different features to get to your ideal payment.
There’s nothing wrong with getting a bit more vehicle for the same budget. But if you can save a few dollars a month and get into the vehicle you want at a lower price point, is that a bad thing?
If you do decide to negotiate based on your monthly budget, we recommend setting your budget lower so that you have additional room to negotiate.
Where to Find Good Lease Deals
There are a number of ways that you can find a good lease deal.
- Promotional offers in newspapers, TV and the internet. Brands will typically advertise great deals to consumers in hopes of getting them into a dealership.
- Manufacturer’s Websites. Vehicle manufacturers will typically offer special limited time offers on some of their models. They’ll either discount the price, boost residuals or lower the money factor (interest rate).
Manufacturer sponsored lease deals are usually better than deals you may be able to negotiate yourself. While there are certain restrictions for trim levels and allowable mileage, these deals are sometimes hard to pass up.
Ensure that you’ve checked your credit score before you go to a dealer. In order to get their advertised rate you’ll need to have great credit.
Summary
By negotiating on the selling price of the vehicle and keeping an eye out for manufacturer’s deals you’ll ensure you get into a great lease. While some advertised deals may be limited to trim levels or features, they are typically deals that will be better than you can negotiate yourself.
But remember, it doesn’t hurt to ask!
