• Hi Guest: Welcome to TRIBE, the online home of TRIBE MAGAZINE. If you'd like to post here, or reply to existing posts on TRIBE, you first have to register. Join us!
14K Cannabis seed slider pendants by tribe

car leasing tips

aki

TRIBE Promoter
i know, i searched and read the other threads about leasing a car. some useful info, but not what i'm looking for.

i'm trying to figure out how to get the best deal on a lease, and want to hear people's experiences.

i've been told to negotiate the selling price, and not to pay certain fees, etc. but no one has had any specific info. and all the websites I've read are american, so i'm not sure if the info in them applies to canada (regarding fees you shouldn't have to pay, etc).

anyone want to share their leasing experiences or nightmares? or have any tips on what is actually negotiable when i sit down with the sales guy?
 

Ditto Much

TRIBE Member
aki said:
i know, i searched and read the other threads about leasing a car. some useful info, but not what i'm looking for.

i'm trying to figure out how to get the best deal on a lease, and want to hear people's experiences.

i've been told to negotiate the selling price, and not to pay certain fees, etc. but no one has had any specific info. and all the websites I've read are american, so i'm not sure if the info in them applies to canada (regarding fees you shouldn't have to pay, etc).

anyone want to share their leasing experiences or nightmares? or have any tips on what is actually negotiable when i sit down with the sales guy?
Pick the car based on the insurance!! If you are leasing a car you need to get a full insurance package, the difference between 2 cars on lease may only be $50 a month but the difference in insurance can easily be twice that.

Be realistic about what kind of milage your going to drive, more than one friend of mine has gotten into a lease only to have to park the car for 6 months because of high milage.
 

aki

TRIBE Promoter
we've chosen the car and have an insurance quote. now it's just a matter of going in and dealing with the sales guy, which i'm not looking forward to.
 

Ditto Much

TRIBE Member
aki said:
we've chosen the car and have an insurance quote. now it's just a matter of going in and dealing with the sales guy, which i'm not looking forward to.

do you have a trade in? If not try to bid %6 below sticker and settle on %3. On most cars this is about the delaershp profit margin and in the current market they are likely to let it go at cost to make money on the lease and eventual resale of the vehicle.
 

aki

TRIBE Promoter
Ditto Much said:
do you have a trade in? If not try to bid %6 below sticker and settle on %3. On most cars this is about the delaershp profit margin and in the current market they are likely to let it go at cost to make money on the lease and eventual resale of the vehicle.
awesome. thanks. this is the kind of info i'm looking for. i didn't know this.

and no, we don't have a trade-in.
 
Tribe 14K gold cannabis seed slider pendant and chain

Noize

TRIBE Member
don't waste your money on extended kilometres.
i had mine increased by 10,000km per year (4 year lease) and im still going to have to pay an insane amount if i dont want to buy back the car...
but i do a lot of driving...so maybe this won't apply to you
 

The Tesseract

TRIBE Member
yeah, don't bother with the extend K's. waste of money.

Also... in negoitiating your price. If they come to you with an odd amount like... $337/m... Ask them to make it $330 or $325. Chances are, they will drop down a few dollars. I worked my lease down from $340 to $322 a month, based on that premise. BUT... i also got $322 via the pricing for the same car but with stick shift, so i worked on that, then worked back to the auto.
(truth be told, i wanted the stick, but the auto will have better residual at end of lease)
 

octo

TRIBE Member
Unlike Americans, Canadians have not always been able to access dealer invoice pricing, which can help them make an informed offer on a new car.

Today, the information is available — for a fee — through organizations like CarCostCanada.com, but broker Derry cautions the data have to be up-to-date. That's because the dealer cost fluctuates from month to month due to market conditions.

Derry says the industry data reveal markups of 6 to 12 per cent and no more.
that's from an article in the thursday star. they had a section on car buying

there's this too
Leasing has upsides and downsides
Initial costs lower as lessee walks away from car

Cash the cheapest, but short-term loan is a good deal, too
Apr. 27, 2006. 01:00 AM
MARK TOLJAGIC
SPECIAL TO THE STAR


Deciding between financing or leasing your new car is a head-scratcher every bit as perplexing as selecting a good natural gas contract or a smart cellphone package.

