12 Car Leasing Mistakes That Cost You

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1) You Can Negotiate the Price

Many people think that a car lease is based on its MSRP, or sticker price. That's not usually the case unless you are taking advantage of a manufacturer-subsidized lease deal. You can, and definitely should, negotiate to get the best price on the vehicle you are leasing.

The purchase price of the car is called its capitalized cost, or cap cost, in leasing. Lowering the cap cost will reduce your monthly payments, your upfront payment, or both.

You can also take advantage of several cap cost reductions to lower the total cost of the lease, including the value of any trade-in (which should also be negotiated) and any incentives that are offered by the carmaker or dealer.

Several other factors can also be negotiated, including the interest rate (called the money factor), the end of lease purchase price, and the mileage cap that sets a limit on the number of miles you can drive before you are penalized.

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