Topic: Invoice cost important if Leasing?

[Fishman]

I am planning on leasing a small car and was wondering if it is worth it to get the invoice cost to negotiate my lease costs?

[Craig]

I've seen two schools of thought on leasing.  The first is to negotiate the entire deal, from the capital cost, which you can lower, to the money factor and residual, which you generally can not raise.

The second is only to negotiate the monthly lease payment amount, as that is the number that really matters.

I like to know how all the numbers work, so I belong to the first school.  No sarcastic remarks about how I flunked out of that school, too.

[Eugened]

I am not an expert on leasing (never leased a car myself), but I think having the dealer invoice might help you negotiate the capital cost (even though general beleif is that it is more difficult to do with a lease than with a cash deal)

[kavatski]

Yes, it's worth getting the invoice cost, because whether you're buying or leasing you still have to work out what the price of the car is that the deal is based on. The lower you can get the dealer to go on the actual price of the vehicle (the capital cost), the lower your monthly payments will be, same as if you were financing a purchase.

[Mark_n]

incentives are often different as well with leases, lease cash, interest rate etc.  Bmorton is right

[Brig]

Bmorton said, "The lower you can get the dealer to go on the actual price of the vehicle (the capital cost), the lower your monthly payments will be, same as if you were financing a purchase."

And don't forget that a higher residual will help, as well.  Then there's the interest rate, as well as your trade-in.

Have a look at how this shell game is played by going to www.carbuyingtips.com

He's a bit of a wingnut, but offers valuable information and a nifty spreadsheet to use when leasing or buying.  I caught a dealer trying to "slip in" an extra $700 for himself on a deal when I was shopping around a year or so ago.  Needless to say, I walked.

Brigitte

[Fishman]

Thank to Everybody the information is very much appreciated.

Fishman

[Sterling]

And don't forget that a higher residual will help, as well. Then there's the interest rate, as well as your trade-in.

Just remember that residuals are not negotiable on their own. The only things that allow a change in residual are a different vehicle or equipment, different km limit, or different term.