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Jayhawker · 12-13-07, 11:49

They both have pros and cons. Leasing is a great way of having a car if you budget a car payment monthly, and like to get a new car every few years. The miles you put on a lease only hurt you if you turn the car in and walk away. Most manufactures will eat the last 6-8 payments of a lease if you trade in for another vehicle that they make. VW was very good at doing that.

Leasing "generates" more profit for the dealership and the mfg. What 99% of the population doesn't realize is that lease payments are based off the selling price of the car. If you remember that last car you got, if the salesperson had any brains they pitched this..."mr. jones, you payment is 400 a month for 60 months with 3500 down ...(blah blah blah) OR i can get you into that same car with 2k down for 319.67 + tax"...Most Americans are payment buyers and if the payment fits in the budget, they usually take it.

If you lease, negotiate the selling price of the car, not the payments. The lower you get the selling the price, the lower your payment is. You should know what you can afford and the #'s will fall into place.

Want more tips????? Read ON.....

Leg- term for over inflated payments that are quoted to the customer for the finance dept.
example; 25k car, 5.9% for 60 mos= 482.16. the manager will pencil 497.93 for 60 mos at 5.9%, thats a difference of 946.20 of profit for the f&i guy. "mr jones, for another 22 a month, i can throw in an extended warranty and credit life/disability......well, what if i can do for 13 more a month".....you already paid for it and are now giving more profit.

buy rate- the bank is offering the dealer 6.5 for "a paper", and they are contracting you at 7.5-8%. 13.5 for bad credit and the dealers are getting 17%. make sure you know if the mfg is offering any incentives before you go shopping.

in most cases, if you have good credit, take the rebate over 0% if it's 2500 or more. You won't make up the difference in rate compared with the rebate, assuming a 25k car.

know what your trades worth and don't get insulted when a dealer offers you 1k or more back of book of trade in value. i was very good at hitting trades and making the owners feel like getting rid of the car was the best thing for them. go on kbb.com and get an idea of what it's worth so the dealer doesn't "scoop" your trade.

last day of the month is the best day to buy. dealers are very aggressive to meet goals. i had to put $3500 over book to make a deal, but it brought the dealership a 60k credit in allocations for hitting 200 cars "rdr'd". for those of you fortunate enough to be in a climate like Phoenix, another great day to buy is when it's raining. not many folks go buy a car in the rain. they know it will be sunny tomorrow and dealerships hate to blank on any day.

never buy at the first lot. ex---here in Phoenix, we have 8 Honda dealerships. when i bought my Civic, I went to 3 dealerships before i was happy with my #'s, also having 5 years experience was a huge plus. it's amazing that people will go to best buy, circuit city and few other electronic retailers to save a 50-100 bucks, but won't shop for a car to save possibly a grand.

12-13-07, 11:49	#31 (permalink)
Jayhawker Registered User Jayhawker is offline Join Date: Aug 2007 Posts: 35	Re: Leasing vs. Owning They both have pros and cons. Leasing is a great way of having a car if you budget a car payment monthly, and like to get a new car every few years. The miles you put on a lease only hurt you if you turn the car in and walk away. Most manufactures will eat the last 6-8 payments of a lease if you trade in for another vehicle that they make. VW was very good at doing that. Leasing "generates" more profit for the dealership and the mfg. What 99% of the population doesn't realize is that lease payments are based off the selling price of the car. If you remember that last car you got, if the salesperson had any brains they pitched this..."mr. jones, you payment is 400 a month for 60 months with 3500 down ...(blah blah blah) OR i can get you into that same car with 2k down for 319.67 + tax"...Most Americans are payment buyers and if the payment fits in the budget, they usually take it. If you lease, negotiate the selling price of the car, not the payments. The lower you get the selling the price, the lower your payment is. You should know what you can afford and the #'s will fall into place. Want more tips????? Read ON..... Leg- term for over inflated payments that are quoted to the customer for the finance dept. example; 25k car, 5.9% for 60 mos= 482.16. the manager will pencil 497.93 for 60 mos at 5.9%, thats a difference of 946.20 of profit for the f&i guy. "mr jones, for another 22 a month, i can throw in an extended warranty and credit life/disability......well, what if i can do for 13 more a month".....you already paid for it and are now giving more profit. buy rate- the bank is offering the dealer 6.5 for "a paper", and they are contracting you at 7.5-8%. 13.5 for bad credit and the dealers are getting 17%. make sure you know if the mfg is offering any incentives before you go shopping. in most cases, if you have good credit, take the rebate over 0% if it's 2500 or more. You won't make up the difference in rate compared with the rebate, assuming a 25k car. know what your trades worth and don't get insulted when a dealer offers you 1k or more back of book of trade in value. i was very good at hitting trades and making the owners feel like getting rid of the car was the best thing for them. go on kbb.com and get an idea of what it's worth so the dealer doesn't "scoop" your trade. last day of the month is the best day to buy. dealers are very aggressive to meet goals. i had to put $3500 over book to make a deal, but it brought the dealership a 60k credit in allocations for hitting 200 cars "rdr'd". for those of you fortunate enough to be in a climate like Phoenix, another great day to buy is when it's raining. not many folks go buy a car in the rain. they know it will be sunny tomorrow and dealerships hate to blank on any day. never buy at the first lot. ex---here in Phoenix, we have 8 Honda dealerships. when i bought my Civic, I went to 3 dealerships before i was happy with my #'s, also having 5 years experience was a huge plus. it's amazing that people will go to best buy, circuit city and few other electronic retailers to save a 50-100 bucks, but won't shop for a car to save possibly a grand.