Can you bargain a lease package?

[DrQuinn]

So, paycheck #2 is coming on Tuesday. Yippee! I am in the market for a new car, and am probably going to end up leasing a car for the first three years (so after three years, i can REALLY get teh car i want). Regardless, I've never leased a car, just purchased my last three.

Is it possible to bargain on a lease package? For ex, the car company I plan to buy from has a lease special, $599 a month with a couple G's down, a national promotion. is it possible to bargain it down? Has anyone ever done this?

Oh, and to keep it in the EM forums and not closed by those dang moderators, uhm, how long should my personal statmeent be?
Q

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[BKN]

So, paycheck #2 is coming on Tuesday. Yippee! I am in the market for a new car, and am probably going to end up leasing a car for the first three years (so after three years, i can REALLY get teh car i want). Regardless, I've never leased a car, just purchased my last three.

Is it possible to bargain on a lease package? For ex, the car company I plan to buy from has a lease special, $599 a month with a couple G's down, a national promotion. is it possible to bargain it down? Has anyone ever done this?

Oh, and to keep it in the EM forums and not closed by those dang moderators, uhm, how long should my personal statmeent be?
Q

Any contract can be negotiated. Just be prepared to walk away if you can't get what you need.

A suggested quick read is "You can negotiate anything" by Herb Cohen. Written in early 80s, still in print. I found it very useful when just out of training.

So what do you want to lease?

 

[pseudoknot]

Yes, absolutely you can bargain on a lease. Leasing a car is just like buying it and planning to sell it at the end of a fixed period, except that you only pay for the depreciation during that time. They tend to try to hide the interest rate they are charging you--for a lease it's called a "money factor," which is like an APR divided by 2400.

Also, it's usually not advisable to put money down on a car lease, because it doesn't help you build equity and the money is lost if anything happens to the car.

There's a lot of really good info at http://www.edmunds.com/advice/leasing/articles/index.html

 

[Hard24Get]

So, paycheck #2 is coming on Tuesday. Yippee! I am in the market for a new car, and am probably going to end up leasing a car for the first three years (so after three years, i can REALLY get teh car i want). Regardless, I've never leased a car, just purchased my last three.

Is it possible to bargain on a lease package? For ex, the car company I plan to buy from has a lease special, $599 a month with a couple G's down, a national promotion. is it possible to bargain it down? Has anyone ever done this?

Oh, and to keep it in the EM forums and not closed by those dang moderators, uhm, how long should my personal statmeent be?
Q

My mom is quite excellent at negotiating leases for luxury cars. She often gets quotes from two or more local dealers and then pits them against one another. Usually it's good to start with an online quote from the company (which sometimes already offers a discount), and to get pre-approved for a lease online. Then you've got them where you want them.

Related to this, I am wondering what is the best car for a med student interested in emergency medicine to drive, and should I talk about it in my personal statement?

 

[DrQuinn]

Hm, thanks for the info.

Right now its between a 2006 Acura RL, or an 2006 Infiniti G35 coupe. Had thought about the BMW 3 (too many people have them), the Audi A3 (gonna give it a test drive), Audi A4 (probably not), Cadillac CTS (probably not), or the Lexus IS250/350 (still gotta give it a test drive).

I think the RL isn't exactly a huge looker, but the inside is amazing, its a techie-lover's paradise, and its got AWD. I can get new 06s for 41k (MSRP 49).

I've always liked the G35 coupe... such a beautiful car, and relatively cheap (loaded 38k). A new one is coming out in the spring but I'm gonna need me a car in the next few months. Of course I'd get the 6 speed.

Q

 

[SkylineMD]

Hm, thanks for the info.

Right now its between a 2006 Acura RL, or an 2006 Infiniti G35 coupe. Had thought about the BMW 3 (too many people have them), the Audi A3 (gonna give it a test drive), Audi A4 (probably not), Cadillac CTS (probably not), or the Lexus IS250/350 (still gotta give it a test drive).

those are some pretty good choices there. Of course with a few of those cars, you are going to have to deal with a redesigned model in the next year or two --- notably the G35 as you've mentioned and the A4 (and I believe the CTS is due for one also now).

