Cadillac Finance: Can You Negotiate a Lease?

If you’re wondering whether you can negotiate your lease with our Cadillac finance department, the answer is yes. However, negotiating a lease is different from a loan in many respects. Understanding those differences is crucial to getting the process right.

Important Terms to Know About Your Lease
Negotiating your lease starts with an understanding of some basic terminology.

· Capitalized Cost: Also known as cap cost, it is the selling price of the vehicle you are leasing. This cost includes the car’s negotiated price plus additional costs financed through the lease.
· Capitalized Cost Reduction: Similar to a down payment that reduces the vehicle sales price.
· Lease Term: The months you lease the vehicle and will pay an agreed-upon monthly fee.
· Residual Value: The amount you will pay if you buy the car at the end of the lease, also known as a lease buyout.
· Depreciation: The reduction of the car’s value during the lease.
· Money Factor: The rate at which you are borrowing money. The lease money factor is equivalent to the annual percentage rate of a loan.
· Disposition Fee: A fee to cover the expense of cleaning and selling the car after you return it at the end of the lease.
· Excess Mileage Fee: Lease agreements specify the miles you’re allowed to drive annually. If you exceed this number of miles, you will be charged a fee when you return the vehicle.

What You Can Negotiate on Your Lease
Similar to buying a car, you can negotiate a lease too. There are different factors to negotiate when you decide to lease a vehicle, including the price, lease term, mileage limits, lease-end buyout, and even some fees.

However, remember that, unlike a loan, a car lease cannot be renegotiated, so getting your ducks in a row from the start is vital. So if you’re ready to lease a luxury vehicle, visit our Cadillac dealership in Allentown, PA, today, and one of our dealers will help you explore your options.

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