Tips on Buying Cars: which price negotiate first?

Question
When leasing a car, is it better to first negotiate the price of the trade-in or first get a price on the new car? Or does it not really matter? I'm guessing if they give you a great price on the trade-in, they'll offset it by not giving as good of a price on the new car, and vice versa.  Thanks

Answer
Hi Lee
When negotiating a purchase or a lease it is ALWAYS BEST to not have a trade because you did the smart thing and sold it yourself on craigslist. If you are intent upon leaving 2-3k on the table then the real answer is that it doesn't matter because if you negotiate price first and then spring the trade on the dealer afterwards then it he is going to offer you less than you think the car is worth because you will have used up all of the 'feel good' money by grinding the price down. As long as you have a trade then the dealer has all he needs to protect his profitability on the deal ...with leases he will also have the money factor he can write up and most people don't know how to convert the money factor to an actual interest rate equivalent...the only break from this danger is to find a car with a subvented special money factor which usually can't be marked up at all.

Sell your trade yourself...trust me its the smart thing to do. Leasing can be confusing unless you are on the ball you can get your head handed to you very quickly and not even know it. Do the math yourself before going to the dealer and never negotiate the terms of the deal while you are sitting in the showroom ...that's why we have smart phones and the internet.

Ask as many follow ups as you want I am with you on this all the way