Leasing A Car: Any Tips?!?! - GoFuckYourself.com

96ukssob · 07-02-2013, 07:06 AM

I'm leasing a Mazda for my wife to drive, selling our large SUV. We've got a good deal on a 2014 CX-5 that we are picking up today... however, we haven't even seen the car yet because it is being delievered. For some reason, these cars are selling like hot cakes and the dealership we went to, didn't even have this trimline, only the one below it.

So... I ask because I've been bent over before at the dealership when it comes to buying/leasing cars. They wouldn't budget on the price, however I did get them to throw in $600 worth of accessories (which probably cost them $8).

Any tips from "expert" car buyers? I like to think of myself as experienced considering I've owned some 12 cars in my 33 years in life, but each one of those, with the exception of one or two, was a jail house raping.

We haven't signed anything yet until we see the car with the color (made this mistake getting a Honda before), but anything else besides test driving it? Not trying to get anymore $$ or things, just want to make sure we don't leave and say "oh, fuck! why didn't we think to say/do..."

2MuchMark · 07-02-2013, 07:30 AM

Hi Bossku69,

First congrats on your new car!

The thing to remember is that all prices are flexible. The cost of the car of course is flexible but so is the costs of the lease.

Leasing is great for certain situations - mostly it lets you afford a car that is normally beyond the budget, and it lets you get a new car every few years or so.

What you want to try to do is the following:

- Get the lowest financing rate. Loans are dirt cheap these days and you should be able to get a rate of 5% or less.

- Most of the time the dealer will want to lock you down to a milage limit per year of say 20k. Try to know ahead of time how much you think you will drive because if you exceed the rate they will charge you a per-mile (or per kilometre) penalty when you go to return the car. The limit is negotiable too.

- Put the lease under your company name instead of your personal name to enjoy some tax savings (ask your accountant how this would work).

Here's the best part. The dealer will say that all you have to do is return the car when your deal is up. "Nothing more to pay!" he will say. This is true if your millage is under the limit and the car is nice and clean without damage. But what he doesn't tell you is that when you bring the car back in good shape, it is actually worth alot more.

What you want to do instead is first call the dealer or financing company to learn how much is still owed on the car, then put the car up for sale for a few thousands MORE than what you owe on the car. Don't forget that the dealer will be trying to sell your car when you return it and the lease rates are calculated to make sure they make a profit not only on the initial sale but on the resale too. You can take advantage of this and sell your own car yourself and pocket the profit.

When you have a buyer, take him to the dealer and do the paperwork there. The dealer sells their car but YOU get the resale profit from it.

Grapesoda · 07-02-2013, 07:36 AM

Quote:

Originally Posted by bossku69

I'm leasing a Mazda for my wife to drive, selling our large SUV. We've got a good deal on a 2014 CX-5 that we are picking up today... however, we haven't even seen the car yet because it is being delievered. For some reason, these cars are selling like hot cakes and the dealership we went to, didn't even have this trimline, only the one below it.

So... I ask because I've been bent over before at the dealership when it comes to buying/leasing cars. They wouldn't budget on the price, however I did get them to throw in $600 worth of accessories (which probably cost them $8).

Any tips from "expert" car buyers? I like to think of myself as experienced considering I've owned some 12 cars in my 33 years in life, but each one of those, with the exception of one or two, was a jail house raping.

We haven't signed anything yet until we see the car with the color (made this mistake getting a Honda before), but anything else besides test driving it? Not trying to get anymore $$ or things, just want to make sure we don't leave and say "oh, fuck! why didn't we think to say/do..."

run the numbers on the lease... see how much it is costing you for the term of the lease... using the wholesale sale price of the used car... ask the guy, doubt he'll lie to you

the better the resale value the better deal you'll get.. also take damn good car of the car and make sure you get ALL the miles you need...15K? wouldn't go over 3 years.

had a 2011 caddy cts v, about 70K.. put 20K down and the lease was $347 per month with 15K miles over 2 years.. $1180 per month. with tax and miles total price per over 24 months ...

right now I have a gmc arcadia, around +/- 50K, 10K down, $288 for 39 months at 15K...

