Learn the lingo. You can't successfully negotiate a lease without becoming fluent in the industry's jargon and terms. Here's what you need to know before you start to dicker. The capitalized cost is the equivalent of the selling price, which is what you want to get down as low as possible. The residual value is the estimated worth of the car at the end of your lease.
Luxury cars are good lease candidates because they hold their value better than lower-end cars.
This is important since your monthly payments are determined by the difference between these two figures, plus an interest charge known as the money factor. Thus, raising the residual value or lowering either the capitalized cost or the money factor will lower your payments. Set a capitalized-cost target. Negotiate the capitalized cost with the dealer. Don't let the salesman switch your focus from the capitalized cost to the monthly payments, or you may wind up paying more overall.