Everything You Want to Know about Negotiating a Lease

[huntergreen]

Power ram, thanks for taking the time to do a great write up.

 

[IRSmart]

Folks, take this article with a large grain of salt. It has a lot of good information, but also a lot of wrong information. I’m on my phone at the moment but I am happy to do a friendly counter-info post when time permits.

 

[troutspinner]

Folks, take this article with a large grain of salt. It has a lot of good information, but also a lot of wrong information. I’m on my phone at the moment but I am happy to do a friendly counter-info post when time permits.

I would like to hear some other info. Due to this post and my response to the OP, I picked a VIN and had a dealer send me a quote to buy and a quote to lease. I can see advanatages and disadvantages.

Off the cuff, if I were going in without a trade or breaking even on a trade, it seems very interesting. I typically buy an XLT model nicely equipped, ie, Big Horn for Ram. Due to having a good amount of equity, going up to a much better equipped model (limited) and maintaining a similar, possibly even lower than current payment makes it attractive but after 3 years, there is no way I would pull the trigger on a limited again as that price just goes beyond what I feel is responsible spending.

 

[PowrRam]

I would like to hear some other info. Due to this post and my response to the OP, I picked a VIN and had a dealer send me a quote to buy and a quote to lease. I can see advanatages and disadvantages.

Realize that your emailed price quote is a high-ball offer and you are only at step one of the process. If you really want to pursue this get another dealer involved and get them competing for your business.



Sent from my Nexus 7 using Tapatalk

 

[troutspinner]

Realize that your emailed price quote is a high-ball offer and you are only at step one of the process. If you really want to pursue this get another dealer involved and get them competing for your business.



Sent from my Nexus 7 using Tapatalk

Absolutely. I don’t buy a vehicle until I get 20% off MSRP. Both prices are “beginning” prices but show a comparison.

 

[PowrRam]

Absolutely. I don’t buy a vehicle until I get 20% off MSRP. Both prices are “beginning” prices but show a comparison.

Sounds great. Good luck.

Sent from my Pixel 2 XL using Tapatalk

 

[IRSmart]

Realize that your emailed price quote is a high-ball offer and you are only at step one of the process. If you really want to pursue this get another dealer involved and get them competing for your business.



Sent from my Nexus 7 using Tapatalk

This is one of the misinformation posts in here by the way. I don’t want to get into a spitfire discussion, but realize you can’t make blanket statements like this about all dealers. Some, including myself, really will shoot the best lease quote up front. We’re a volume dealer. Payment doesn’t work for you? We’ll make adjustments at your request to term, and or mileage to reduce the payment. Doesn’t work still? Ok, we’ll offer to find another car. But we can’t afford to give our second best price online because the volume dealer down the street isn’t doing that. We’d never have our door open.

 

[PowrRam]

This is one of the misinformation posts in here by the way. I don’t want to get into a spitfire discussion, but realize you can’t make blanket statements like this about all dealers. Some, including myself, really will shoot the best lease quote up front. We’re a volume dealer. Payment doesn’t work for you? We’ll make adjustments at your request to term, and or mileage to reduce the payment. Doesn’t work still? Ok, we’ll offer to find another car. But we can’t afford to give our second best price online because the volume dealer down the street isn’t doing that. We’d never have our door open.

As I said I have done twelve leases in the past 24 years. I've NEVER gotten the lowest price as the first quote given to me. I would venture to say that 99% of the readers of this thread agree with me. This is not misinformation. Your dealership may be the exception to the rule. Do you advertise as a "no negotiation dealer?"

The fact that your dealership has a strategy because of another dealer's pricing policy just reinforces my advice of pitting two dealers against each other.

Sent from my Nexus 7 using Tapatalk

 

[BrianandChrissy]

I've got the popcorn buttered and salted...lmao

Sent from my LGMP450 using Tapatalk

 

[PowrRam]

I've got the popcorn buttered and salted...lmao

Sent from my LGMP450 using Tapatalk

As my 2015 Big Horn lease was a winding down I started looking at new trucks. I wanted the Alpine sound system with the subwoofer because I had it on my 2015, and I wanted heated ventilated leather seats, like my wife has in her 2016 Charger. Turns out I couldn't get these options on a Big Horn, I needed to step up to a Laramie, so I started shopping for Laramies.

