re: Own vs Lease

quote:

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. Also, understand leasing is just a method of financing. You must still negotiate and haggle the price all the same.

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Most people don't know how to successfully negotiate a lease.

The less the average customer understands about the following terminology, the more susceptible they are to accepting a bad deal:

Capitalized Cost
Capitalized Cost Reduction
Acquisition Fee
Disposition Fee
Money Factor
Residual Factor

Most people are quick to answer a sales person when he/she asks if they’re planning to buy or lease a vehicle. As soon as you give away that you’re planning to lease, the price of the vehicle (capitalized cost) will freeze up. You’ve essentially lost any leverage you had at this dealership. You should negotiate the price of the new vehicle as if you’re going to pay for it with cash out of your own pocket and then bring that over to the lease.