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Step 1
Research the car and the manufacturer before going into a dealership. You can find all of the information you need online including the invoice cost, the money factor/interest rate, the residual value, additional fees from the manufacturer and special deals and promotions.
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Step 2
Compare the figures you uncover with your research with the ones offered by the dealer before you begin to negotiate. If the dealership isn't offering the money factor or residual value terms you've uncovered, require a good explanation or find another dealership. Ask the salesperson to write the money rate and the residual value on the back of a business card. This will make that salesperson accountable for the quote and help you avoid being misquoted the wrong factors.
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Step 3
Pay attention to the "net cap cost" when negotiating. The monthly payment is derived from the net cap cost. You may be quoted a selling price, but you have to remember that the capitalized fees and capitalized taxes factor into the net cap cost.
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Step 4
Find out where the cash due at signing is going. If this figure is not calculated on the lease contract, get the breakdown from the salesperson.
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Step 5
Make the calculations for the payment yourself. One of the most common scams in car leasing is "accidentally" miscalculating the monthly payment to be higher than it actually is. The only way to protect yourself from this is to know all of the factors that go into determining a monthly payment and actually doing the calculations yourself. You can use a hand calculator to determine what you should be paying for your monthly payment, or you can use an online calculator like the one offered by Bankrate.com to make it easier (see Resources below).
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Step 6
Avoid being rushed to sign a contract. Take all the time you need to look over the paperwork and check the numbers even if that means taking it home. The best way to avoid scams is to sign only when you are sure you have a fair deal.
