Negotiation is key when dealing with any kind of salesperson, In fact negotiation is generally built into the price of all the things you see on sale in a car dealership. In this article we’re going to go over some of the best tips on how to negotiate a car lease agreement in St. Catharine’s.
Homework
The key to negotiate a car loan agreement in St. Catharine’s is preparation, the worst thing you can do is go in blind, so before you even go into the dealership there’s some things you’re going to want to research. Before you go in you’ll want to have a clear understanding of the car’s value, known as “capitalised cost” when talking about Leases, you’ll want to know exactly what kind of leases the dealership offers, you’ll also want to know what other dealerships are offering too, comparison is a key weapon when negotiating.
Price
There are two things you can primarily target when negotiating a lease agreement, the monthly payments, and the total cost. Negotiating the total cost may seem counter-intuitive since you’re not actually buying the car, however it may in fact be more beneficial than trying to negotiate down the monthly costs.
If there’s an obvious markup on the price of the car, then the monthly payments also go up, so if you can negotiate down that “capitalized cost” it will make everything go down with it. If you only target the monthly costs you’re most likely going to end up with an extended agreement instead. So you’ll pay less each month but you’ll be paying it for longer.
Interest
There is a second way to lower those monthly payments as well and that’s the interest rate. In leasing the interest rate is not normally expressed as a percentage but instead as an annual percentage rate (APR) usually expressed as a decimal, and the dealership is not required to tell you what it is, so you’ll have to ask. One more piece of homework to add to the pile is the current average market interest, known this will be key in negotiating a lower interest rate.
Mileage Limit
You can also negotiate the mileage limit, and you probably should, since going over your limit can be a serious financial issue. Before you go into negotiations you should have a clear understanding of how many miles you’re likely to need over the next few years, and aim for a limit well above that for some leeway, don’t underestimate how many miles you actually use over 2-3 years. Increasing the mileage limit will also increase the monthly cost, but that’s all part of the negotiation, and if it means you don’t go over the limit, it’s well worth it.