For a small minority of new-car buyers today — about 12 per cent, according to industry watcher Dennis DesRosiers — cash is still king. They can pony up the full purchase price at the time of delivery and drive away with no strings attached.

For everybody else, it comes down to financing or leasing.

Professional auto broker Mark Derry says consumers who need a new, warrantied car should lease if they're living on a very tight monthly budget.

"Leasing payments are usually 20 to 35 per cent cheaper per month than financing the same vehicle," he says, which can be music to the ears of a consumer living from paycheque to paycheque.

Derry uses the example of a Toyota Matrix he researched recently for a client. The monthly lease payment was $370 for four years, compared to $482 monthly in borrowing costs for five years (buying it for a total of $28,920).

At first glance, it's a no-brainer; the lease is more manageable. However, reality sets in at the end of the lease after already spending $17,760. The lessee has to either return the car or agree to buy it at its residual value.

Derry says opting for the buyout often means financing the residual value (what it's worth on the market), say $10,000, over three more years at 7 or 8 per cent interest. After seven years of car payments, the lessee will finally get to own her car.

If she had chosen to finance her Toyota from the beginning by agreeing to a higher monthly payment (at a favourable rate of 3.9 per cent), she would have paid less interest and owned the car free and clear after five years of equal payments.

Leasing is enjoying renewed popularity, according to Chris Travell, vice-president of the automotive group of Maritz Research, who tracks the trends for the auto industry. Last year 44 per cent of car shoppers chose to lease, 10 per cent higher than just a few short years ago.

"Leasing aids a consumer's cash flow," says Travell. "Smaller payments are welcome, or they can get more car for the same amount of money."

Dealers have grown to love leasing again (it fell out of favour in the late 1990s when residuals were often higher than the street value of the vehicles and dealers were swamped with returns), partly because it's an effective loyalty program.

"He knows the actual date the customer is returning," says Travell.

Many lessees can't afford to buy their cars, so they return them and immediately step into a new car and subsequent lease, often at the same dealership.

Pesky charges such as reconditioning fees for small dents and scratches may magically disappear if you sit down to talk about your next car.


--------------------------------------------------------------------------------
`If you're doing more than 35,000 km per year, you shouldn't be leasing'

Mark Derry, auto broker

--------------------------------------------------------------------------------


One charge that won't disappear is any mileage over the contracted limit. If you travel more than the 20,000-24,000 km per year most leases provide, Derry recommends buying extra kilometres at the time of the lease negotiation.

"Try to be realistic in terms of how much driving you do in a year and buy that amount up front," he says. "Some manufacturers, such as Chrysler, will rebate you for any unused extra mileage you bought in the contract.

"If you're doing more than 35,000 km per year, however, you shouldn't be leasing."

Also be mindful of the "$0 down" trap. In reality, it may not include freight and PDI on the vehicle, licence plates and security deposit.

It could add up to $3,000 needed before driving away — a steep sum for some cash-strapped consumers.

George Iny, president of the Automobile Protection Association, recommends specifying a true zero-down by amortizing all the associated purchase costs over the life of the lease. It makes it easier to compare apples with apples as you shop.

Iny says there are some good lease deals out there, but consumers have to be vigilant. Advertised monthly lease payments of $139 sound too good to be true — and usually are.

Extra-low payments require a hefty down payment and are front-end loaded with high transportation costs ($1,400 for a small car is excessive, Iny says) and even a mysterious "acquisition fee."

If you can swing it, financing your purchase is more fiscally prudent, say our experts.

There's no mileage limit to worry about, you're not answerable for the condition of your vehicle and you're the legal owner from the outset. (In a lease, the leasing company owns your vehicle and can even stipulate how much insurance you must buy — Iny half-jokingly likens lessees to serfs.)

In an attempt to make financing more appealing, many manufacturers are offering longer loan terms of six and seven years to shrink the monthly payments.

"Longer terms are hot right now. It's become a mortgage for your car," observes DesRosiers.

In fact, he says, U.S. banks are encouraging buyers to add their car loans to their home mortgage, effectively making their car purchase tax deductible.

No such luck in Canada, but with the average driver keeping a new car 8.2 years, at least the longer loan period makes some sense.