I found one equipped the way I wanted and the dealership had a lease calculator on their website. I used the lease calculator using zero down payment, but paying for license and taxes up front, and came up with a number of $460 a month for the Laramie which was $100 more than I was currently paying for my Big Horn and was not in my budget.

I called the dealership and asked for the lease specialist, or whomever has the most experience with writing leases. I told the salesman my lease history, that I had excellent credit, and that I was going to lease a new truck in the next month or so. I gave him the VIN number and the dealership's internal stock number for the Laramie I was interested in. I asked him to give me his best price with nothing down and zero out of pocket, and if it was within my parameters I would come up and drive the truck and possibly make a deal on it that day.

I didn't mention that I had used the lease calculator on their website because I wanted to see what kind of number the salesman would come up with.

He called me back within half an hour and the number he gave me was $720 a month. I was flabbergasted and I started laughing over the phone, then said, "you realize that you've got a lease calculator on your website and I used it with that vehicle and came up with $460 a month. How in the world can you come back at $720 a month?"

He said he brought my lease parameters that I wanted of zero down, nothing out of pocket to his sales manager and that's the number that he got back from him.



Sent from my Pixel 2 XL using Tapatalk

 

[IRSmart]

As I said I have done twelve leases in the past 24 years. I've NEVER gotten the lowest price as the first quote given to me. I would venture to say that 99% of the readers of this thread agree with me. This is not misinformation. Your dealership may be the exception to the rule. Do you advertise as a "no negotiation dealer?"

The fact that your dealership has a strategy because of another dealer's pricing policy just reinforces my advice of pitting two dealers against each other.

Sent from my Nexus 7 using Tapatalk

You’ve done twelve leases. I’ve done thousands. I work for one of the largest (read: top five, I don’t like giving away my location) dealership companies in the United States. I’m not saying that your entire post was wrong, but there are indeed some misleading or flat out wrong pieces of information in this post, just like in most “how to buy a car” articles.

 

[BrianandChrissy]

You’ve done twelve leases. I’ve done thousands. I work for one of the largest (read: top five, I don’t like giving away my location) dealership companies in the United States. I’m not saying that your entire post was wrong, but there are indeed some misleading or flat out wrong pieces of information in this post, just like in most “how to buy a car” articles.

OPCORN:

Sent from my LGMP450 using Tapatalk

 

[troutspinner]

You’ve done twelve leases. I’ve done thousands. I work for one of the largest (read: top five, I don’t like giving away my location) dealership companies in the United States. I’m not saying that your entire post was wrong, but there are indeed some misleading or flat out wrong pieces of information in this post, just like in most “how to buy a car” articles.

I’d like to hear from you about negatives and positives of leases since you are in the profession. Are there any “gotcha” type scenarios a consumer should be aware of? Obviously going over mileage or returning a damaged vehicle is going to cost you but anything else?

@PowrRam mentioned about replacing tires on owned vehicles as a cost of ownership where he also mentions you won’t have to on a leased vehicle. I believe this is based on his opinion of wear. I typically need to replace tires at 25-30k as I don’t put many highway miles on my truck, there is a lot of around town driving and that distorts what people think you should normally get out of a tire.

 

[PowrRam]

You’ve done twelve leases. I’ve done thousands.

Yep. Acknowledged this in the second paragraph of my write-up.

I work for one of the largest (read: top five, I don’t like giving away my location) dealership companies in the United States. I’m not saying that your entire post was wrong, but there are indeed some misleading or flat out wrong pieces of information in this post, just like in most “how to buy a car” articles.

I'm relating my experiences and knowledge I've gained over the years. I don't know how I can have a "flat out wrong" experience. Please enlighten the group as to what is misleading and wrong about what has happened to me and what I observed.





Sent from my Pixel 2 XL using Tapatalk

 

[troutspinner]

@IRSmart So no advice for leasing? You called @PowrRam out but didn’t give any true rebuttal except that you’re a sales person.

 

[GOATram]

Excellent write-up. Dealerships would like to see those naive buyers who swallow everything that they tell them. Forums and especially threads like these are making us buyers more educated. Of course, the dealiars won't like that. So they have their own Messengers hiding in the forums spreading false information. IRSmart is a good example.

