I don’t recall ever seeing it said that a person can negotiate the price of a leased car --just like with buying-- before the lease documents are drawn up. Is it possible and if so is there any special dimension to it that’s not there in a purchase deal? Also, my lease was written for 45,000 miles but I will have only 35,000 miles on it when turned in. Can I expect the dealer to make a better new lease deal based on my giving him a car that will be worth more than it could have been?
Sure it is possible. All parts of the sale and lease are subject to change. However the dealer or leasing company may not want to make a change.
If you don’t like the deal, walk and try another dealer and/or leasing company.
Are you aware that leasing is usually the most expensive way of obtaining the use of a car and can be real problems if your needs change and need no car or a different car?
On a general level I understand your comment. I’ve paid $13,140 and the payoff is about $15,000. Over 36 months at 6% my payments would be about $60-80 more than my present lease payments. This is my first lease and don’t have a complaint about how it went other than that I didn’t negotiate the price of the car going in. My car (an '08 Pilot) is still under warranty and has a market value considerably above the payoff amount. I am free to sell it or trade it to any dealership or individual. I could not afford this car if it was a straight purchase deal.* (Maybe that’s your point!) I wish my need for an SUV would change but as a pro musician it never has.
*Oops…didn’t factor in what I could do with the money that exceeds the payoff. It could lower either purchase payment or lease payment.
The dealer will not give you more money for the car at the end of the lease due to the low mileage. The good news is they can’t raise the “buy out” price either. In this case if you still need this size and type of vehicle you might do well to arrange financing and buy the Pilot at the end of the lease.
Check with your local bank about car loan interest rates. I use a credit union which seems to have better interest rates and lower fees. Shop for a good loan. Once you have secured financing you might be well off to end the lease early and save a few more bucks that way. If not, you’ll be prepared to buy the vehicle and continue happy motoring.
Yes you can negotiate a lease. Lease is based on the selling price of the car. The less you lease, price of the car, the less your payments. So if you lease a car based on MSRP it will be higher than if you get them to drop the price down to invoice. You have to remember that insurance for a lease vehicle is higher than for a purchased vehicle, because you actually have to insure the amount of the vehicle you did not lease.
If you say I want to lease a vehicle for no less than $400 a month. The dealership will show you vehicles that they can lease at MSRP for $400 or less. Not at invoice.
No, when you turn in a vehicle it is based on the lease terms. If you turn it in with less miles it does not affect the lease value. The lease value has been predetermined by the lease. It lists penalties, over mileage, damage, wrecked, etc.
You can actually turn in a leased vehicle early, but there will be a penality. You can actually trade in your leased vehicle when you repurchase, or buy out your lease.
The interest rate on a leased vehicle looks less but since it is for a shorter term for X amount your payments usually end up higher than if you purchased. Your obligation to perform maintenance, leased you have to perform the maintenance as described in the owners manual and Insurance is higher. Do not forget if you miss maintenance even the small things like rotating the tires, cabin filter replacement etc you can violate the terms of your lease. With a purchase you can have your maintenance done by an independent shop and again your insurance is less.
The reason that leases look less is because they finance less. Makes no sense but it works. I had a woman bring in her Honda Odyssey to get a new one and the boss said she will understand the higher lease payment because the cost of the vehicle has increased. I ended up with a $2000 profit on the vehicle and made $650 commission.
ME personally I say never lease unless you are a business. An individual should purchase.
You say you’re a musician and need an SUV. Have you considered a minivan, or similar vehicle?
If you get one with the fold flat seats in it, you’ll have just about as much room in the van as a pick up truck with a cap on it’d bed.