Are you supposed to negotiate lease deals?

[Anonymous]

If they are advertised do you just take the deal? Do dealers have room to negotiate?

[Anonymous]

You can negotiate the value of the car, rate, term, end value. Basically everything. Just don’t lower one part and let them raise another without you realizing it.

[Anonymous]

It will depend on the manufacturer also. Some manufacturers have established non-negotiable residual values and base money factors (i.e., the interest rate where MF x 2400 = APR) for certain models, which will vary somewhat month-to-month, and based on the term/mileage of the lease. The key here is to structure the deal using the base money factor, without mark-up, and to negotiate % off MSRP, pre-incentive. Generally, those are the two key elements for negotiation. Best to check the Edmunds forums for up-to-date information on the money factor and residual for the make/model you have in mind, so you're aware if & when a dealership tries to mark-up the money factor (they will). Also be aware of dealer tactics to shift money around among the various moving pieces of the lease, and fees.

[Anonymous]

Yes, definitely negotiate. Use truecar as a starting point but you can often do better than that. People post deals they've gotten on edmunds.com too. I always check that.

Some brands offer better deals than others. I like luxury cars and mercedes as always offered better deals than Audi, BMW, Lexus and Volvo even though I may have preferred an Audi lets say, it was not worth an extra $100/month for a comparable car.

[Anonymous]

Anonymous wrote:Yes, definitely negotiate. Use truecar as a starting point but you can often do better than that. People post deals they've gotten on edmunds.com too. I always check that.

Some brands offer better deals than others. I like luxury cars and mercedes as always offered better deals than Audi, BMW, Lexus and Volvo even though I may have preferred an Audi lets say, it was not worth an extra $100/month for a comparable car.

Yes, some brands simply lease better than other -- these manufacturers inflate the residual value of the car so they depreciate less over the lease term (meaning you generally pay less as a lessee), and they hold their value well. So, a relatively cheaper lease is subsidized in some sense by a higher residual value, which is used to price the car for sale once it's off-lease.

[Anonymous]

Anonymous wrote:If they are advertised do you just take the deal? Do dealers have room to negotiate?

dealers put that out there like that because they know most people prefer to avoid confrontation. Saturn made a killing with their marketing, people walked in like zombies and got taken

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes, definitely negotiate. Use truecar as a starting point but you can often do better than that. People post deals they've gotten on edmunds.com too. I always check that.

Some brands offer better deals than others. I like luxury cars and mercedes as always offered better deals than Audi, BMW, Lexus and Volvo even though I may have preferred an Audi lets say, it was not worth an extra $100/month for a comparable car.

Yes, some brands simply lease better than other -- these manufacturers inflate the residual value of the car so they depreciate less over the lease term (meaning you generally pay less as a lessee), and they hold their value well. So, a relatively cheaper lease is subsidized in some sense by a higher residual value, which is used to price the car for sale once it's off-lease.

Mercedes leaser here - you can also get a better deal if you are flexible on model. Due to the residual value pp mentioned and also the interest rate offered depending on model (it is not called interest rate but something else I forget), certain cars that they want to get rid of may be available for less money than their more popular cheaper version. You should ask about this at the dealership if you're flexible - what are you trying to get rid of, what has the best residual and lowest rate right now.

[Anonymous]

Yes we just negotiated a lease deal.

[Anonymous]

Curious, if you are in Fairfax Country, is your yearly personal property tax on a leased car the same as one you own?

[Anonymous]

Anonymous wrote:Curious, if you are in Fairfax Country, is your yearly personal property tax on a leased car the same as one you own?

The property tax is on the full value of the car, same as if you were to purchase. Also, VA sales tax on a lease is based on the full, negotiated sales price of the car (not on the lease payments, as in some states).