96ukssob · 07-02-2013, 07:38 AM

Quote:

Originally Posted by **********

Hi Bossku69,

First congrats on your new car!

The thing to remember is that all prices are flexible. The cost of the car of course is flexible but so is the costs of the lease.

Leasing is great for certain situations - mostly it lets you afford a car that is normally beyond the budget, and it lets you get a new car every few years or so.

What you want to try to do is the following:

- Get the lowest financing rate. Loans are dirt cheap these days and you should be able to get a rate of 5% or less.

- Most of the time the dealer will want to lock you down to a milage limit per year of say 20k. Try to know ahead of time how much you think you will drive because if you exceed the rate they will charge you a per-mile (or per kilometre) penalty when you go to return the car. The limit is negotiable too.

- Put the lease under your company name instead of your personal name to enjoy some tax savings (ask your accountant how this would work).

Here's the best part. The dealer will say that all you have to do is return the car when your deal is up. "Nothing more to pay!" he will say. This is true if your millage is under the limit and the car is nice and clean without damage. But what he doesn't tell you is that when you bring the car back in good shape, it is actually worth alot more.

What you want to do instead is first call the dealer or financing company to learn how much is still owed on the car, then put the car up for sale for a few thousands MORE than what you owe on the car. Don't forget that the dealer will be trying to sell your car when you return it and the lease rates are calculated to make sure they make a profit not only on the initial sale but on the resale too. You can take advantage of this and sell your own car yourself and pocket the profit.

When you have a buyer, take him to the dealer and do the paperwork there. The dealer sells their car but YOU get the resale profit from it.

Thanks

Tax purposes is exactly why we are doing this. The rate is good for the lease, actually factoring in residual, its almost like borrowing for less than 1% for 3 years.

When I last leased my Audi, I was able to sell it for WAY more than what was owed, but I didn't know about having to pay tax on the balance, so that really sucked, so at least with this, I'll know.

However, when I went to pick up that car, I got hit with a $795 bill right there to take the car. The sales rep never told me it was due on top of whatever $$ down. So I asked in this case and the sales rep at Mazda said "oh, I'll just divide that into your payments for you."

The lease deal is nice, $0 down and $0 due first month. They wouldn't budget on the price and called my bluff that I was going somewhere else, so I said I would pick it up from them if they tossed in a the retractable cargo net and floor mats and 2 coffee mugs

jigga · 07-02-2013, 07:43 AM

When it comes to new cars you gotta know what the invoice price is and what rebates are offered (some rebates are advertised, others are not). There are online services that give you that info. Rebates are paid to the dealer by the factory so don't let them BS you around with crap like "we're already lowering it this much."

Once you have all that info, leave the dealer some profit ($500-$1000 depending on the car) but stay firm on your price. Walk out if you have to (if you left your number, they'll call you within 24 hours). If you're with your wife, have her play the part of the good guy who wants the car and you play the hardass cheapskate. You walkout, she tells the salesman who stubborn you are and how you've done this before. It's all a game really, heh.

There are quite big sales on certain cars once or twice a year. I've seen $28k cars get slashed to $20k just with the rebates so it's stupid to buy a new car without waiting for these sales.

slapass · 07-02-2013, 07:46 AM

Quote:

Originally Posted by bossku69

but I didn't know about having to pay tax on the balance, so that really sucked, so at least with this, I'll know.

Sales tax on the balance of the lease? I did not know this either.

Edit: why pay full price can you not find one of those 50-100 over dealer invoice deals somewhere?

2MuchMark · 07-08-2013, 06:13 AM

Quote:

Originally Posted by bossku69

Thanks

Tax purposes is exactly why we are doing this. The rate is good for the lease, actually factoring in residual, its almost like borrowing for less than 1% for 3 years.

