Quote:
Originally Posted by Socal2025
I am always shocked that people focus on monthly payment when negotiating a car lease. When leasing a car you pay depreciation plus interest for keeping someone else's property for a certain period of time. Always focus on the final negotiated price of the car (just like you would when paying in cash). You should agree on a price that is lower than MSRP. If the MSRP is $10,000 and residual 60%, you will pay $4,000 plus interest (money factor) during the lease term. Assuming $500 down and 0% interest for now, your payments will be $97.22 a month.
[$10,000 - $6,000 = $4,000]
But if you are able to negotiate a better price, say $9,000, then you get a better deal because the difference between residual (which does not change) and your negotiated price (which can always change) are now smaller. Your new payment would be $69.44 a month.
[$9,000 - $6,000 = $3,000]
Another point to remember is the money factor. This is the interest rate charged. Find out what is the rate and negotiate a lower one when possible.
|
This.... guys stop focusing on monthly payments when leasing.
Also on the money factor subject.. I thought it was not negotiable when financing with BMW NA.