Negotiating a lease on RX H 2013 or 2014new
10-21-13, 02:30 PM
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Negotiating a lease on RX H 2013 or 2014new
Hello,
After years of purchasing my cars used including two Lexus at very good wholesale prices, I am considering for the first time leasing a new, rX 450 H. I am considering this for the tax purposes, and to fulfill my latest and greatest hi tech gadget fetish.
Anybody with experience know how to go about doing this correctly. Here are some questions I have.
Here is an example of pain the special in my area it is for the 2013.
2013 Hybrids
http://www.yourlexusdealer.com/yourl...elSubGroup=RXh
After years of purchasing my cars used including two Lexus at very good wholesale prices, I am considering for the first time leasing a new, rX 450 H. I am considering this for the tax purposes, and to fulfill my latest and greatest hi tech gadget fetish.
Anybody with experience know how to go about doing this correctly. Here are some questions I have.
- Do you negotiate the price you may be willing to pay to buy at end of the lease?
- What is the down payment for? Does that cover the monthly rental until Down payment amount runs out? Is this an extra to charge for the privilege of leasing?
- What are the tax license registrations and fees based off of? Are you paying based on the price of the car?
- Doesn't matter what you are paying if you have no intention to buy at the end of the lease? Should you even bother to negotiate the price except for getting lowest monthly payment?
- can I add a towbar to a leased car? How much would they charge me for this? Would I have to pay full price even though I do not own it?
- The lease I am seeing are limiting to 10,000 miles. That seems low. Is this something I can negotiate as well?
- Look like these cars are coming from manufactures, Does this mean I get to pick colors?
Here is an example of pain the special in my area it is for the 2013.
2013 Hybrids
http://www.yourlexusdealer.com/yourl...elSubGroup=RXh
Last edited by 10smom; 10-21-13 at 02:36 PM.
10-22-13, 08:25 AM
#2
Here are some good tips:
Do's and Don'ts When it Comes to Auto Leasing. Most consumers are confused when it comes to car leasing. Here are a few things to help you figure out what you should and shouldn't do if you're thinking about getting into a lease.
DO: Always Negotiate the Purchase Price
Special lease deals from the manufacturer typically offer the lowest lease payments, but you should still negotiate further.
These subsidized lease deals offer inflated residual values and/or lower money factors which result in a lower lease payment.
Dealers have no control over the residual value or money factors, but they can negotiate the suggested selling price that goes along with the lease deal. Always negotiate the price (referred to as the capitalized cost) of the vehicle - even if you're getting a stellar lease deal.
DO: Always Read the Fine Print
When you're shopping for a lease, you'll come across some ads that seem too good to be true. That's because they are.
Do's and Don'ts When it Comes to Auto LeasingMost consumers are confused when it comes to car leasing. Here are a few things to help you figure out what you should and shouldn't do if you're thinking about getting into a lease.
DO: Always Negotiate the Purchase Price
Special lease deals from the manufacturer typically offer the lowest lease payments, but you should still negotiate further.
These subsidized lease deals offer inflated residual values and/or lower money factors which result in a lower lease payment.
Dealers have no control over the residual value or money factors, but they can negotiate the suggested selling price that goes along with the lease deal. Always negotiate the price (referred to as the capitalized cost) of the vehicle - even if you're getting a stellar lease deal.
DO: Always Read the Fine Print
When you're shopping for a lease, you'll come across some ads that seem too good to be true. That's because they are.
DON'T: Terminate Your Lease Early
This is the most expensive mistake you can make when leasing.
Think of a leasing contract like a rental contract. If you rent a house, you usually sign a long term contract and agree to pay penalties if you don't hold up your end of the bargain - same thing with car leasing - only worse!
Every leasing company charges an early termination penalty that can be in the thousands of dollars. There are less expensive ways to get out of your lease early, but none of them are really attractive.
If you're going to lease a car, make sure you can commit to the length of the lease and follow through.
DON'T: Put a Down Payment or Security Deposit
When possible, you should always try to lease a car without a down payment (also called a capitalized cost reduction).
In cases where a down payment is required, you can usually roll it into the monthly lease payment. The main reason you want to do this - if your car is totaled or stolen, the insurance company will provide a payout to the leasing company, but you will have lost your down payment.