When I last leased my Audi, I was able to sell it for WAY more than what was owed, but I didn't know about having to pay tax on the balance, so that really sucked, so at least with this, I'll know.

However, when I went to pick up that car, I got hit with a $795 bill right there to take the car. The sales rep never told me it was due on top of whatever $$ down. So I asked in this case and the sales rep at Mazda said "oh, I'll just divide that into your payments for you."

The lease deal is nice, $0 down and $0 due first month. They wouldn't budget on the price and called my bluff that I was going somewhere else, so I said I would pick it up from them if they tossed in a the retractable cargo net and floor mats and 2 coffee mugs

Ouch..!

That might not be legal. I would have threatened to walk away from the deal if they didn't absorb that cost especially since they put it on your bill at the last minute.

On my last purchase, I was able to successfully negotiate the following:

- Almost $3000 below the best online price I could find (which was almost $4000 from their sticker price). (Hard!)

- Got their advertised 5.9% financing fee down to 2.9% and then eventually to 0%. (Hard!)

- Upgrade of the car to the RS package (Better lights, nicer interior, etc) (Easy!)

- 1 Year free oil change (super easy!)

- Extended Warranty (easy! They tried to sell it to me for an extra fee at first. lol!)

Remember that the dealer and the sales person are very eager to get the car off the lot. They bet that you are even more eager to drive it away so they try to pile on extras. Just be tough and you'll save thousands.

bronco67 · 07-08-2013, 06:48 AM

Quote:

Originally Posted by bossku69

I'm leasing a Mazda for my wife to drive, selling our large SUV. We've got a good deal on a 2014 CX-5 that we are picking up today... however, we haven't even seen the car yet because it is being delievered. For some reason, these cars are selling like hot cakes and the dealership we went to, didn't even have this trimline, only the one below it.

So... I ask because I've been bent over before at the dealership when it comes to buying/leasing cars. They wouldn't budget on the price, however I did get them to throw in $600 worth of accessories (which probably cost them $8).

Any tips from "expert" car buyers? I like to think of myself as experienced considering I've owned some 12 cars in my 33 years in life, but each one of those, with the exception of one or two, was a jail house raping.

We haven't signed anything yet until we see the car with the color (made this mistake getting a Honda before), but anything else besides test driving it? Not trying to get anymore $$ or things, just want to make sure we don't leave and say "oh, fuck! why didn't we think to say/do..."

I can chime in an say I'm very happy with my CX5 lease. I've never had a car get better gas mileage.

videobunch · 07-08-2013, 09:22 AM

My wife and I lease all our calls because we get sick on them after 2 yrs. We never put anything down and always pay dealer invoice or below. The price of the lease will be based on paying price and what is called the lease factor(Money factor) it is basically the interest rate. The more manufacture support you have the better this rate is. Then also make sure you are getting all the manu to cust and I sometimes ask for the manu to dealer rebates

I use like edmunds.com to get price and to check on rebated. Sometimes they are not 100% correct but most times they are.

Also if you can take a car off the lot is better as the deal has to pay a floor plan each mth normally at the end of the mth so better to wait to the 25th to buy.

That is my suggestion and have leased about 20 cars.

07-02-2013, 07:06 AM	#1
96ukssob So Fucking Banananananas Industry Role: Join Date: Mar 2003 Location: If I was in your ass you'd know it Posts: 12,991	Leasing A Car: Any Tips?!?! I'm leasing a Mazda for my wife to drive, selling our large SUV. We've got a good deal on a 2014 CX-5 that we are picking up today... however, we haven't even seen the car yet because it is being delievered. For some reason, these cars are selling like hot cakes and the dealership we went to, didn't even have this trimline, only the one below it. So... I ask because I've been bent over before at the dealership when it comes to buying/leasing cars. They wouldn't budget on the price, however I did get them to throw in $600 worth of accessories (which probably cost them $8). Any tips from "expert" car buyers? I like to think of myself as experienced considering I've owned some 12 cars in my 33 years in life, but each one of those, with the exception of one or two, was a jail house raping. We haven't signed anything yet until we see the car with the color (made this mistake getting a Honda before), but anything else besides test driving it? Not trying to get anymore $$ or things, just want to make sure we don't leave and say "oh, fuck! why didn't we think to say/do..." __________________ Email: Clicky on Me

