The terms of the best lease deals will offer you low-interest rates and no down payment to lease a car. You should begin by negotiating the capitalized cost, or the sales price of a car being leased. Start the negotiation but don’t tell the dealer you are looking to lease a vehicle. Negotiate the price as best as you can, and this price will later become your capitalized cost.
Another term that you should take into consideration is the length of the contract. While it may seem tempting to sign a longer lease for a lower monthly cost, you end up paying more over time with a longer contract. Additionally, a shorter lease will allow you to switch to a new vehicle sooner if your circumstances change
A popular method to test whether or not you found a good deal is the One Percent Test. If your monthly payment is less than or equal to one percent of the vehicle’s retail price, excluding the sales tax.
Essentially, you want to keep your monthly payments to $100 or less for every $10,000 that the vehicle costs.
Here are some other considerations to make when you are shopping negotiating for car lease deals:
Residual Value – This is the value of a vehicle at the end of its lease term. Vehicles with a high residual value are usually more affordable to lease.
Leasing Fees – Some manufacturers and dealerships add leasing fees to their vehicles. This can include a security deposit, acquisition fee, excess mileage fee, or more.
Money Factor – This is the financing charge you are required to pay on a lease. The money factor, like your interest rate, will be based on your credit score.