Car manufacturers will more often than not give car dealers incentives on certain cars to help them move their inventory much faster. These can help car lease deals quite a bit and the incentives serve to lower the cost of a car to the dealer. This gives the dealer an opportunity to make a lot of money through their own offers but it also allows them flexibility in negotiations with customers, like bigger discounts.

Generally, the idea is to allow the customer buy the car for a lesser price, if he or she is bullish about it. These factories to dealer incentives will show up as capital-cost reduction in lease agreements and the trick here is to know exactly how much financial support the manufacturers and dealer are putting into the cars up for lease. Some magazines will publish current dealer and customer incentives and it’s these that deserve close watch especially if you are in the market for a new car.