Parties to Negotiate With

Many people hate the idea of leasing a new car because of the struggle to get through the negotiations. Everyone would want to find a great deal but the negotiation process is complicated and understanding the few key areas will help you in securing a financially feasible lease agreement. If you try to negotiate the wrong items, you may confuse yourself in doing so and allow the dealer or the leasing company to take advantage of your weakness.

For your convenience, we are summarizing here what factors each entity controls so that you can get clear about which areas to be discussed with each entity.

People usually believe that dealer controls most of the factors that make up a lease deal. The reason people think so is that the dealer acts as the face of the leasing company most of the times. People are misunderstood that the dealer controls the rates a bank charges or mileage allowance. In reality, and as you can also see in the chart above, a dealer only controls one of the five important factors of a lease deal. By knowing which entity has the particular authority, your decision making becomes clearer and you can focus in on only contributing factor the dealer really controls i.e. the capitalized cost. You can later negotiate either directly with the leasing company or manage your Money Factor and Residual through the dealer.