Do you believe in the saying, “everything is negotiable?” Unfortunately, there are some things that you can’t negotiate in a car lease. So, if you’re planning on leasing a car, it’s important to know what are these non-negotiable parts.
Car leasing is becoming a popular option because it’s a more affordable way to drive a new car. When you lease a car, you’re paying for the depreciation of the vehicle during the term of your lease. This means that your monthly payments will be lower than if you were to buy the same car outright.
However, before you walk into the dealership, it’s important to remember that there are some things that you cannot negotiate in a car lease. And what are these non-negotiable parts of a car lease?
MSRP
Whatever vehicle you choose, there’s no way you can negotiate the MSRP. That’s because the amount is placed by the car manufacturer, not the dealership. Likewise, MSRP is also known as the vehicle’s sticker price which is located on the car window as mandated by law.
The sticker comes with everything you need to know about the car including the standard features, other factory-installed options together with their price, and fuel economy ratings. However, they don’t include licenses, taxes, and registration fees.
Residual Value
The residual value accounts for the depreciation of the vehicle according to the industry data which makes it one of the non-negotiable parts of leasing a car.
When the residual value is lowered too much that would mean financial losses for the dealership. On the other hand, a high residual value would make the monthly payments unaffordable for customers.
Because this is directed by independent data it has to be just right for both parties to benefit from the deal.
Acquisition Fee
The acquisition fee works as the upfront charge for the lease. This is a standard payment required by the lessor which makes it non-negotiable. However, some dealerships may allow this to be payable into your lease payment if necessary.
Furthermore, the acquisition fee works like an origination fee to the lessor. The amount will cover the cost of processing your application for the loan including running a credit check for the customer.
Sometimes this fee is referred to as an administrative fee or bank fee. If you’re leasing a car, the acquisition fee could range from $395 to $895. However, this could vary depending on the vehicle or the leasing company. With that said, more expensive cars will have higher acquisition fees.
In addition, the acquisition fee will not be affected by your income, credit score, and other personal factors.
Negotiable parts of a car lease
We’re not going to leave you without giving you something you can surely negotiate when leasing a car. With that said, here are the negotiable areas of a car lease.
Sale Price
While you can’t negotiate for the vehicle’s MSRP, it doesn’t mean you can’t negotiate for a discount. For this reason, the best place to start is with a discount on the dealership’s selling price. The truth is, you should negotiate the price of the car when you visit a dealership.
This will help you save money and if you’re lucky, the negotiation could lower your monthly payment.
Mileage allowance
With the lease, you are only allowed a limited amount of miles you can drive for a year. For example, most leases offer 10,000 miles per year. How often you drive, there is a big chance that you’ll exceed the mileage limit for a year.
If this is the case, you can talk to your dealership and request a higher limit. There’s nothing wrong with this request.
Money Factor
While the money is always seen as non-negotiable, every deal starts with negotiation, and don’t hesitate to walk out of the dealership if they don’t agree to your terms.
This is the same with leasing a car. You can negotiate the monthly payment, down payment, and other related fees. If you think the offer is too high, try to compare it with other dealerships.
Just remember that when negotiating for a lower monthly payment, the dealer could increase the length of your lease or the interest rate to make up for the difference.
While there are many negotiable and non-negotiable factors when it comes to leasing a car, it’s important to do your research ahead of time. This way, you can be sure you’re getting the best deal possible.
In Conclusion
When it comes to leasing a car, there are certain things that are non-negotiable. This includes the vehicle’s MSRP, acquisition fee, and residual value. However, there are also some negotiable factors such as the sale price, mileage allowance, and monthly payment.
To make the negotiation process easier, it’s important to do your research ahead of time. This way, you know what to expect and what you can realistically negotiate.
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