As you shop for your car lease and visit one dealer to another to gather information, you will observe that there is a sharp difference in some lease programs over others even though the vehicle they are trying to sell is the same. It is mostly because one of the lessors is the finance arm of a vehicle manufacturer.
Most of the car manufacturers own automotive finance division to finance the sale of their product. Since the automotive company is making money on the sale of their car itself, it has the power to create better incentives than an independent leasing company that does not make any money on the actual sale of the car.
So, why not look for manufacturer lease program? It is very simple. All vehicle manufacturers have a finance calculator on their website. It is usually attached to the vehicle configuration tool. Along with special leasing program, the manufacturers also offer special rebates on new cars.
What’s the catch?
Are manufacturer leases better than dealerships? Not always. In fact, you might find the same car’s lease deal expensive at a manufacturer’s website.
When it comes to money factor and residual factor, they are rarely negotiable at the dealer level as they are set by the leasing company and they change from month to month. From these numbers, the car dealerships can wiggle the invoice price of cars to reduce the down payment or the monthly payment. So, you won’t be getting the best deals on the manufacturer’s website. The manufacturers are never going to advertise the rock bottom invoice prices on their website. They want to make a profit on top of the dealer’s profit.
Before going for the manufacturer’s lease, it is recommended to check all official dealers in your area. Instead of checking the manufacturer’s website, check the dealership websites for deals. This will give you a baseline on where they will be willing to begin the negotiation.
