OT: Auto Lease
- Thread starter JMORC2003
- Start date
How about when you get to he finance guy you pull out your checkbook and "decide" to pay cash or use check from your own finance company?
I'd like this answer too. I guess you have to be sure that your finance deal doesn't have an early payoff penalty.
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I know a guy who did this and got the deal . The sales guy said just do that .
Dealerships just want to sell the loan I guess
Sad reality of the auto biz these days.
Good luck getting the vehicle for anywhere near the price you negotiated. Also, oem's often put extra incentives that are often stackable on vehicles financed through the parent credit co. If you cash deal it or finance elsewhere, you'll lose those incentives.
Are these games primarily played with new cars, or is it the same racket for certified pre-owned?
I’lol probably be in the market for a car soon and I’d prefer to pay cash. Would I be better off looking for a 2021 model year with 15k (ish) miles rather than go through the song and dance on a new car? Or is it just the same game regardless?
One thing with used car is you could be buying one that is “one owner”, but good chance that one owner was a rental car company . Not everyone is cool with that
So then the move is finance it and then pay it off in the first payment?
Are prepayment penalties common?
When interest rates were near zero for the past several years, leases were cheap and IMO a better option then buying. Now, with interest rates considerably higher, the lease prices are way up and not worth it. For the first time, I actually purchased my leased car at the end of the lease for the residual value.
For cpo's, you want to look at the time on the lot to find tje best deal. Used vehicles quickly become lovers tje longer theyre held on a dealership lot. Use cargurus or one of the other 3rd party sites to find this data. Just do NOT under any circumstance fill out a lead form on any 3rd party car site with your accurate phone/ email. You will hate your life.
Used car prices have been coming down since peaking last spring/ early summer as inventory has begun sorting itself out.
The used car market is going to have a major crash at some point. I was optimistic it would have happened this winter, but I dont see that occurring.. this March will be 3 yrs out from covid. Our area is heavily skewed towards leases, so in March, April and May there will be a major glut in lease returns as new leases grinded to a halt due to covid. Those returns make up a bulk of dealership CPO inventory. No returns, less inventory, equals sustained inflated prices
I have no clue. That's a brilliant idea though
Car financing rates are up in the 8-10% range as well. Not a good time to finance either.
The move last summer was to buy out your lease at the end and flip to carmax/carvana for a hefty payday. I know 3 people who netted 5 figures doing this last summer.
It might have the added benefit of the dealership losing all that financing kickback money since the lender never made any money off of it.
Mr Screw is correct. As long as no penalty- perfect.
Class- you are right but it is not a strength in negotiating
Some asked about CPO and used- CPO- again, use the same method as new. Used- oh man, very difficult to maneuver and give advice- is tge car just a few days from auction? And then, why?
Sales people make so much more money on used cars. But…it does not count toward monthly bonus but, they may get a “spiff” on certain used cars to make up for it.
I have seen 3-6k paid out to the sales person on some used cars.
Sales people make so much more money on used cars. But…it does not count toward monthly bonus but, they may get a “spiff” on certain used cars to make up for it.
I have seen 3-6k paid out to the sales person on some used cars.
Also on used cars, screen shot the vehicle price on their website. Countless times I had salespeople come running to me needing me to raise a price asap on a used or CPO vehicle. I've raised prices thousands on used vehicles. Sad, but true.
Another dealership trick is to look at reviews across multiple sites. It's really easy to get people to leave 5 star reviews on Google using different software. That same software also has the ability to keep a bad review written by someone not tech savvy offline; it's sent internally.
When looking at reviews, look across multiple sites and most importantly look at how they respond to negative reviews. If they're ignored or boiler plated responded from the owner, it's a good sign the dealership skews more towards the unsavory side.
Our guys that lived off of used car sales did this all the time. They would have someone who came in for car A and they give away what they want to spend or what they want the payment to be- and the sales person talks them either into an “upgrade” that has a huge spiff for tge sales person or they put them into a lessor car because the sales person convinced them they won’t be able to get them approved for the car they want- meanwhile, that lessor car ends up with the same exact payment.
I hated selling used cars but that was where the profits and commissions were.
Always assume the worst. I've seen referrals of the General Sales Manager get fleeced. The referrals would often get whacked bad in finance. They would assume they were getting the best price from the GSM. "I'm selling you the car at invoice" but would get hosed by the finance manager once their guard was dropped.
Also assume the worst as as most sales floors are a landing spot for people who have done time. I've seen ex-cons become upstanding members of the community, and have witnessed the exact opposite.
