How to negotiate a car lease

The cost of buying a new car can be steep. More drivers prefer to lease lately because monthly payments are lower and you're not stuck with one car for more than a few years.  But before you hop in your new ride, Derica Williams has tips to help you negotiate the best deal.

Money experts said now is the time to lease, interest rates are near record lows, and prices for used cars on the rise.  According to Edmunds.com the smart thing to do is not even mention you're planning to lease when you visit a dealership.   Instead, negotiate a purchase price, and then ask your salesman to draw up a lease contract at that rate.   The bank offering you the lease will actually be buying the car, so if you can negotiate a good price for what's called the "capitalized cost," your lease payments will be lower.  

Keep an eye out for the "drive off cost" --that's the amount you need to pay upfront.  If you want to make a smaller down payment, your monthly charges will be higher.

Lastly, don't get too attached to the car. If you decide to buy it once the lease is up, you could end up paying more than the vehicle is actually worth and it defeats the whole purpose. If you like to switch things up and have a new car every few years, and drive less than about 12-thousand miles a year leasing is the best option for you.