Remember - the vehicle is not owned by you - you're just "renting" it from a leasing company. Your insurance company has no obligation to pay you for any money you lost as a down payment.
In addition to no down payment, you should also try to get the leasing company to waive the security deposit. Many will do so, sometimes with a slight increase in the money factor (interest rate).
The reason you want to waive the security deposit is because some consumers never get it back at the end of the lease. Sometimes they forget about it, or the leasing company will take advantage of you by charging excessive wear and tear on the vehicle.
If they don't have your security deposit, it puts you in a better negotiating position to fight excessive charges.
DON'T: Accessorize a Leased Vehicle
As much as you may want those fancy wheels or premium sound system, getting these kinds of accessories will hurt you financially when leasing a car.
Leasing companies have a limit on the retail value they assign for each model. If you over-accessorize the vehicle, you're going to be paying for equipment that you'll only use for 3 or 4 years.
You're essentially buying this stuff for the next person that owns the vehicle, so be careful which options you add to the vehicle.
DO: Always Negotiate the Purchase Price
Special lease deals from the manufacturer typically offer the lowest lease payments, but you should still negotiate further.
These subsidized lease deals offer inflated residual values and/or lower money factors which result in a lower lease payment.
Dealers have no control over the residual value or money factors, but they can negotiate the suggested selling price that goes along with the lease deal. Always negotiate the price (referred to as the capitalized cost) of the vehicle - even if you're getting a stellar lease deal.
DO: Always Read the Fine Print
When you're shopping for a lease, you'll come across some ads that seem too good to be true. That's because they are.
Do's and Don'ts When it Comes to Auto LeasingMost consumers are confused when it comes to car leasing. Here are a few things to help you figure out what you should and shouldn't do if you're thinking about getting into a lease.
DO: Always Negotiate the Purchase Price
Special lease deals from the manufacturer typically offer the lowest lease payments, but you should still negotiate further.
These subsidized lease deals offer inflated residual values and/or lower money factors which result in a lower lease payment.
Dealers have no control over the residual value or money factors, but they can negotiate the suggested selling price that goes along with the lease deal. Always negotiate the price (referred to as the capitalized cost) of the vehicle - even if you're getting a stellar lease deal.
DO: Always Read the Fine Print
When you're shopping for a lease, you'll come across some ads that seem too good to be true. That's because they are.
DON'T: Terminate Your Lease Early
This is the most expensive mistake you can make when leasing.
Think of a leasing contract like a rental contract. If you rent a house, you usually sign a long term contract and agree to pay penalties if you don't hold up your end of the bargain - same thing with car leasing - only worse!
Every leasing company charges an early termination penalty that can be in the thousands of dollars. There are less expensive ways to get out of your lease early, but none of them are really attractive.
If you're going to lease a car, make sure you can commit to the length of the lease and follow through.
DON'T: Put a Down Payment or Security Deposit
When possible, you should always try to lease a car without a down payment (also called a capitalized cost reduction).
In cases where a down payment is required, you can usually roll it into the monthly lease payment. The main reason you want to do this - if your car is totaled or stolen, the insurance company will provide a payout to the leasing company, but you will have lost your down payment.
Remember - the vehicle is not owned by you - you're just "renting" it from a leasing company. Your insurance company has no obligation to pay you for any money you lost as a down payment.
In addition to no down payment, you should also try to get the leasing company to waive the security deposit. Many will do so, sometimes with a slight increase in the money factor (interest rate).
The reason you want to waive the security deposit is because some consumers never get it back at the end of the lease. Sometimes they forget about it, or the leasing company will take advantage of you by charging excessive wear and tear on the vehicle.
If they don't have your security deposit, it puts you in a better negotiating position to fight excessive charges.
DON'T: Accessorize a Leased Vehicle
As much as you may want those fancy wheels or premium sound system, getting these kinds of accessories will hurt you financially when leasing a car.
Leasing companies have a limit on the retail value they assign for each model. If you over-accessorize the vehicle, you're going to be paying for equipment that you'll only use for 3 or 4 years.
You're essentially buying this stuff for the next person that owns the vehicle, so be careful which options you add to the vehicle.
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Davidgs350
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