DesRosiers outlines four ways to buy a car, ranked from cheapest to most expensive: pay cash, get a short-term loan (most car loans are open so you can pay it off quicker), arrange a long-term loan (even eight-year car financing is available) and, at the most expensive end, negotiate a lease.

"Think of it this way: you would need two leases, one after the other, to reach the eight-year mark" — and pay off the car before you sell it — "which your neighbour could achieve with one five-year car loan."
 
Tribe 14K gold cannabis seed slider pendant and chain

Caz

TRIBE Member
I honestly don't know, i have a habit of not paying attention to this stuff. Every month, I give a bunch of money to Mazda, and they let me drive this sweet whip. I'm not sure what kind of deal we have, but i think it ends with me owning this badmofo.

hope this helps, though i doubt it..
 

KodiaK

TRIBE Member
lol, leasing... i mean shit, why bother with it? really... to me it's an extended car rental.

why the fuck would one want to put themselves through the bullshit of basically paying off half a car, and then to just turn around and literally GIVE it back to the dealer so they can sell it used and make a profit on it...

i just dont get it. If you can write it off as a work expense like a work truck or some shit, go for it.

and double lol at car dealers trying to convince you with utter pure bullshit arguments like "but you dont have to worry about buying tires or other expensive things!"

Im GLAD i financed my protege.. it's mine now.. and the only expensive thing ive had to do to it in the 5.5 years of owning it... is a new set of tires... 400$.... whoopty fucking do.

guess what people, just about any car on the road these days, will last you at least 10 years if you take good care of it and keep up with the basic maintenence.... unless it says 'mitsubishi' on the side of it (including re badged mitsu's under crysler/eagle over the years) or made in korea... or volkswagons made in mexico... it's a total crap shoot if those cars will last the second you drive them off the lot

and again, there's just way too much bullshit involved with the hidden costs of a lease... it's just a way for the dealer to literally fuck you in the ass for 2 years.
 

AshG

Member
KodiaK said:
lol, leasing... i mean shit, why bother with it? really... to me it's an extended car rental.

why the fuck would one want to put themselves through the bullshit of basically paying off half a car, and then to just turn around and literally GIVE it back to the dealer so they can sell it used and make a profit on it...

i just dont get it. If you can write it off as a work expense like a work truck or some shit, go for it.

and double lol at car dealers trying to convince you with utter pure bullshit arguments like "but you dont have to worry about buying tires or other expensive things!"

Im GLAD i financed my protege.. it's mine now.. and the only expensive thing ive had to do to it in the 5.5 years of owning it... is a new set of tires... 400$.... whoopty fucking do.

guess what people, just about any car on the road these days, will last you at least 10 years if you take good care of it and keep up with the basic maintenence.... unless it says 'mitsubishi' on the side of it (including re badged mitsu's under crysler/eagle over the years) or made in korea... or volkswagons made in mexico... it's a total crap shoot if those cars will last the second you drive them off the lot

and again, there's just way too much bullshit involved with the hidden costs of a lease... it's just a way for the dealer to literally fuck you in the ass for 2 years.
some people like the peace of mind a car that's always under warranty offers, not to mention not driving around in a piece of shit just because its old.
and if you intend to use a car for only a couple years anyway, why oh why would you ever buy?
just a couple thoughts.

there are solid reasons for going both routes; depends entirely on the customer's situation.
 
Last edited:

aki

TRIBE Promoter
thanks for the info

The Tesseract said:
yeah, don't bother with the extend K's. waste of money.

Also... in negoitiating your price. If they come to you with an odd amount like... $337/m... Ask them to make it $330 or $325. Chances are, they will drop down a few dollars. I worked my lease down from $340 to $322 a month, based on that premise. BUT... i also got $322 via the pricing for the same car but with stick shift, so i worked on that, then worked back to the auto.
(truth be told, i wanted the stick, but the auto will have better residual at end of lease)
Tesseract, i'm assuming then you negotiated monthly payments rather than the selling price? it was recommended i negotiate the selling price rather than the monthly payments, though the reason wasn't made clear.

and my gf writes off the car for work.

and re: leasing vs. financing. not all people can afford to finance. sure, leasing seems like a cash-grab by car dealerships, but if that's what's affordable to some people, whacha gonna dooo?
 
