Two Lease Questions
Thread Starter
Member
Joined: May 2003
Posts: 92
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From: Lawng Island NY
2015 BMW 640ix GC (Ruby Black)
Two Lease Questions
I've been researching Leasing for a while, although never actually done it. Now, however, as my car is about to be delivered (hopefully) mid-February I have two questions:
1. My understanding is that you want to employ as little capital cost reduction (e.g. trade-in) as possible to avoid the case where your new car is totaled and you lose the value of the CCR. Is this correct? Does it then follow that, despite the Sales Tax Credit benefit (I'm in NY) it would be best NOT to trade-in a car when you're leasing?
2. This is more strategy: my dear wifey wanted a special color combo so I was forced to order my MB back in October, at which point I negotiated (poorly) and indicated on the papers I would be paying cash. I really would have preferred to lease but I didn't know what the rates would be 4 months in the future so didn't see the point. Now that the car is being delivered I'd like to lease but of course have very little leverage since I've signed for the car and left a deposit. Would it make sense to try and get lease quotes from OTHER than MB and use THOSE as leverage, in the sense that if I can't get a reasonable quote from the dealer I could go with another company and as far as my dealer is concerned it would be a cash transaction? Does that make any sense?
Any recommendations for 3rd party leasing companies?
Thanks in advance for any pointers.
=NLK=
1. My understanding is that you want to employ as little capital cost reduction (e.g. trade-in) as possible to avoid the case where your new car is totaled and you lose the value of the CCR. Is this correct? Does it then follow that, despite the Sales Tax Credit benefit (I'm in NY) it would be best NOT to trade-in a car when you're leasing?
2. This is more strategy: my dear wifey wanted a special color combo so I was forced to order my MB back in October, at which point I negotiated (poorly) and indicated on the papers I would be paying cash. I really would have preferred to lease but I didn't know what the rates would be 4 months in the future so didn't see the point. Now that the car is being delivered I'd like to lease but of course have very little leverage since I've signed for the car and left a deposit. Would it make sense to try and get lease quotes from OTHER than MB and use THOSE as leverage, in the sense that if I can't get a reasonable quote from the dealer I could go with another company and as far as my dealer is concerned it would be a cash transaction? Does that make any sense?
Any recommendations for 3rd party leasing companies?Thanks in advance for any pointers.
=NLK=
Former Vendor of MBWorld
Joined: Jan 2005
Posts: 583
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From: Cincinnati, OH
The simple answers are YES and YES
In more detail:
1) Right, don't put any money down. You can still trade in and if there is equity in your trade, just have them write you a check for the amount.
2) It is always best to compare 3rd party lease options to what the dealer is offering. You can do this through a service like http://www.LeaseCompare.com . As you stated, it would simply be a "cash" transaction for the dealer.
Which Mercedes did you order?
In more detail:
1) Right, don't put any money down. You can still trade in and if there is equity in your trade, just have them write you a check for the amount.
2) It is always best to compare 3rd party lease options to what the dealer is offering. You can do this through a service like http://www.LeaseCompare.com . As you stated, it would simply be a "cash" transaction for the dealer.
Which Mercedes did you order?
Thread Starter
Member
Joined: May 2003
Posts: 92
Likes: 0
From: Lawng Island NY
2015 BMW 640ix GC (Ruby Black)
The simple answers are YES and YES
In more detail:
1) Right, don't put any money down. You can still trade in and if there is equity in your trade, just have them write you a check for the amount.
2) It is always best to compare 3rd party lease options to what the dealer is offering. You can do this through a service like http://www.LeaseCompare.com . As you stated, it would simply be a "cash" transaction for the dealer.
Which Mercedes did you order?
In more detail:
1) Right, don't put any money down. You can still trade in and if there is equity in your trade, just have them write you a check for the amount.
2) It is always best to compare 3rd party lease options to what the dealer is offering. You can do this through a service like http://www.LeaseCompare.com . As you stated, it would simply be a "cash" transaction for the dealer.
Which Mercedes did you order?
I ordered an E63: as I said, I had to do the order because of the color/options. I thought of using a 3rd party lease offer as leverage with my dealer but then I noticed a post indicating that SOME dealers don't "allow" 3rd party leases. Would this kind of restriction have to be in the Sales Agreement or is there an overriding regulation that permits them to disallow third party leases? I'm going to be visiting the dealer again, probably this weekend, to get an updated trade-in value and discuss lease options but wanted to be forearmed.
Thanks for responding.
Norman
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Joined: Feb 2007
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Actually, after posting I visited your site and browsed the message boards. I've seen you post on other sites as well and (once I realized there was a "full disclosure" link) was able to reconcile your "proposed" third party payments with the data posted. Nice site, and informative.
I ordered an E63: as I said, I had to do the order because of the color/options. I thought of using a 3rd party lease offer as leverage with my dealer but then I noticed a post indicating that SOME dealers don't "allow" 3rd party leases. Would this kind of restriction have to be in the Sales Agreement or is there an overriding regulation that permits them to disallow third party leases? I'm going to be visiting the dealer again, probably this weekend, to get an updated trade-in value and discuss lease options but wanted to be forearmed.
Thanks for responding.
Norman
I ordered an E63: as I said, I had to do the order because of the color/options. I thought of using a 3rd party lease offer as leverage with my dealer but then I noticed a post indicating that SOME dealers don't "allow" 3rd party leases. Would this kind of restriction have to be in the Sales Agreement or is there an overriding regulation that permits them to disallow third party leases? I'm going to be visiting the dealer again, probably this weekend, to get an updated trade-in value and discuss lease options but wanted to be forearmed.
Thanks for responding.
Norman
Thread Starter
Member
Joined: May 2003
Posts: 92
Likes: 0
From: Lawng Island NY
2015 BMW 640ix GC (Ruby Black)
A 3rd party lease on a E63 will likely not be any better than MBF, the residual is set very high, just make sure they don't mark up the rate. Buy rate on 24-27 months is 4.00. 3.65 for 36-51, and if you are a 765 trans union you are elgible for tier a1 with is 3.45 on 36-51 months.
Look, there are all sorts of dealers out there, just like all sorts of people. I don't really know what mine is like except I'm ASSUMING that, since they have my deposit, they are going to try to really pile on the extra charges once I ask to lease. I'd LOVE to go in and settle on a deal reasonably close to MB in short order; but in case they balk I have the 3rd party available.
We'll see.
Thanks for taking the time to post your thoughts.
=NLK=
