How to Negotiate an Interest Rate on a Lease Buy-Out Car Loan

The key to negotiating an interest rate on anything is to be prepared. Negotiating an interest rate on a lease buy out car loan is no exception. You'll find that a few tips can help you become a good negotiator--and maybe save you big bucks.

Instructions

1. Pull your credit score. Do not enter into negotiations regarding your finances without knowing your credit score. You have a lot riding on whether or not the score is acceptable. Don't wait until you get to the negotiation table to find out what it is. The element of surprise is not a good negotiating tactic when you're the one who is surprised.

2. Shop around. Before you negotiate the lease buy out on your car loan, shop around to see what interest rates are available. If you have good credit, a credit union is usually a good option for the lowest available rate. If you don't qualify at a credit union, contact the bank where you do your banking. An established relationship with a banking institution will work in your favor.

3. Talk to the leasing company about financing. After you've shopped around, talk to the leasing company to see what they have to offer. Since you're already armed with alternative interest rates, negotiating with them should be easy.

4. Speak to the right person. Not everyone at the leasing company has the authority to negotiate the lease buyout price and interest rate. Make sure you get to someone who has the proper authority. It will save you time and frustration.

Tips & Warnings

• Begin the shopping process prior to the end of the lease. Sometimes it takes a while before you can solidify a good interest rate. Don't put yourself in a position where you have to take the first interest rate offer. Give yourself ample time.