3 Common Mistakes Beginners Make When Leasing An Auto

Leasing can be intimidating for some people, but with a few tips you can negotiate like a pro and walk away from the deal saving $1,000's. I can still remember the first time I walked into a dealership and had to sit with the sales person to hammer out the deal. I felt prepared but still very nervous. I had this very same check list prepared and that gave me the confidence to get a fantastic deal, and have have been doing so ever since.

First: Make sure you know the facts about your vehicle

Nothing causes a dealer to smile more then knowing the person they are negotiating with has no clue about the actual value of the vehicle they want to lease. Get the facts about your vehicle from a reputable source like Kelly Blue Book. Know the actual value of the vehicle, not just the MSRP (Manufactures Suggested Retail Price). This will allow you to work with the dealer in getting the price of the vehicle down to what works for you. never be afraid to walk away from a negotiation if the sales person is not willing to work with you. Most times they will accept your offer after some struggle, as long as it truly is a fair offer.

Second: Talk to other financial institutions about the vehicle you want to lease.

It may be surprising to find out that car dealers and manufacturers do not lease vehicles, banks and financial institutions do. Some large manufacturers have their own financial companies to do leases and loans through, but the are separate from the dealership. All the dealership does is sell the vehicle to the lease company who in-turn leases the car to you. This means that you are not only subject to the dealers financing company, you can contact your bank or credit union, or even one of your major credit card companies, to see if they have a branch that deals with leases. Often you can get a better deal with a company you have an existing good relationship with, then with the dealers finance company.

Third: Beware of the add-ons to the deal

Once the dealership negotiates the price with you and there is an agreement on that, they shuffle you off to the finance team. They wrap up the legal paperwork and try to include add-ons. They will try to sell you an extended warranty, which you don't need to pay for up front Even if you intend to keep the car past the length of the standard warranty, you can always purchase an extended warranty near the end of the standard warranty, so why pay for it up front, keep the money in your pocket. Other add-ons include, tire and rim protection, tinting, etc. Just know that everything they sell you turns into a large commission for them. So if you do see a reason to purchase one of these, they are also negotiable. If you keep mind of these items, you will be on your way to a successful negotiation with the dealership. These few beginner tips can end up saving you $1,000's over the term of your lease, that is money you get to keep in your pocket.

To leasing a car on your own terms

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