I have only leased once and it wasnt an ideal situation because I went over the mile limit. I may lease again but buying is my first preference not because I think leasing is a bad idea, but only because it doesn't really work for me. For certain people it works perfectly .

Regardless of whether you buy or lease, you should never believe everything a dealer says. Always negotiate. I am always baffled at those people who buy trucks with MSRP minus rebate and believe they got a great deal because the dealiar told them.

Be educated and it is nice to be skeptical of what the dealers say...

 

[smiley]

I am a Dave Ramsey fan. He says no leases but he also says people don’t need credit which is not true you can’t even rent a house without credit and almost certainly can’t buy one. If leasing works for you I say great. I put on too many miles and I am cheap. I have an old commuter car I just got for trips where I need a fuel miser and if it breaks I can fix it myself mostly so I am not too worried. I do love new vehicles and can see why people like leasing.

 

[GOATram]

I am a Dave Ramsey fan. He says no leases but he also says people don’t need credit which is not true you can’t even rent a house without credit and almost certainly can’t buy one. If leasing works for you I say great. I put on too many miles and I am cheap. I have an old commuter car I just got for trips where I need a fuel miser and if it breaks I can fix it myself mostly so I am not too worried. I do love new vehicles and can see why people like leasing.

If everyone starts following Dave Ramsey our country will go broke in a few days. Credits, loans, and mortgages are essential part of our economy. It adds to the diverse financial freedom and security that we have as individuals. Dave Ramsey teaches a sort of crazy financial measures and he makes millions marketing those things. It is good for people who like to hear those kinds of things.

 

[PowrRam]

If everyone starts following Dave Ramsey our country will go broke in a few days. Credits, loans, and mortgages are essential part of our economy. It adds to the diverse financial freedom and security that we have as individuals. Dave Ramsey teaches a sort of crazy financial measures and he makes millions marketing those things. It is good for people who like to hear those kinds of things.

WASHINGTON, D.C.—Admitting that he is “in over his head” about how to tackle the nation’s $21 trillion in debt, President Donald Trump called in financial guru Dave Ramsey to help the Federal Government figure out how to handle the its finances more frugally and eventually pay off all of its liabilities.

After crunching the numbers, Ramsey reportedly began to lecture members of the Federal Government about their failure to control their spending impulses and avoid racking up trillions of dollars in credit card debt. According to sources, Ramsey then passed out a stack of envelopes with various labels like “Defense,” “Education,” and “Welfare,” and told America’s leaders they would only be able to spend whatever cash they budgeted in each category until the next wave of taxes comes in.

Finally, in a dramatic gesture, Ramsey reportedly produced a large pair of scissors and cut up the nation’s gigantic credit card into tiny pieces.

https://babylonbee.com/news/dave-ramsey-puts-federal-government-strict-envelope-budget-plan/
-----

(Site is a satirical news site like The Onion, but with Christian themes.)

Sent from my Nexus 7 using Tapatalk

 

[GOATram]

WASHINGTON, D.C.—Admitting that he is “in over his head” about how to tackle the nation’s $21 trillion in debt, President Donald Trump called in financial guru Dave Ramsey to help the Federal Government figure out how to handle the its finances more frugally and eventually pay off all of its liabilities.

After crunching the numbers, Ramsey reportedly began to lecture members of the Federal Government about their failure to control their spending impulses and avoid racking up trillions of dollars in credit card debt. According to sources, Ramsey then passed out a stack of envelopes with various labels like “Defense,” “Education,” and “Welfare,” and told America’s leaders they would only be able to spend whatever cash they budgeted in each category until the next wave of taxes comes in.

Finally, in a dramatic gesture, Ramsey reportedly produced a large pair of scissors and cut up the nation’s gigantic credit card into tiny pieces.

https://babylonbee.com/news/dave-ramsey-puts-federal-government-strict-envelope-budget-plan/
-----

(Site is a satirical news site like The Onion, but with Christian themes.)

Sent from my Nexus 7 using Tapatalk

That is hilarious. The guy is not in touch with reality at all. I can't believe how he makes millions selling this crazy stuff. He is so much as gainst credit cards but his web site accepts credit cards for paymnent. You've got to admit he is a marketing genius.