I think the RL isn't exactly a huge looker, but the inside is amazing, its a techie-lover's paradise, and its got AWD. I can get new 06s for 41k (MSRP 49).

I agree. That car has all the technology one would want in a car not to mention the build quality is pretty nice inside. They didn't cheapen the materials inside at all and the AWD is one of the best out there (though the name could have sounded a little less childish - super handling). The price is great now and mostly because for some reason the sales of the RL are sliding.

I've always liked the G35 coupe... such a beautiful car, and relatively cheap (loaded 38k). A new one is coming out in the spring but I'm gonna need me a car in the next few months. Of course I'd get the 6 speed.

That is such a sweet ride but the only thing I don't like about that car is the materials they tend to use inside. Also, if you go to the dealership, close the door of the car and you will hear this clanking/rattling every time the door closes. It just doesn't feel solid (compared to a bmw that is).

Maybe you could go check out the IS350. The exterior is nice (not great but nice) but the inside is just amazing. They really outdid themselves with the fit and finish on this car and I think it's loaded for 41-42 but the downside is no manual. Also, compared to the G35 you won't have to worry about your car becoming out styled by the new version though there aren't any significant changes being made from what I have read up on.

The best thing to do is to drive the hell out of each one and then write down the things you liked about it and stuff you hated. It'll be easier to make a decision once you do that but the cars you have chosen are really nice... it'll be tough.

The way I would rule out a few cars is decide between AWD and RWD first.

 

[SkylineMD]

oh i forgot to really answer the question. Yeah its possible to haggle on the lease package. As someone said earlier, avoid putting a down payment if you can as that money is lost money. They pressurize you into "lowering your monthly payment" but you lose that money if something happens. You can first haggle the price of the car and then work the lease off that value rather than the MSRP they will give you. German car dealers are tough to get them to drop the price by much (most i've heard is 1500 for an outgoing year model and 7-900 for current year), while the japanese and american brands are much easier to get them to budge. But if you can get the initial price dropped, itll save you some money here and there. You could maybe even see the number they give you and say that you dont like the figure and you want to keep all the downpayment stuff the same but just drop the monthly by 20-30bucks. It's worth a short. The general rule is for every 1000 dollars put down or value of the car, the monthly payment is higher by 20dollars.

Keep us updated

 

[EctopicFetus]

Quinn do yourself a favor and look at the deals people get on Edmunds. It is a great (and free) site for info. I recently leased a 4runner for less than their advertised lease package.

As BKN said with any of these negotiations be prepared to walk away. My method is decide on a car along with color options etc.

Then email or call and say exactly how much you want to put down (my rec on a lease is 0 down). Then email every dealer near you. Then email back and forth and try to get the best price for you.

Lastly as far as why no money down on a lease? It is my understanding that say you drive off the lot after putting 5K down.. you total your new car. Your insurance company wont cover your 5K down. it will simply pay off the car and you are out 5K for nothing. (there is more on this on the Edmunds site). Also you can find what specials car companies are running on that same site.

Good luck..

 

[DrQuinn]

Yeah I've been going over the Edmunds site for quite some time. But personally have never leased before (only purchased). Nice to know I can bargain a bit, that's the fun part (but can be taxing).

I plan on emailing several of the dealers in the area just to see what kind of email deals they are gonna give out. The great thing about the RL that skyline mentioned is they're not selling very well (probably because the styling isn't that edgy), and Acura is really trying to get them off the lot. MSRP is 49-52, but I've already had a dealer email me for a new 06 for 41000. Since Acura is asking for 2k down and 599 a month, I'm hoping that since they're discounting so much they will also drop the lease stuff, too.