07-02-2013, 07:30 AM	#2
2MuchMark Videochat Solutions Industry Role: Join Date: Aug 2004 Location: Canada Posts: 49,044	Hi Bossku69, First congrats on your new car! The thing to remember is that all prices are flexible. The cost of the car of course is flexible but so is the costs of the lease. Leasing is great for certain situations - mostly it lets you afford a car that is normally beyond the budget, and it lets you get a new car every few years or so. What you want to try to do is the following: - Get the lowest financing rate. Loans are dirt cheap these days and you should be able to get a rate of 5% or less. - Most of the time the dealer will want to lock you down to a milage limit per year of say 20k. Try to know ahead of time how much you think you will drive because if you exceed the rate they will charge you a per-mile (or per kilometre) penalty when you go to return the car. The limit is negotiable too. - Put the lease under your company name instead of your personal name to enjoy some tax savings (ask your accountant how this would work). Here's the best part. The dealer will say that all you have to do is return the car when your deal is up. "Nothing more to pay!" he will say. This is true if your millage is under the limit and the car is nice and clean without damage. But what he doesn't tell you is that when you bring the car back in good shape, it is actually worth alot more. What you want to do instead is first call the dealer or financing company to learn how much is still owed on the car, then put the car up for sale for a few thousands MORE than what you owe on the car. Don't forget that the dealer will be trying to sell your car when you return it and the lease rates are calculated to make sure they make a profit not only on the initial sale but on the resale too. You can take advantage of this and sell your own car yourself and pocket the profit. When you have a buyer, take him to the dealer and do the paperwork there. The dealer sells their car but YOU get the resale profit from it. __________________ Custom Coding \| Videochat Solutions \| Age Verification \| IT Help & Support www.2Much.net

07-08-2013, 09:22 AM	#9
videobunch Largest Content Provider Industry Role: Join Date: Apr 2008 Location: www.VideoBunch.com Posts: 778	My wife and I lease all our calls because we get sick on them after 2 yrs. We never put anything down and always pay dealer invoice or below. The price of the lease will be based on paying price and what is called the lease factor(Money factor) it is basically the interest rate. The more manufacture support you have the better this rate is. Then also make sure you are getting all the manu to cust and I sometimes ask for the manu to dealer rebates I use like edmunds.com to get price and to check on rebated. Sometimes they are not 100% correct but most times they are. Also if you can take a car off the lot is better as the deal has to pay a floor plan each mth normally at the end of the mth so better to wait to the 25th to buy. That is my suggestion and have leased about 20 cars. __________________ Kevin www.VideoBunch.com Email - Kevin @@ Aned .com or Team - videobunch

07-02-2013, 07:43 AM	#5
jigga Confirmed User Join Date: May 2001 Location: Canada Posts: 302	When it comes to new cars you gotta know what the invoice price is and what rebates are offered (some rebates are advertised, others are not). There are online services that give you that info. Rebates are paid to the dealer by the factory so don't let them BS you around with crap like "we're already lowering it this much." Once you have all that info, leave the dealer some profit ($500-$1000 depending on the car) but stay firm on your price. Walk out if you have to (if you left your number, they'll call you within 24 hours). If you're with your wife, have her play the part of the good guy who wants the car and you play the hardass cheapskate. You walkout, she tells the salesman who stubborn you are and how you've done this before. It's all a game really, heh. There are quite big sales on certain cars once or twice a year. I've seen $28k cars get slashed to $20k just with the rebates so it's stupid to buy a new car without waiting for these sales.