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1. Get informed. Chose the car you are interested in first and research its reliability and price. Next start talking price. Make sure you know what your trade in is worth and then negotiate your trade in allowance to the highest number you can get.
A 2 year lease usually means larger payments. A longer lease should have smaller payments, but could end up costing you even more if you try to get out of the lease early.
2. Negotiate the gross capitalized cost.
Try to negotiate a gross capitalized cost somewhere between the window sticker price and the dealer’s invoice cost (ask to see it). The lower the “cap cost,” the better the deal usually is for you. If the salesperson claims that he/she is not allowed to negotiate the capitalized cost, they are not telling you the truth so just leave and go to another dealership.
On the lease form itself, when you see it, compare the number you negotiated with the capitalized cost the dealer wrote down, to make sure that nothing has been added.
3. Fill in the lease “disclosure” form.
Ask the salesperson to fill in the rest of the lease disclosure form, front and back, and give you the figures. Be sure that you check the box near the top or middle of the front page in order to get a step-by-step calculation of the monthly payment.
4. Review the lease form.
Review the lease and ask for explanations of any items you do not understand. Make sure that you get credit for your trade-in allowance. Look for the line on the form titled “capitalized cost reduction.” The total amount should include rebates, cash down payment and trade-in allowance. If you have paid a down payment or deposit, make sure you get credit for it, too.
5. Take the lease home and read it carefully.
Once the lease is written, don’t sign it on the spot. Instead, ask for a copy to take home and review more carefully. A quick signature at this point could cost you thousands.
6. Compare the numbers.
At home, compare the figures on the lease with your notes about what the salesperson said the car would cost you. Look for unexplained changes or charges you don’t understand. Check the math. Look carefully at the lease term, the gross capitalized cost, the capitalized cost reduction, the residual value and the monthly payment amount (the “rent charge”).
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