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BW Advice: negotiating car lease terms

NickleDimer

Post 'Til Your Fingers Bleed
Feb 7, 2002
38,067
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Brightsidersville, USA
www.philly.com
Looking to lease a car soon as the dimer-mobile is struggling. Have never gone the lease route and might give it a try this time. I drive low mileage(~8k a year) so it might be good option for me. What should I look out for, what are the important points to negotiate? What things will they try to throw at me that I should get pissed about?
 
So many factors and one big one is the manufacturer and the car. Some companies subsidize their leases on certain models for many different reasons. I have a lot of experience in this area and happy to help. I'm a guy who leases all cars but my last one I bought because the lease on this model just didn't make sense. The make and model really matter on what incentives the dealer will provide.

As for the broader question: when I leased I always had them throw in all service, 15K miles and able to flip out of them relatively easy. Again, this will depend on the make and model and what your goal is in terms of the purchase. For me, I didn't like driving cars longer than 30 months-3 years because that's when you have to start replacing tires and brakes etc...My goal was to have a car payment like a utility bill. It came out of my direct deposit each month and I would never own any additional money for service or tires/brakes etc....

My recommendation: find a 36 month lease, get your service covered and given how much you drive 12K per year will be more than fine. It would be helpful to give an idea of what kind of car. Your value on the lease will depend on how the car depreciates and what incentives the company offers.

Here is an example: Mercedes gives crazy incentives on their C and E class models to lease. They subsidize their C 300 and 350. You can get these shocking cheap because they know once you lease one they have you for a long time. They'll be selling you a new car every 3 years. They have a new 450, you can't lease it because they offer no incentives because it's new and hot. Same thing on an E class. It's one example but the type of car and model greatly determines whether leasing makes any sense.
 
Negotiate the sales price of the vehicle, not the monthly lease payment. Too many ways to game that number without you being the wiser. Negotiate the sales price like you're going to buy it for cash, and then ask for lease pricing based off that number. Ask what money factor they are using, so that you can cross-shop with other dealers.

adp is definitely correct that these numbers can vary widely between manufacturers and for seemingly no reason at all. Factory incentives change monthly, as well.
 
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Looking to lease a car soon as the dimer-mobile is struggling. Have never gone the lease route and might give it a try this time. I drive low mileage(~8k a year) so it might be good option for me. What should I look out for, what are the important points to negotiate? What things will they try to throw at me that I should get pissed about?

ND, do you know the dealer/dealership you will be going thru? Is there a relationship in place? Doesn't really matter, but if they know you then it might be easier to wheel and deal. But if not, you can still control the negotiation. They want your business.

The low milage is key. 8K is a great number coming back to them at the end of the lease. They'll turn around and sell that baby before you get down the block on your next purchase.

My wife doesn't drive all that much and she gets very good deals in my opinion. They know they can turn around and make more money off that car because of the milage situation and more than likely it still being in great condition because of low driving.

Also, don't waste a day at a dealership. touch base thru e-mails. Tell them specifically what you're looking for, what you're trading in, what you want to spend. Let them do the work before you even get to the dealership. My last two leases have lasted about 30-45 minutes at dealership. I show up, sign some papers, and I'm gone. Didn't even test drive the damn thing. I knew what I wanted and what I was getting.

Play the cat/mouse game and let them think you're working with a couple of other dealerships. These cats prey on people who go into their place without a clue. Show them who is control from the outset and I think you'll walk away happy.
 
These cats prey on people who go into their place without a clue

But you know, that TruCoat.....

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How do you drive that little? That's insane. If that's the case you'd be dumb NOT to lease.
 
My best friend growing up had one of those with the front plate that read, "don't come a knockin if this van's a rockin". West Virginia, heck yea!
 
Just eliminate the information disadvantage by paying a few hundred bucks to Auto Authority and have them take care of it for you. You'll likely come out ahead and you get to avoid spending hours figuring out whether you are getting a good deal. The unknown unknowns are a problem with car buying.
 
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Try to put as little money down as possible. You don't get that back if you wreck the car or it's stolen or whatever. You're going to be out the same amount of money over the course of the lease, so might as well keep your up front costs to a minimum.

Those above are correct that lease deals are weird because car companies try to subsidize the leases on certain models. You can take 2 cars that have basically the same sticker price and get lease numbers that are different by $200/month or more. There is a website called takeovermylease or something like that where you can see what the monthly payments are for various cars people are trying to unload.

I have leased one car, then went back to buying. My wife's current car is also a lease and we'll probably buy one after the lease is up. Not really my thang.
 
Thanks for the tips, fellas. Some follow-ups:
ADP: what is included when you say "get your service covered"? All service costs over the lease term including regular maintenance? Or just service beyond oil/brakes/tires?

Burrs: what dealerships have treated you well?

Dirk: exactly!!! Are there any stains in the back?
 
Nothing's more 'Merican than spending 2 hours a day in your car commuting so that you can afford a mcmansion in the outer exburbs with other middle class white protestants.

What's a fair margin to offer them over dealer cost? 3%?
 
Just eliminate the information disadvantage by paying a few hundred bucks to Auto Authority and have them take care of it for you. You'll likely come out ahead and you get to avoid spending hours figuring out whether you are getting a good deal. The unknown unknowns are a problem with car buying.
Then hire a man to **** your wife for you too.
 
What's the fee?
It varies depending on the price of the vehicle you're buying. I think the range is around $400-1,000. Hopefully you'll keep your manhood intact and not call them, as apparently macho men like HCTC base their virility on their ability to outmaneuver a car salesman.
 
ND,

Nissan in Swarthmore and Granite Run Buick, GMC.

Yea, don't put anything down. Reach out ahead of time that way you can get in on some rebates or other promotions. Once they see that you are firm on your price then suddenly these rebates/promotions will be popping up.

I like leasing because I want a new car every three years, if not sooner. They'll be calling you ahead a time to try and put you in something else. On top of that, never any issues with car. Ever. Getting an oil change is the extent of it.
 
ND I misread your initial post. You said 8K a year. Not saying that's a lot. Probably less than average. My wife puts 8k on cars in 3 years. The train station is just a mike from house, and I do all of the driving.
 
Nd, they won't cover tires or brakes but everything. Thats why I usually flip out of my leases around 29k miles, you can avoid those costs. You might need tires but probably not brakes. Some companies will have pull through programs where they will eat up to 6 months to get you in a new car. Many times with nothing down.
 
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