WHOA! Never negotiate inside of a dealership. Never enter negotiations unprepared. Never pay a ton of money upfront on a lease, especially a down payment (i.e., cap reduction). With rebates of 9000, no need to make an out-of-pocket contribution. Use a portion of the 9000 to cover all upfront fees and the balance to cover a cap reduction so that DAS = 0. Otherwise, you could lose most or all of your out-pocket cap reduction in the event the vehicle is stolen or totaled. Remember, a car is an expense and a depreciating asset, not an investment. Use the money to invest in goods and services or other more meaningful and productive investments, particularly if you can earn the equivalent of an after-tax rate of return exceeding 3.00% (24 x .00125 ≈ 3.00%).
It’s nonproductive to waste hours sitting in a dealership negotiating. This can be a huge distraction. You need time to think things through and formulate questions within the privacy of your own home.
Rely on credible outside sources (e.g., LH marketplace and signed deals, Edmunds, TrueCar, etc.). Do your own research and establish a reasonable selling price in your market. Be sure to get a copy of the factory window sticker. Check for non-factory add-ons or dealer-installed options. And, if possible, eliminate those you don’t need or want. Get a list of all customer and dealer rebates/incentives including VIN#-specific discounts/incentives, if any. And, yes, the dealer has such a list. This leads me to suggest…
Craft a one-page lease proposal (sample below) and email it to the sales manager (SM) after making phone contact. Do not send it to a floor salesperson as they’re often Mickey D order takers and lack knowledge.
All numbers should be accurate otherwise, you’ll lose credibility. Negotiate via phone/email. Once an agreement is reached, ask the dealer for a review copy of the lease agreement and all contract addenda BEFORE you go to the dealer and sign. Moreover, it’s helpful to know the terms and conditions of the lease contract such as early termination liability criteria and purchase option criteria as well as lease amortization methodology and excess wear/tear criteria. If all is as agreed, tell the SM that you’ll come in to sign asap. You don’t want any surprises or dealer excuses like …. Oh, we made a mistake. That’s unacceptable and shouldn’t be tolerated.
If the dealer isn’t transparent or is uncooperative or showing signs of incompetence, WALK AWAY AND MOVE ON!
Leasing is time-consuming and requires a good deal of study and attention to detail. If you don’t have the time to commit, perhaps your best alternative is a good broker. There are some outstanding brokers on this website. However, if you’re willing to commit your time and resources, be sure to always control the deal. That can only be achieved with education which breeds confidence and increases the likelihood of success.
??? Let me know.
