The third transaction is how much did the lessor/dealer pay for the vehicle you are about to lease. Keep in mind that the dealer will make a profit on the sale of the new car. It is in your best interest to accept this fact. Negotiate the selling price with the dealer just as if you were going to buy the vehicle. You must ask the dealer to see the invoice and you both agree on the profit margin. Make sure you get all rebates and discounts as well. Ask the dealer. If the dealer will not show you the invoice then leave.

Profit margins on leases may be higher than a traditional loan because the dealer has more exposure for losses if you return the car before lease end. But this is no reason for the dealer to drastically inflate selling price.

NOTE: The purchase price of your leased vehicle is critical because the more you pay the higher your monthly payments and the greater the dealer profits.