Lease advice
08-14-2012, 12:32 PM
#1
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Lease advice
Looking at a 2013 sedan. Looking to lease, 79,385 sticker. Dealer said only discount was a 2000 conquest for my m3. So he quotes a 36 month lease w/ 4000 down at 1242/month w/ taxes. Plus a first month payment.Was looking for something closer to 1100 a month. Am I asking too much?
08-14-2012, 04:14 PM
#2
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c63
Leasing is very tough to negotiate. The rates are set in stone, and are non-negotiable. Merc would LOVE you to lease this car as they know they can resell in in 3 years time, no issue. After 3 years they mark the residual on these around $37k. We all know that this car in 3 years is worth $50+ if you sell private.
If leasing makes economical sense for you to do (i.e. you have a company and can write it off as an expense) DON'T put any money down. Doing this to reduce your monthly payment doesn't make sense. It's quite the same as you lighting that money on fire. You will never get it back. Not in the residual, not anywhere. Highly advise against it.
I'm also in negotiations to acquire a 2013 c63, and I was quoted (for lease) a little less than that with $0 down, but a trade in valued at $8k. Goes to show that these rates are non-negotiable.
My advice, finance @ 1.9% is better than lease at 3.6%....if of course, you're just a regular guy like me that cannot write a car off as a corporate expense.
If leasing makes economical sense for you to do (i.e. you have a company and can write it off as an expense) DON'T put any money down. Doing this to reduce your monthly payment doesn't make sense. It's quite the same as you lighting that money on fire. You will never get it back. Not in the residual, not anywhere. Highly advise against it.
I'm also in negotiations to acquire a 2013 c63, and I was quoted (for lease) a little less than that with $0 down, but a trade in valued at $8k. Goes to show that these rates are non-negotiable.
My advice, finance @ 1.9% is better than lease at 3.6%....if of course, you're just a regular guy like me that cannot write a car off as a corporate expense.
Last edited by CashCanuck; 08-14-2012 at 04:16 PM.
08-14-2012, 04:52 PM
#3
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2011 C63 P31
Leasing and buying are identical in one important way: The dealer still "sells" you a car for the negotiated amount. How you end up paying for the car is a totally different matter: Cash, loan or lease. They get some kickbacks for loans so may try to get to you sign up for a loan instead of paying cash, but other than that, it shouldn't matter to the dealer.
The only thing usually set in stone as far as leasing is concerned is the residual and money factor (interest).
So do not mention the form of payment to the dealer when you are looking at a car. Tell them you are open to all forms of payment (cash/loan/lease). The only thing you are negotiating is the sale price. You do this with the sales guy. Once you have reached an agreement on the sale price, you can discuss the form of payment with the finance manager. Ask in advance what the residual/money factor is on the particular model/year car you are looking at, so you can calculate the lease payments yourself on a smartphone.
Long story short: Negotiate the selling price with the sales guy, Do NOT negotiate the payment.
The only thing usually set in stone as far as leasing is concerned is the residual and money factor (interest).
So do not mention the form of payment to the dealer when you are looking at a car. Tell them you are open to all forms of payment (cash/loan/lease). The only thing you are negotiating is the sale price. You do this with the sales guy. Once you have reached an agreement on the sale price, you can discuss the form of payment with the finance manager. Ask in advance what the residual/money factor is on the particular model/year car you are looking at, so you can calculate the lease payments yourself on a smartphone.
Long story short: Negotiate the selling price with the sales guy, Do NOT negotiate the payment.
08-14-2012, 07:25 PM
#4
It would be on OK deal if it was $0 down. The problem is leasing you are paying the depreciation, the car is near the end of the cycle thus the residual value is lower than a year or two year ago... Best time to lease is when the model changes or a refresh is done.
You should be able to lease an Eor CLS AMG for $4k down and $1200 a month (just a guess)
You should be able to lease an Eor CLS AMG for $4k down and $1200 a month (just a guess)
08-14-2012, 08:09 PM
#5
MBWorld Fanatic!
Exactly as dude says above - negotiate the price of the car. Lease, finance, etc doesn't matter. Negotiate a good selling price, payment will be where you want it.
08-14-2012, 08:11 PM
#6
Banned
Leasing and buying are identical in one important way: The dealer still "sells" you a car for the negotiated amount. How you end up paying for the car is a totally different matter: Cash, loan or lease. They get some kickbacks for loans so may try to get to you sign up for a loan instead of paying cash, but other than that, it shouldn't matter to the dealer.
The only thing usually set in stone as far as leasing is concerned is the residual and money factor (interest).
So do not mention the form of payment to the dealer when you are looking at a car. Tell them you are open to all forms of payment (cash/loan/lease). The only thing you are negotiating is the sale price. You do this with the sales guy. Once you have reached an agreement on the sale price, you can discuss the form of payment with the finance manager. Ask in advance what the residual/money factor is on the particular model/year car you are looking at, so you can calculate the lease payments yourself on a smartphone.
Long story short: Negotiate the selling price with the sales guy, Do NOT negotiate the payment.
The only thing usually set in stone as far as leasing is concerned is the residual and money factor (interest).
So do not mention the form of payment to the dealer when you are looking at a car. Tell them you are open to all forms of payment (cash/loan/lease). The only thing you are negotiating is the sale price. You do this with the sales guy. Once you have reached an agreement on the sale price, you can discuss the form of payment with the finance manager. Ask in advance what the residual/money factor is on the particular model/year car you are looking at, so you can calculate the lease payments yourself on a smartphone.
Long story short: Negotiate the selling price with the sales guy, Do NOT negotiate the payment.
@CashCanuck: Thanks for the tip too! It would be nice to claim a car payment as a corporate expense!