Tribe 14K gold cannabis seed slider pendant and chain

lobo

TRIBE Member
I think negotiating the selling price may be one factor but so is the residual value of the car. When you take the difference between the two that's what you're paying for for the next X number of years (plus interest). Talking down the sales guy in the montly rate means that he's changing either the residual value or the selling price.

FYI, I leased a 2001 Grand Am and the guy originally came up with $345/month. I didn't show much interest at that price and he slowly worked his way down to $299/month inclusive. Couldn't resist it at that time but just an example so you know how much of a difference they can come down on.

Lobo
 

KodiaK

TRIBE Member
AshG said:
some people like the peace of mind a car that's always under warranty offers, not to mention not driving around in a piece of shit just because its old.
and if you intend to use a car for only a couple years anyway, why oh why would you ever buy?
just a couple thoughts.

there are solid reasons for going both routes; depends entirely on the customer's situation.
i have personally NEVER met anyone who leases a car for 2 years... and then never gets another vehicle.

im not totally dead set against it, like you said lots of people have great reasons to lease a vehicle. Writing it off as a work expense to me is really the only way to justify it. A city bound person in downtown that dont use it a whole other, a close second.

As for the peace of mind of a warrenty... shit have you actually ever attempted to take a car in for what you think is a warrenty issue? have you been sucessful? I sure as shit wasnt when i tried to take my protege in for a braking system issue i had, they weaseled their way out of it and that's basically what they do at all costs.

It just comes down to self education about the vehicle youre going to own. Why the fuck would you lease something like a honda, toyota, nissan, mazda, any diesel VW when it's well fucking known they just dont simply die. Any decent sized repair issue that would come after the warrenty anyways is a drop in the bucket compared to the money youve saved up after it's paid off vs a monthly lease.

but besides that, when a dealer knows youre coming back in a couple years to get another, why would they bother push a financing deal on a customer when the average person keeps a car for 8 or so years?

every time ive been car shopping, dealers push the lease first, financing second.

also, i once came pretty close to become a car salesmen... and thankfully i wasnt dumb enough to get caught into it, but they basically teach you to push the fuck out of leases at all costs because when you build a raport with a customer and they are 100% happy with you, the dealer, and the vehicle, they know youll be back and that's more bling bling for you.

car dealers and salesmen are snake pieces of shit imo.
bleh </rant>
 

AshG

Member
KodiaK said:
i have personally NEVER met anyone who leases a car for 2 years... and then never gets another vehicle.

im not totally dead set against it, like you said lots of people have great reasons to lease a vehicle. Writing it off as a work expense to me is really the only way to justify it. A city bound person in downtown that dont use it a whole other, a close second.

As for the peace of mind of a warrenty... shit have you actually ever attempted to take a car in for what you

think is a warrenty issue? have you been sucessful? I sure as shit wasnt when i tried to take my protege in for a braking system issue i had, they weaseled their way out of it and that's basically what they do at all costs.
Well meet me. Just leased a car for - not 2 years but 3 - and got rid of it.
I simply don't need it. Of course i'm a city person, so the rationale is well founded, though naturally it depends on the person.

As far as the warranty goes, yeah i've taken in both cars i've leased for warranty. Fixed smooth, if not particularly quickly, but that's dependent on the availability of the parts, etc. As far as the warranty goes, it works the same for new and leased cars - they honour their issues up to a certain time period. Thing is, with leasing, that time period is always within the bounds of the lease; not so with ownershop.

I hear you on the very sketchy nature of the dealers, and i guess i was lucky not to deal with a dealer when dealing with a warranty issue.

Speaking to that point, for those taking in their cars for the end of lease inspection, i'd advise doing that at a dealer closest to you, and late on a saturday morning.
My experience has been that those conducting the test would like nothing better than to check out and get their job over with. To that end, their inspection(in my experience) has been superficial at best when they're pressed for time(as in such a meeting); a good thing for those with questionable wear and tear.

All this said, if your intention is to own this car at some point, there really is no benefit to leasing; its an expensive method of postponing true value payments.
 
Top