There is nothing like being in control of your finances. Consumers need to be armed with facts before entering the arena prior to starting negotiations. There are many technical words that dealers use and you need to understand them ahead of time. You have to remember that there are many dealers competing for your business and they can use some confusing tactics to entice you. So, here are my tips for negotiating a cracking lease deal in Miami.
Find A Dealership With A Great Reputation
In an era of easy information sharing, it is simple to find out which dealerships have satisfied customers. You can find dealership review pages on many independent car websites as well as the reviews posted on GoogleMaps.
Get A Few Quotes
Look at the companies website and find the “get a quote online” button. All good car lease dealers should have this facility. Why do this, firstly to help you work within your budget and secondly the lease dealer cannot offer you a low price.
Add Up The Numbers
The multiple parts of a lease deal are quite complicated so the wise thing to do is learn how a deal is calculated and the terms that will be used. Let’s break it down.
- Residual Value:-This is the expected value of the car at the end of the lease term which is usually after three years.
- Depreciation:- The amount that the value of the car has dropped. You can check ou the expected deprecation by researching the typical loss with a variety of car sales companies.
- Sticker Price or MSRP:- This is the manufacturer’s price and you are free to negotiate this.
- Capitalized Cost:-You work this out when you take the sticker price and minus any down payments or trade-in price.
- Term of Lease:- Simply the number of months your lease will run for. Often, 36 months but it can be from 24-48 months.
- Money Factor:- The all-important finance charge which is the interest rate. It is expressed as a decimal number and converted into a percentage when it is an interest rate. Make sure you get the best rate in your state for the model you want.
- Gap Insurance:-This protects you and the finance company if the car is stolen. It should be included in the deal by the car company.
Knowledge Keeps You Ahead of the Game
Go into the dealership with some idea of which car you would like to lease. You need to know what your budget is and what you need from your car. Ask yourself what you can live without when driving a car. You are less likely to be shown an unsuitable car in this instance.
As you are driving a new car it will come with all the manufacturer’s incentives as long as you stay within the mileage limitations. You probably will not have to pay for the maintenance of the vehicle during the lease period. Ask about the schedule and which garages offer the service.
Once you have targeted a class of car you can look online to see if there is a car that fits the bill. It is easy to search the online inventory so you know if the car is available to test drive. Here in Miami, there is one dealership that stands head and shoulders above the rest.