Business car lease tips: get the best business car leasing special offers
Leasing a car has its advantages over buying, and many businesses have found leasing as their go-to option. Car leasing dealerships have come up with special offers and deals that suit businesses the best.
A car lease deal depends on many factors, such as the car model, sale price, initial payment, the annual mileage, etc. and it is important to know what actually matters and what doesn’t, to negotiate a great car lease deal. There are many fees associated with car leasing that can be negotiated, and there are many that can’t be negotiated. This article will help you negotiate at the right points and close a great car lease deal.
Email multiple dealerships for the best deal
Most of the dealerships now have internet departments – salespeople devoted to pricing and negotiating via emails or messages. They know that a potential client will be contacting other dealerships also for the best deals, and so they will give you their best deal without much negotiation.
All that you have to do is find their contact information from the website, email about your needs and ask for the best deal they can get you.
Please note the following while sending the email:
- Mention that you are planning to lease a car by the end of next week. The dealership will have to give the best deal since you are in a hurry and they could miss a customer if they cannot keep you interested.
- Tell them which car you prefer – the model, colour, whether new or used, etc.
- The monthly payments greatly depend on the miles you plan to cover. So you should estimate your annual mileage and mention it in the email.
- Ask for the price with a breakdown of all the fees, there are some fees that you can negotiate. Also, ask if there are any incentives or discounts offered by the manufacturer.
Make sure you sound like you have taken a car lease before(even if you haven’t), by using leasing related jargon here and there.
2. Choose cars that do not depreciate the most
When leasing, you are paying only for the depreciation of the vehicle during the term and some fees. So if you choose a car that holds its value, your monthly payments will be lower.
When you get the deals from the online salesperson, check for vehicles with good residual value. Some cars have residual values as low as 46% and some have as high as 72.6%. Google the residual value of your preferred car models and pick the best one.
- The residual value is what your car will be worth at the end of the lease.
- Higher residual value means lower monthly payments.
Note that the difference between the sale price and the residual value is what you are paying when leasing a car.
3. Negotiate the sale price of the car
Even though you are not buying the car, your payment is based on the buy price of the vehicle at the time of signing the contract and hence you can negotiate its buy price.
Check if the manufacturer offers any incentives or discounts, the best price of the car, etc. and negotiate with your leasing agent.
- The sale price of the car affects your monthly payments and you can negotiate it.
- Any discounts or incentives offered by the manufacturer applies when leasing also.
Usually, at the end of the year, sale prices go down as new model year cars will be filling the market. You can steal a great deal if you lease at the end of the year.
4. Estimate your annual mileage
The depreciation of the car depends on the miles you cover, so the monthly payments depend on your mileage also.
When looking at leasing business cars, consider who will be using it, how many miles they are going to cover, etc. Estimating annual mileage is important as covering more miles will invite a penalty fee calculated per mile.
- Calculate the annual mileage correctly. Add 5-10% to it to be on the safer side.
- If the car will be used for private purposes also, consider regular work commutes and weekend commitments.
- Negotiate the penalty fee for extra miles covered.
Ask for help from the leasing agent when calculating the mileage. He will help you if you have missed anything.
5. Ask for a deal based on your financial status
Many dealerships consider the credit score when offering a lease deal. A good credit score means eligibility for a one-month initial rental deal, so don’t hesitate to ask if you prefer that. Usually, dealerships offer one-month, three-month, six, nine and twelve-month initial rental plans.
One thing that you must be aware of is that a higher initial rental comes with lower monthly payments. You should also take the financial preferences of your business into account.
- When leasing, don’t hesitate to ask for a deal based on your preferences.
- Higher initial rental means lower monthly payments.
Summary
Knowing when and where to negotiate and save is necessary to get a great car lease deal. There are certain things that one must know before negotiating a car lease deal, such as discounts and incentives offered by the manufacturer, current sale price of the car, the annual mileage, etc.
Choosing a car with low depreciation can reduce the leasing costs significantly. Businesses can take advantage of their credit score to get some special offers such as one-month initial rental car lease.