Sajeev, I enjoy your posts on TTAC and I wanted to ask a quick lease negotiation question. Currently BMW has very good lease rates on their 5 series models. Is there a smart way to renegotiate the 10k mile/year limit? That just seems like a lot of money for 10k miles per year.
Unless you are a very profitable business, enjoy tax loopholes for gigantic SUVs and just gotta have a new ride every 2-3 years, leasing isn’t great for anyone. But conservative fiscal policy aside, I’ve yet to see a negotiable mileage rates in a lease. That’s not to say you shouldn’t ask, but the (corporate level) finance guys usually lock that in.
I’d attack from a different angle: complain about the mileage limit and insist on leasing for Invoice price minus ALL factory incentives, including the ones given to dealers in their holdback. Don’t worry about being a tightwad, dealerships make good money on leasing. Not to mention they probably won’t give you all of that holdback anyway, but you still gotta play hardball.
Not only do the words “invoice” and “holdback” get a salesperson to take notice, they’ll take action if lowering the car’s transaction price sells the lease. Because lowering that price is far, far easier to finagle on the dealership’s part.
Hopefully you can make the numbers work from a different angle.
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