sonnylax said:
The purchase price is meaningless when you lease a vehicle. I'm not sure why so many people obsess over that figure. It's much more productive to focus on the total cost of (Lease) "ownership" when evaluation potential leases. You are renting the car and paying for the depreciation (& some taxes) for a set amount of time & miles.
You will face two scenarios at the end of the Lease Period:
1. The vehicle purchase price is LOWER then the market value of the vehicle - You can purchase the vehicle and sell it on the open market, to make some money. Alternately, you can purchase it and drive it yourself as you would be buying this vehicle cheaper then you would elsewhere.
2. The vehicle purchase price is HIGHER then the market value of the vehicle - Throw the keys back to Dealer/Financing Group.
In either scenario (# 1 or # 2), you maintain control on whether to purchase or not. I definitely agree with the advice to negotiate via email only.
Once you have agreed upon a deal, you then visit the dealership. If the deal deviates (one penny) from the previously negotiated deal, then you get up and walk out. That is the only way to maintain control with the dealerships.
I think we have purchase price confused with residual value of the car. As far as I know, residual value of the car is NOT negotiable. You won't know the price of residual until you are ready to sign the paperwork. Once you reach that stage in the leasing process, you don't have a lot of leverage in negotiation.
I do agree that at the end of lease if market price is LOWER than residual value listed on lease, then you should turn your keys in.
Email and/or text negotiation allows you to have the dealer list the price IN WRITING.
For example, I send out emails to few dealerships in my area on a Saturday morning requesting the best price for 2015 S model with QC. I make sure they have the car in inventory by confirming on Nissan website as well as dealership website.
I specifically asked what is the best price they can offer for me to drive it away today.
The one replied just asking me to come down I just replied "No, thanks".
One dealer price came in essentially at inventory price and that's the one I accepted. The dealership was already preparing the car and being charged when I arrived.
At the end of day, negotiated price was at $29,652 with fees with residual value (purchasing option) at $12,247.
$2499 down (which will be $0 after California $2500 rebate) and 35 monthly payment of $228 with taxes which equates to less than
$8000 total payments for 3 years.
I think TRW got a good and fair deal.