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re: About to lease a car...any tips before I pul the trigger?

Posted on 5/26/14 at 9:52 pm to
Posted by Will Cover
St. Louis, MO
Member since Mar 2007
38705 posts
Posted on 5/26/14 at 9:52 pm to
quote:

So if I were to negotiate the price to lower than what the deal is currently using then I can also lower the monthly payment? Am I understanding that correctly? Basically what you're saying is to go to the dealership and act as if I were buying the car and get the price as low as possible. Once that is done I tell them that I want that price but work it up as a lease?



Leasing provides a good deal for four parties - the sales person, the F & I guy, the dealership’s owner and the finance company (leasing company). It is a lousy deal for the customer. Leasing adds a layer of complexity to the deal that allows the salesman to hide or misrepresent the true purchase price.

You'll be asked early on in the process whether your plan to purchase or lease. Don't answer that question. Simply state that you are unsure at this time.

Work on the price of the vehicle first. And negotiate as if you don't need the vehicle.

What you have to be careful of is the F&I will catch on to this and try to make it up on the back end to get you back to the advertised special. Make sure you familiarize yourself with the following:

Residual?

Capitalized cost reduction?

Acquisition fee?

Disposition fee?

Money Factor?

or else you'll get lost in the whole back end of the deal process.
This post was edited on 5/26/14 at 9:54 pm
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