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What is subsidized lease?
How Does a Subsidized Lease Help? By lowering the car's sale price to the leasing company, the automaker is lowering your monthly payments. Since drivers who lease a car essentially pay the depreciation, a lower starting price means less depreciation to pay, and that means lower monthly lease payments.
What is a dealer subsidized lease?
What Is a Subsidized Lease? Although leasing may seem like borrowing a vehicle for a monthly fee, it actually involves a sale -- from the dealership to the leasing company. When automakers refer to a subsidized lease, they're often talking about subsidizing, or lowering, the sale price to the leasing company.
Can you negotiate the money factor in a lease?
Negotiate the interest rate (money factor) on the lease to a level appropriate to current market interest rates. Also, when the lease ends you typically have the right to buy the car at the residual value.
What is a good money factor on a lease?
A lease deal with a money factor of less than. 0017 is a good deal. Anything higher, means less of a good deal. Of course, the best lease deals are made with a combination of low lease PRICE, high RESIDUAL value, and low MONEY FACTOR.
What month is the best to lease a car?
Timing your lease can be important if you want to maximize savings. Generally, the best time to lease a car is shortly after the model is introduced. That's when the residual value will be the highest — meaning you'll likely save money on the depreciation cost.
Do you get rebates when leasing?
One of the best things about cash-back incentives is that you automatically qualify. All you have to do is sign a lease before a date specified by the manufacturer, and you get a discount on the vehicle. It's that simple. Cash back incentives typically range between $500 and $5,000.
Do car rebates apply to leases?
Incentive No. First, the cash rebate that is offered when you buy a new car can sometimes be applied to a lease. This rebate is set by the manufacturer and is for a flat amount. Any restrictions on it are spelled out on the automaker's website, usually in the fine print under the offers section.
How do rebates work on a lease?
Also referred to as a “subsidized lease” or “subverted lease.” A form of “incentive and rebate” that consists of a vehicle lease offered by a vehicle manufacturer in which the amount of the monthly payment is reduced below that then offered by independent leasing companies (the cost of which is absorbed by the
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