I am currently getting around town in a 2000 VW New Beetle and it's time to get a new car. Beyond time. It was probably time years ago.
My boyfriend and I have started test driving a few different options and while we still have few we want to try out, it's looking like it is coming down between the Lexus CT200h (my preference) and the VW GTI (his preference).
My situation is this: my current car is 14 years old with only 82k miles on it but, cosmetically, is in poor condition. So I do not expect I will get much for it. My credit is 728/729/772 from the three credit reporting agencies. I would like to keep my lease payment around $300 but if I can get it down lower? GREAT.
I've never leased a car before so I don't know how to negotiate a better deal. And while my boyfriend cuts a more impressive figure than I do, he's not experienced with leasing either.
Tips? Tricks? What I can expect? Do you think I'll get tier 1 financing? Is it possible to negotiate how much money I have to pony up at signing?
Never put money down (a.k.a capital cost reduction). It's money lost in the case of an accident, and a pointless way to tie up cash for the term of the lease. It will make your monthly payments higher, but it is almost always the better option.
Always negotiate the actual cost of the vehicle first. Then work on the terms of the lease and ask to see all of the numbers being used to calculate (money factor, cap cost, fees, etc). You should have a general idea of what you should be paying before you walk in the door; use that to your advantage. Browse sites like Edmunds to see what others are paying.
Lexus had some great deals on the outgoing 2013 CT (in the range of $250/mo incl tax, w/ no money down). Not sure if they are moving the 2014s with deep discounts yet.
you should be able to get Tier 1 with those scores. the previous posters are correct - you don't have to put down much at all. usually with my leases, i do minimum drive off which is first payment + TTL.
however, with lexus's complimentary first payment, they will pay any payment up to $700 on your first payment, which literally means you can sign and drive with no money out of pocket. you simply have to roll in the fees (acquisition, DMV, etc.) into the lease which overall brings your payment up, but they will pay that first one for you. you can pay up front for those fees if you prefer, but they will still only cover the first LEASE payment amount.
so it really depends how much mileage you need and what kind of monthly payment you are willing to take on. there are fantastic lease deals on the CT right now. without getting too technical, a lease is not that different from a financed vehicle, only you will be giving it back to Lexus after x months or buying it out. you can still (and should) negotiate the selling price as you would if you were buying cash. there is a base rate money factor which is basically the interest rate on a lease, and the residual is typically set by the bank (e.g. Lexus Financial).
2011 CT200h Premium Starfire Pearl/black - July 2011
2013 Mercedes Benz GL550 Steel Grey/black - May 2013
Thanks everyone! I would be completely happy to make a deal on a 2013 if that means I will have a better chance at getting a killer deal; the dealership closest to me still has some on their lot so who knows!
These leases are offered by Lexus. The terms are not usually negotiable including the cap cost. Try your best to discount the car that is where you can get something out of dealers. Once the price of the car is set then you ask to apply the lease terms on it as the principal. Lexus also would not negotiate the residual value at the end of the term. Go to Lexus.com and read the fine print of the offered lease and make sure the dealer(s) do not surge it. Good luck
Lease a new 2014 CT 200h for just $199 per month!
Take advantage of huge savings with a 2014 Lexus CT200 Lease Special.
Lease is for 24 months, 7.5k miles per year. $1995 down plus tax, tag, aquisition, first month payment and dealer/doc fees. with approved credit of 720 beacon or higher. cannot be combined with other offers. includes all rebates and incentives. expires 3/31/14.
As a follow up email from dealer:
Total drive offs would be about $4k - basically an additional $2000 in fees/taxes at drive off - dealer fee in FL is something like $800 - ridiculous.
I think I'll wait until the end of the month - only a couple more days and try to hit:
$0 down - sign/drive - with $250 per month.