Q

 

[pseudoknot]

One thing to remember when leasing is that since you're paying only for the depreciation, sometimes the more expensive car isn't really much more. When my friend was looking at the BMW 330i vs. Infiniti G35 a few years ago, the BMW lease was almost the same even though the car was a lot more expensive, because the BMW had a much higher residual.

 

[EctopicFetus]

Yeah I've been going over the Edmunds site for quite some time. But personally have never leased before (only purchased). Nice to know I can bargain a bit, that's the fun part (but can be taxing).

I plan on emailing several of the dealers in the area just to see what kind of email deals they are gonna give out. The great thing about the RL that skyline mentioned is they're not selling very well (probably because the styling isn't that edgy), and Acura is really trying to get them off the lot. MSRP is 49-52, but I've already had a dealer email me for a new 06 for 41000. Since Acura is asking for 2k down and 599 a month, I'm hoping that since they're discounting so much they will also drop the lease stuff, too.

Q

Quinn,

Watch out for the lease throw in BS.. basically the try to charge all these funky fees which are nothing more than profit. lastly make sure you get quotes on the exact same car from people. they like to play games a bit.. but im guessing you are aware of that.

 

[BKN]

Related to this, I am wondering what is the best car for a med student interested in emergency medicine to drive, and should I talk about it in my personal statement?

Get a Yugo, and whimper a lot about the need to get a residency so you can afford a car that derelicts don't laugh at.

 

[Apollyon]

Get a Yugo, and whimper a lot about the need to get a residency so you can afford a car that derelicts don't laugh at.

The best car for residency? 5-series BMW. But that's me.

 

[DrQuinn]

The best car for residency? 5-series BMW. But that's me.

Me likely long time, and have always fonded for an M5. But I gotta buy a house/furniture/start saving, so I'm only gonna go halfway the first time aroud and get a nice car that'll last me until I can save up for something I really like. I figure a 40k car is enough for now.

Q

 

[Hard24Get]

Get a Yugo, and whimper a lot about the need to get a residency so you can afford a car that derelicts don't laugh at.

Great idea! I am saving for this one:

 

[southerndoc]

Great idea! I am saving for this one:

Don't forget to save extra for the yellow wheels and foglamps. They are not standard.

 

[spyderdoc]

Look at bimmerfest.com. Even if you aren't gonna get a Bimmer, they have a lot of helpful info on leasing in general....got the wifey an X3 via lease (our 1st BMW), and love it. Will probably go for a 5 series when my 4Runner gets "retired". Test drove Bimmers and Lexi...Just no comparison. Bimmer really is head and shoulders above the competition as far as sheer joy to drive....

 

[margaritaboy]

So, paycheck #2 is coming on Tuesday. Yippee! I am in the market for a new car, and am probably going to end up leasing a car for the first three years (so after three years, i can REALLY get teh car i want). Regardless, I've never leased a car, just purchased my last three.

Is it possible to bargain on a lease package? For ex, the car company I plan to buy from has a lease special, $599 a month with a couple G's down, a national promotion. is it possible to bargain it down? Has anyone ever done this?

Oh, and to keep it in the EM forums and not closed by those dang moderators, uhm, how long should my personal statmeent be?
Q

I think your personal statement should be about a page, single spaced plus or minus. Try to keep it conscise, and have a trusted facutly member review it for completeness. Hope that helps Quinn.

 

[NinerNiner999]

There is a way around the down payment issue - some manufacturers offer a buyer-ready or "hybrid" lease. In these cases, you negotiate your "lease" but essentially take ownership of the car (keep the title). This allows you to build equity in the car. There is a negoatiated buy out price at the beginning (like a lease), but your payments are only for about the first half of the car's price.

A 41k car with this plan should cost around $500-550 for 15k miles/year, 50% residual, and you keep the title (which means you can buy gap insurance and get the full price of the car should you total it)...

 

[Jeff698]

Don't forget to save extra for the yellow wheels and foglamps. They are not standard.

+/- on the foglamps but don't pinch pennies when it comes to the rear window defroster. You'll need it to keep your hands warm when pushing it in the winter.

Take care,
Jeff