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Discussion about the car leasing process tends to be stubbornly focused on the potential merits of buying a car versus taking a lease contract on it. The issue with concentrating solely on this topic is that it ignores many other intricacies that may be of interest to potential drivers. The auto leasing industry is a lot more dynamic than its auto lending counterpart. If you understand some of the principles of microeconomics, you probably know about the importance of cash flow, which happens to be one of the main reasons automakers and dealerships tend to be more flexible when offering lease options. Here are five car leasing hacks you may be able to capitalize on while dealers and automakers are in pursuit of cash flow.
1. Know the One Percent Golden Rule
When evaluating lease deals, your goal should be to sign a lease contract with a monthly payment that is about one percent of the manufacturer’s suggested retail price. For example, if you are looking at a 2018 BMW 3-Series sedan, your goal should be to pay about $360 per month. However, this may be contingent upon paying taxes and other fees upfront.
2. Leverage the Down Payment Wisely
Keeping in mind the dealer is looking for cash flow, you may be able to play a down payment as an ace card up your sleeve. If your credit score is interesting to the dealer, contract negotiations will progress with the assumption that you will not make a down payment. Once you learn about the cost of the lease, you can use the cash to negotiate the cost.
3. Think About Upgrades
Depending on economic conditions and sales volume, some Orange County auto brokers may offer non-traditional vehicles from time to time. If you see a lease deal for a car you’re interested in, don’t settle for a standard trim package. Demand the premier model with all the extras. Even better, you should ask for more luxurious vehicles because this is what leasing is all about: being able to drive new, high-end cars you can upgrade at the end of your term.
4. Always Negotiate
Finance managers are bound by certain bargaining limits imposed by lenders. Leasing agencies have less restrictions and are more willing to negotiate. The terms and conditions you see on the website of dealerships that offer lease deals are not set in stone, particularly when you have good credit and a down payment.
5. Remember One Price Does Not Fit All Cars
Orange County luxury auto leasing agencies have financial goals beyond their estimated profit margins. By the time they put together lease deals, they are already thinking about how much they will make when you return the car at the end of the term. The amount they can potentially make on the lease agreement is not so certain, which means prices may be all over the place for certain models. If you see a car with a lease cost that is much higher than the MSRP, you may want to consider another one.
If you’re interested in leasing a luxury auto vehicle, get in touch with the trusted auto brokers at Below Invoice. We can help you find the car you’re looking for. Call 949-630-0303 to schedule an appointment.