What is a Lease & How Does it Work?
Technically, a lease is a legal
agreement between two parties that specifies the terms and
conditions for the rental of property, which, in this case is a
car. In general, the agreement is not between you and the car
dealer, rather it is between you and a leasing company chosen by
the dealer. In other words, the car is actually sold to the
leasing company who, in turn, rents the car to you (see figure).
The dealer simply acts as an agent for the leasing company and
negotiates the terms under which you will rent the car from the
leasing company.
You've read the web
site, studied the scams, bought the software, and are now ready
to do battle. So how then does one motivate the salesman
to sharpen his pencil and agree to lease or sell you the car you
want at a razor-thin margin? The answer, my friend can be
summarized in one word: competition. Nothing can
precipitate a drop in price like a better deal from someone
else. Yes, this does require a little additional time and effort
on your part. But thanks to this wonderful thing called the
Internet, you can get two or three competing quotes without
leaving your chair. Here's how:
Simply visit each of the sites
listed below (Edmunds.com,
Cars.com,
CarsDirect, Autos.com,
and FordDirect) and complete the request for quote form. Your request will be routed to a
dealership in your area who will then provide you with a competitive quote on
the vehicle or vehicle's of your choice, usually within 24 hours time (CarsDirect.com
is the exception - they quote you a price on-line immediately after selecting
the vehicle).
If you live in an
area without a lot of dealerships, you may get a quote from
dealers in nearby towns. Even if you are not willing to make the
drive, do not throw out this quote. Quotes from out of
town are often the most competitive since the salesman knows it
will take a great price to motivate you to drive 40 or 50 miles
to do business.
Print out each quote
and bring them with you when you shop your local dealer. When
the salesman tries to convince you that "this model is
hot" and $500 off sticker is a "great deal", you
can say, "Gee wiz, that's funny. I got three other offers
right here that are at least $1000 less than your price."
Then watch his price drop to 100 bucks over invoice.
