Negotiating a car lease can save you tons of money. Understanding the jargon and what you can/can’t negotiate are just two of the tips to negotiate like a pro…
7 minutes
03.17.2023
In these challenging times of rising interest rates, it has never been more important to negotiate the best terms possible when leasing a car online.
Leasing a new car — rather than buying — can still save you money but many people looking for a new car don’t even realize that you can negotiate some of the terms of the lease.
You may be able to double down on the money you save or afford a more expensive car with a few negotiation tips from the pros. And, remember, while lower monthly payments are important, they’re not the only consideration during the negotiating process.
Let’s take a closer look at the following nine tips for negotiating a car lease so that you can nail the lease you want…
The terminology used in car leasing agreements can get confusing so the first rule of negotiating a car lease is to brush up on the jargon.
There are many potential areas for confusion but these are the terms you’ll probably hear most often:
You probably wouldn’t buy a new laptop or smartphone without doing some research. The same applies to car leasing. To negotiate a new car lease effectively, you need to know what’s available on the market.
Fortunately, you have the tools to compare deals right in front of you. Google will help you identify the best current lease deals.
Start making a shortlist of what’s available (and where) for your favorite makes and models. You may be lucky and find special lease deals available on models that the manufacturer wants to promote or the dealer wants to move on.
When you’ve whittled down your choices to a manageable number, call the relevant dealers to confirm what’s available and start evaluating which is the best for you.
It’s important to understand how far and how often you’ll drive the vehicle you lease.
Just as you might do when choosing phone or internet packages, you need to understand your intended usage to avoid paying extra for something you don’t use or when you exceed limits.
Car leasing companies tend to place an emphasis on the potential depreciation of the vehicle when calculating lease terms. So, they often limit lease deals to 10,000 or 12,000 miles annually.
If you are unsure of how many miles you drive per year, you may be opening yourself to paying more than necessary. For example:
Understanding your mileage can help you negotiate a more relevant lease deal for your usage.
So, what can you negotiate in a car lease?
When a potential car buyer walks onto a car lot, the salespeople are expecting some kind of negotiation process. The salesperson will likely know within the first five minutes of the conversation whether you’re likely to negotiate and what their lowest offer will be.
You can’t negotiate everything with a lease but there may be some flexibility with the following elements of your agreement:
By negotiating your lease deal, you may be able to get an affordable monthly payment without extending the lease term.
It’s worth reiterating how important your creditworthiness is. Leasing companies want to minimize their risk. An excellent credit score puts you in a stronger negotiation position with the leasing company. If you’re not sure about this, find out more in our article about credit scores for leasing a car.
Unsurprisingly, perhaps, special lease deals are more difficult to negotiate as they’re usually discounted already.
For instance, you’ll probably find it tough to negotiate a mileage cap on a special manufacturer lease deal.
You usually can’t negotiate the following elements of a car lease either:
Remember, you’re not getting a great deal unless it’s a good car that meets your needs and your budget.
You’ve seen that there are many factors to consider when negotiating a car lease and you should examine each proposed agreement carefully to analyze opportunities for a better deal.
It’s not just the monthly payments that matter but the lease’s total cost (including down payments, fees, interest payments, etc.). If you intend to buy the vehicle at lease-end, the buyout price is also important.
Car salespeople can be tricky to deal with and may present a low monthly payment as an amazing deal when, in reality, you’re being charged in other ways too. Be prepared for this by using the strategies that car salespeople hope you don’t know.
Note that the best deals usually come about by minimizing the difference between the capitalized cost and residual value. Not all makes and models depreciate at the same rates. So, negotiating the cap cost and finding vehicles with high residual values after their first few years of depreciation can help you secure the best deal possible.
Different manufacturers and car dealerships use different methods to make deals more enticing. These may include different upsell and cross-sell methods, such as prepaid maintenance deals.
There may also be special offers and freebies available that an enterprising salesperson can throw in — don’t be afraid to ask for them as the salesperson will want to earn commission and will be keen to make a deal.
Conversely, unnecessary add-ons may add to your monthly costs and potentially scupper a deal. Do you really need the extended warranty? Take your time and understand exactly what’s necessary and what’s not — and what you’ll be paying extra for.
Choosing a vehicle in stock is not only likely to get you your leased vehicle quicker; it may also get you a better deal.
It may be tough to find the precise make, model and color you want in stock but if you can be flexible, it can help you negotiate and save a significant amount of money.
The dealer doesn’t want cars sitting on the lot for months on end so it’s often easier to get a better deal on cars in stock.
Carefully review the entire lease agreement, including the fine print, before you sign it. Pay special attention to the following details:
Remember, you’re signing a binding contract — and that should not be a process you rush.
Leasing a car online can help you minimize the costs of driving the car you want — provided you are prepared to negotiate. To do that, you need to shop around, understand what you can and can’t negotiate, get to grips with the jargon and the fees, and check the finer details of the deal.
With a FINN car subscription, you can avoid the hassles of negotiating a car lease.
Our fast and flexible service approves deals in minutes, arranges doorstep delivery and takes care of insurance, registration and roadside assistance — with no down payment necessary.
1. Meet your perfect car
Pick your next car and select the term and mileage package that’s right for you.
2. Get approved in a few clicks
Submit your information and get the green light in under five minutes.
3. Enjoy free delivery to your home
FINN delivers your new car right to your door so you can focus on the road ahead.
4. Just hit the road and swap when you’re done
All that’s left to do is drive. When your term is over, you can return the car and pick out something new, or simply walk away.
1. Meet your perfect car
Pick your next car and select the term and mileage package that’s right for you.
2. Get approved in a few clicks
Submit your information and get the green light in under five minutes.
3. Enjoy free delivery to your home
FINN delivers your new car right to your door so you can focus on the road ahead.
4. Just hit the road and swap when you’re done
All that’s left to do is drive. When your term is over, you can return the car and pick out something new, or simply walk away.