Leasing Tips

Negotiations can be handled several ways. If the car is widely available, contact your local dealerships and solicit bids (as described in Step 5). Take the lowest bidder, call the other dealers, and see if they can beat that price. If not, you are at rock bottom.

If the car is harder to find, and you are on the lot, you can still refer to the lease payments you calculated at home. If the lease quote from your salesperson matches your estimate, you're probably getting a fair deal, but make sure the numbers and terms match your calculations. Be especially sure to check the down payment (we recommend a zero down payment), the term of the loan (we recommend three years), the monthly payment and the annual mileage allowance.

In the past, Edmunds.com recommended that the best way to get a good lease payment was to negotiate the lowest selling price for the car (using True Market Value pricing as a guide). Once that was set, you would get the salesperson to draw up a lease payment based on that figure. The thinking was that if the salesperson knew you were leasing, he would focus on the monthly payment while ignoring the negotiated price. He might even try to confuse you with leasing jargon. But the reality is, if you're happy with the down payment, monthly payment and mileage allowance, the purchase price of the vehicle is probably right. Keep in mind, however, that if you think you will want to buy the vehicle at the end of the lease, you should also check the "residual value" to make sure it is a realistic figure.

Whichever method you choose to negotiate, it is a good idea to ask the salesperson to fax you a worksheet, detailing all the costs before you go to the dealership. This will allow you to review the figures in a relaxed environment. Compare the numbers to those you have calculated and the True Market Value prices of cars listed on Edmunds.com.