How to Negotiate Lease Terms

Look for ways to reduce the cost of a lease.

A lease is an agreement to use or occupy a piece of property. This can mean an apartment or home, or a car, motorcycle or other vehicle. The terms of a lease are often negotiable, especially the length of the lease and its cost. You can use a variety of tactics to negotiate these terms to your advantage.

Things You'll Need

• Calculator

Instructions

1. Determine the overall cost of the lease over its entire term. For instance, a car leased for 36 months at $300 a month will cost $10,800. Weighing this cost versus the cost of purchasing the vehicle will help determine which option is most cost-effective.

2. Determine a budget for the lease. Alert the salesperson that you need to stay within this budget to make the deal work. For instance, if your budget is $1,500 a month for an apartment and the lessor is asking $1,700, try asking him to come down in price to meet your target.

3. Make concessions. For instance, when leasing a car you can give up luxury items such as heated seats or an entertainment center. If leasing a home or apartment, you can also extend the terms of the lease. If the lessor is asking for a one-year lease, offer to extend it to 18 months.

4. Check for incentives and deals. Many car dealerships offer incentives or price breaks on leases at certain times, such as the end of the model year. In addition, many apartment complexes offer incentives when the complex first opens or if they are trying to fill the complex to capacity. Check the newspaper and the company's website for deals.

   Also, cite incentives and deals that other companies are offering. For example, Ford may be offering deals, but not Chrysler. When negotiating with a Chrysler dealer on a vehicle lease, use the Ford deals as leverage--if you don't get the right agreement, you might switch to a Ford.

References

• Edmunds