Choosing Up-Front Savings Can Spoil a Great Lease Deal

Aug. 24, 2010 - PRLog -- TopCarLeaseDeals.com reports that over 50% of their shoppers cannot afford a down payment of $2,000. Nearly all of these shoppers are looking for zero down lease deals. What they don’t know is concentrating on getting $0 down is the quickest way to get no deal at all.
When shopping for the top deal on a new car lease consumers must compare multiple factors in order to get a great deal. For example, making no down payment often leads to higher monthly lease payments, higher interest, or a longer lease term. To find the best lease deal possible TopCarLeaseDeals.com recommends research, complete lease price comparison, and shopping multiple dealerships.
First, the consumer should learn the actual retail price or MSRP and factory invoice price of the vehicle they are interested in. This may not make sense at first, but lease prices are based on the purchase price of a new vehicle. As when buying, this price can be negotiated.
Next, they should shop for current leasing offers. These are often advertised by dealerships and manufacturers. Advertised leasing sales are usually the best deals available; however they are dependent on credit approval. If a new car shopper has a less than perfect credit score they are not likely to qualify.
Third, it is important to negotiate with more than one local dealership. The more dealerships a consumer compares, the more likely they will find the top lease deal in their area. Working with multiple dealerships also allows the consumer to encourage competition between dealerships by leveraging competitor offers.
When negotiating, the consumer should start with the capitalized cost. The cap cost is the complete price of the vehicle, or the price the vehicle would sell for. Basically, the consumer is negotiating the price the leasing company will purchase the vehicle at from the dealership. The lower the capital cost, the lower the overall cost of the lease.
Once the capital cost has been agreed upon, the dealer will deduct the residual value or estimated depreciation of the vehicle over the term of the lease. Similar to the capital cost, the residual value can be negotiated. Consumers are not only recommended to research residual value or resale value beforehand, but consider leasing vehicles with higher residual values. The more value the vehicle retains, the small percentage of the purchase price the lease will pay.
After all deductions are made the consumer will be presented with a lease price and the dealer will offer a financing package. Dealers make a commission here, so it is important for consumers to review offers closely before signing a contract.
Great lease deals don’t always mean a large down payment. Payments can vary; at times they can be as low as $0 down. However, TopCarLeaseDeals.com stresses that only concentrating on the down payment can lead to higher overall lease costs.
Consumers looking to learn more about new car leasing can visit TopCarLeaseDeals.com. Their pricing and advice service is 100% free with no-obligation to buy!

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Find the top car lease deals along with current financing offers. Requesting a lease quote through TopCarLeaseDeals.com will give you the best car leasing deals available.