Chapter 7: Leasing A Vehicle
your new vehicle-the process
- Dress well and be confident. A salesperson will approach
you. Know the vehicle you are looking for, the options
package you want and be prepared with a folder full of
information and price target decided in advance.
The goal of this step is to have the salesperson recognize
you as a serious customer who knows what they want.
- Specify the vehicle, model, options package and mileage
allowance that you want and discuss the your cost in terms
of capitalized cost (purchase price), residual value and
the money factor. Make sure they know that you know what
you are talking about and feel free to show them your
Your goal is to control the context of the negotiation.
Don't let them blur the issue by discussing monthly payments,
switching options, models and/or changing the subject
to talk about you and what you want.
- Continue your strategy to control the context of the
negotiation. By keeping the focus on the elements of the
deal that you know the most about, you take away the dealer's
ability to work in profits you are unaware of.
Your goal is to get them talking about the lease in your
terms. If you stick to your guns on these price factors
you may end up talking to a sales manager or finance manager;
somebody with more authority to cut a deal.
- Make sure you have a warranty that lasts for the duration
of the lease. Don't put yourself in a position where you
have to pay expensive repairs only to return the vehicle
at the end of the lease.
- Counter their arguments by returning to the information
you have at hand. Let them know that you know the invoice
price, the holdback, the demand, dealer incentives and
so on and that you have based your offer on an appropriate
capitalized cost, residual price and money factor. Tell
them the profit they will be making on your lease and
let them know you are not prepared to give them more than
This will re-affirm your position of knowledge. At
this point you will likely be talking with a sales-manager
or a salesperson aware of the limits from consultations
made on your behalf. They should counter-offer at this
Don't make any offers after the first one. It is tempting
to say 'meet me halfway and we'll talk', when the halfway
mark is your real target. This is a mistake. Tell them
"No thanks, it is still a little too high."
until they make a satisfactory offer or meet your real
target--then say you'll get back to them within a couple
of days. Let them know where to contact you if they
decide to go down to your opening offer.
Phone or visit a few more dealers and see if you can
improve on this lease offer.
If you've got the deal you want, the car you want and
the options you want, it is time to get the rest and
see the finance manager. Make sure that you get any
special offers that may apply to you.
Don't allow your negotiation to go bad at this point
by signing a bad deal with the finance manager. Remember
to watch out for low monthly payments. In a lease, the
dealer usually compensates for these with a low mileage
allowance, a high residual value or other fees, leading
to a higher total price in the end.
on your new vehicle!
TIP: When dealers compete for your business -
Compare dealer prices from multiple discount dealers
in your area using Edmunds.
With multiple price quotes you'll be able to get
the best deal on the vehicle you want.
It's the fast, easy and headache free way