Also, there's a non-zero chance that your sales person may be intoxicated or under the influence. Walk the perimeter of the lot and find the spot where the employees smoke. Guarantee you'll find a collection of airplane bottles in the shrubs or weeds.
A favorite story was an old-timer who was also an alcoholic. When he retired, the sales savages were ransacking his desk looking for things for themselves (pens, caluclators, better mouse, etc). One of them took his bottle of hand sanatizer, which was nothing more than vodka he would pump into his drinks.
Moral of this is that you never want to let your guard down
not funny but true in many dealerships- I first started at a dealership in Wayne NJ and the primary dealership they owned there did nothing but hire guys/girls with records. Now, that is a great thing, as they have done their time and should have a way to make some good money...but, ownership ran the place like a prison- treated them all like crap and ruled them with their records over their heads.
On the other hand- I moved to a very high end car dealership in Ramsey and they preferred to hire high end professionals. Ex IBM, ex financial people etc...but the ownership, just couldn't understand that professionals do not take well to being screamed at and berated. Took them a while to understand that their highly educated sales people were working their managers as hard as the buyers. lol
PLEASE give them my congratulations.Tell them NOT to change whatever it is that they have been doing.Keep them chasing the beaced but never catch him.{that's a win win}
I've used a broker for my last several purchases. Very easy. Just need to be clear on exactly what model you want, plus any add ons. He will come back with a price and you take it or leave it, no negotiation. No painful dealing with annoying dealership people. Car is delivered to your house. Go out, inspect it. Make sure everything is included, no scratches, etc. Hand over the certified check. Done and done. I do take my Volvo to the local dealership for warranty work and I assume that they earn a nice return on that work.
Fee is completely transparent. He comes back with a final price, tax and fees included. I compare that with what I hear from the dealerships. It hasn't been close in my cases. One disclosure, my sister-in-law used him about a year ago during the height of the car shortage. She tried to negotiate. It seems it annoyed him and he decided not worth the effort. Len Rosen from Long Island City. Have his phone number but don't want to post it.
Volvo XC90 and a Toyota Highlander (upper model). So not crazy higher end. I had him price out an Acura MDX at the same time I purchased the Volvo. Tex, very well could be. I was just surprised how low he came back with and no hassle. I paid cash but they did offer financing. Or you could arrange your own. Guy was a little quirky but delivered at the end of the day.
Most brokers have a wide range of dealerships they work with in multiple states. This is how they are able to get the best deals. If you are on Instagram you could look up Lease_with_Markin. Michael Markin a broker out of NY and I know a few people that used him and they have nothing but great things to say. The cars may come from anywhere on the east coast but he delivers to your house or office. On his Instagram page you can look at the types of cars. Rolls Royce, Lamborghini's, a lot of BMWs, Nissan, Dodge, etc. I think his contact info is on his Instagram page.
Patk89- Don't go by last year. There were no cars available so very little room to haggle.
I would recommend going to the automakers website of the car you want and build it from scratch to the exact specs you want and send the summary to the broker so they know what they are looking for.
Patk89- Don't go by last year. There were no cars available so very little room to haggle.
I would recommend going to the automakers website of the car you want and build it from scratch to the exact specs you want and send the summary to the broker so they know what they are looking for.
it doesn't matter what state you are purchasing in- the tax is charged in the state you are registering in.
when working at Prestige BMW in Ramsey- we used brokers quite often- My biggest deal was with a new broker- paid me well for about 6 months. But you really are not getting any better deal than you could get on your own.
And this was before all the easy access through the internet that is currently available to you.
I don't want to hijack the thread. Lots of useful information here. Deciding between leasing and buying my next car, which hopefully be towards the end of 2023.
Has anyone ever purchased a vehicle through Costco? How did it work?
Has anyone ever purchased a vehicle through Costco? How did it work?
I didn't even know Costco sold cars. Then again, I thought my Dad was crazy when he suggested I look at them for our honeymoon and they were substantially cheaper than anywhere else.
the challenge today is finding 3 to 4 dealers who have the same car on the ground! and available
I was always too picky on my options. I've ordered almost every car I've ever bought/leased.
It’s funny- before leasing, wife and I did the same. We ordered to what we wanted, until we came to understand that trade in or selling separately- those extras we paid for, didn’t help at all.
My wife got a great deal on a Range Rover Autobiography- 30k below list. She loved it and had it for 8 years. But when selling, you don’t get that value and had to sell equivalent to just a sport supercharger.
