How does one go about negotiating a lease?

[x-ALI-x]

Thanks to you guys I'm not an expert at negotiating car prices.
But I'm exploring leasing instead of a cash or financing buy, any advise on how to negotiate a lease? What is a good lease deal? And why or why not a lease is favorable?

[sosh]

What I do is to negotiate a purchase price, then using that purchase figure get several quotes on a lease for the term you desire. Keep in mind that MBCC includes gap insurance and is fairly liberal with the condition of the car on return. From time to time there are "deals" on the lease but none on the W164 at this time. You can lower the monthly payment with MBCC by placing a deposit on the vehicle which will be returned at the end. Approxamatly $9000 will bring the pmt down about $100 per month. However, the only way a lease makes sense is if you are able to write it off as a business expense. Other than that, pay cash or get conventional financing.

[firstmb]

Lease is never beneficial, other then taking advantage of business tax write off as explained by Sosh.

If you calculate APR based on the Money Factor of the Lease , you will see those APR are too high. For e.g. 36mth lease with Money Factor (MF) of 0.00355 for Tier 1 customer is equivalent to 8.4+% APR. But, if you go with conventional financing for 36 mths you can get the car financed for around 5.5% easily.

Also check with your Dealer if there is any Trunk Money available on W164, I would highly doubt so, but there is no harm in checking.

[firstmb]

Just back from the Dealership and there is a special on ML and R Class Leases

ML-Class Lease Special MF: 0.00290 equivalent to 7.00%APR

R-Class Lease Special MF: 0.00230 equivalent to 5.7% APR

There is also additional special on R-Class of free 1st payment.

[miroj]

x-ALI-x - 11/12/2005 2:16 PM

Thanks to you guys I'm not an expert at negotiating car prices.
But I'm exploring leasing instead of a cash or financing buy, any advise on how to negotiate a lease? What is a good lease deal? And why or why not a lease is favorable?

Negotiating a lease is like negotiating the smallest most painless needle to draw your blood.

[x-ALI-x]

miroj - 11/11/2005 11:49 PM


Negotiating a lease is like negotiating the smallest most painless needle to draw your blood.

So you saying its seemless or hard, I don't get it?!?!
Drawing blood has never been an issue for me [:D]

[antonioucl]

Other comment not totally true.

Have to take into account resuidual values.

Cap Cost vs. MSRP

ETC

Leasing is the preferred mechanism for those who know they will always want a car under warranty.

As that by lease end you will be in the mood to purchase a new car. THis usually is before warranty ends.

Whereas buyers tend to pay more per month, and upon finance ending are left with a very low valued asset, that has no warranty on the power train.

I got my money facor at .0219 during the decmber sale and got a residual set above 55 Percent as an example stellar deal.
http://www.leaseguide.com