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Residual value lease6/23/2023 ![]() Negotiating this price downward is valuable because it narrows the gap between the purchase price and the residual value-the amount the vehicle will be worth when the lease ends. The trouble is, as Fuller told us, “Most consumers are payment shoppers, so they only look at the monthly payment.” Rather than agree to a lower purchase price, the dealership typically lengthens the payment period to bring down the monthly payment, which is how a 36-month lease can become a 39- or even 48-month lease.īut you can negotiate the cap cost downward, and it is to your benefit to do so, because that is what the financial institution acquiring the vehicle from the dealership will pay for the car. In the arcane patois that surrounds leasing, the price of the vehicle is called the capitalized cost, often shortened to “cap cost.” It stands to reason that if you negotiate the price of the vehicle down, the monthly payment and the overall cost of the vehicle lease should also go down. During negotiations, focus on the price of the vehicle, the price of the financing (yes, leasing is “financing”), and the overall mileage limit. If for whatever reason you didn’t find the special deal to be all that special, you should see about negotiating one that is. Is there an upfront payment required, and, if so, how large is it?. ![]()
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