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ALL About Leasing and Buying

 
Old 07-06-14, 11:27 AM
  #31  
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That's really what it is, understanding the terms and their impact on the deal.

Most people negotiate based on the payment though, that's what the dealer tries to do and they wind up paying way more than they have to.
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Old 07-06-14, 11:29 AM
  #32  
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FastTags, great info and a fascinating read, and this comes from someone who only buys cars (other than one lease once for my wife's car).

Your statement about going to the dealership and showing that you are committed to lease today also applies for those looking to buy a car outright. Once you've done your homework and know what you will pay for a given car, walk into a dealership with your checkbook in hand. Ideally hand the salesman a check for $5000 and tell him if he wants to sell the car today to write out the contract. It is real, real hard to hand that check back to you. Of course you have to be prepared to walk if your offer if not accepted, but even then all is not lost, you may get a phone call back the next day. Also it doesn't hurt to go in near the end of the month, quarter, year.

The only thing I would question is your advice not to buy cars from the north due to transmission problems caused by snow. While some people may have to rock (go from D to R repeatedly) to get out of a snow bank, this is not a common occurrence and rarely causes damage. Personally I would be more wary of cars with trailer hitches. Towing heavy trailers are much more detrimental to a transmission than snow.
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Old 07-06-14, 11:39 AM
  #33  
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This a great write up!

To the OP, you should write car reviews too.
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Old 07-06-14, 12:10 PM
  #34  
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Originally Posted by Nospinzone View Post
FastTags, great info and a fascinating read, and this comes from someone who only buys cars (other than one lease once for my wife's car).

Your statement about going to the dealership and showing that you are committed to lease today also applies for those looking to buy a car outright. Once you've done your homework and know what you will pay for a given car, walk into a dealership with your checkbook in hand. Ideally hand the salesman a check for $5000 and tell him if he wants to sell the car today to write out the contract. It is real, real hard to hand that check back to you. Of course you have to be prepared to walk if your offer if not accepted, but even then all is not lost, you may get a phone call back the next day. Also it doesn't hurt to go in near the end of the month, quarter, year.

The only thing I would question is your advice not to buy cars from the north due to transmission problems caused by snow. While some people may have to rock (go from D to R repeatedly) to get out of a snow bank, this is not a common occurrence and rarely causes damage. Personally I would be more wary of cars with trailer hitches. Towing heavy trailers are much more detrimental to a transmission than snow.
When you rocking the car, you shifting from D to R and vise versa, really fast and that hurts transmission, its not a Manual transmission. I have seen car with broken transmissions right there where they got stuck in then snow. With Auto transm. You would want to get in the habit of stopping the car full only then shifting in to a gear.

Its maybe hard to believe, but its the truth. Cars from north dont last as long, if you look on CL you will find cars in NY state with 120k-150k miles at, in Texas cars run 180-250k miles. That is my personal observation.
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Old 07-06-14, 12:48 PM
  #35  
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Thanks for the replies regarding trade in. I live in CA where we are only taxed on financed amount. So I don't believe there will be tax credit for trade. So let's say buyout is listed as $35K, does that mean my buyout is actually $38150 (9% la county tax). If dealer offers $36k, then that means I'll be $2150 upside down? In this case, I'll just turn car in at end of lease or try to sell private party since my car will be low miles. I have 10k/yr lease but on pace to do only 8.5k miles/yr.

Also, for me, the buyout is (residual plus number of months left times depreciation fee)xsales tax? I don't believe the finance fee should be included but mine is only $3.14/mo after tax.
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Old 07-06-14, 01:14 PM
  #36  
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Originally Posted by FastTags View Post
When you rocking the car, you shifting from D to R and vise versa, really fast and that hurts transmission, its not a Manual transmission. I have seen car with broken transmissions right there where they got stuck in then snow. With Auto transm. You would want to get in the habit of stopping the car full only then shifting in to a gear.

Its maybe hard to believe, but its the truth. Cars from north dont last as long, if you look on CL you will find cars in NY state with 120k-150k miles at, in Texas cars run 180-250k miles. That is my personal observation.
Sorry but I don't believe what you are saying is true. I live in upper state New York and Toronto year round and I never got stuck once in my CT200, never had to rock it out. I also have lots of family members who live in the state and they have never been stuck.
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Old 07-06-14, 01:16 PM
  #37  
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Originally Posted by joebruin View Post
Thanks for the replies regarding trade in. I live in CA where we are only taxed on financed amount. So I don't believe there will be tax credit for trade. So let's say buyout is listed as $35K, does that mean my buyout is actually $38150 (9% la county tax). If dealer offers $36k, then that means I'll be $2150 upside down? In this case, I'll just turn car in at end of lease or try to sell private party since my car will be low miles. I have 10k/yr lease but on pace to do only 8.5k miles/yr.

Also, for me, the buyout is (residual plus number of months left times depreciation fee)xsales tax? I don't believe the finance fee should be included but mine is only $3.14/mo after tax.

If you owe $35k, and the dealers Offer $36k, that means you are making $1,000. The dealer is the one who is paying for the TAX not you. If you decide to sell it to an individual same thing, since they are the one who are registering the car, there for they are who responsible for the TAX on the $35k.

Actually, the dealer will not be paying the TAX either, because the dealer will turn around and sell the car, so the NEW buyer will pay the 9%.

Dealers have this form, which allows dealers to buy cars without paying taxes, turn around and sell it.

As far as the TAX credit, you are correct CA does not allow TAX credit. I doubt you can get Lease trade-in tax credit either.

Last edited by FastTags; 07-06-14 at 01:35 PM.
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Old 07-06-14, 01:20 PM
  #38  
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Originally Posted by LexsCTJill View Post
Sorry but I don't believe what you are saying is true. I live in upper state New York and Toronto year round and I never got stuck once in my CT200, never had to rock it out. I also have lots of family members who live in the state and they have never been stuck.
So you saying people in Northern states do not get stuck in the snow?

I really hope you not implying that this doesn't happen. As I lived in NY state for many years, and I have seen cars on the side of the road stuck every time when a Snow storm went by. What about ditches, you never seen cars in the ditch?

Cars in Norther state are far more worn out than Southern states. The engine take such a beating in the Winter, when temp. go down to 15-20F for weeks after weeks.
Vehicles for months are covered in Salt, Huge Pot holes after a plow truck goes by on the High Way, and of course the Transmission that take a beating every time you get stuck in the snow, or a ditch, or a snow bank. and many many other reason as to why Northern cars are far less valuable than the Southern.
There are many parts of the NY where the snow hits hard and it takes time before the roads get cleared out.

Regardless whether you agree or disagree with my opinion, it is simply my opinion and you are entitled to have your own.

Last edited by FastTags; 07-06-14 at 01:44 PM.
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Old 07-06-14, 01:31 PM
  #39  
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Originally Posted by FastTags View Post
So you saying people in Northern states do not get stuck in the snow?

I really hope you not implying that this doesn't happen. As I lived in NY state for many years, and I have seen cars on the side of the road stuck every time when a Snow storm went by. What about ditches, you never seen cars in the ditch?

There are many parts of the NY where the snow hits hard and it takes time before the roads get cleared out.

Regardless whether you agree or disagree with my opinion, it is simply my opinion and you are entitled to have your own.
I live in Illinois, it's not upstate NY or Canada, but I agree, plenty of people get stuck in the snow during the winter.....
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Old 07-06-14, 01:36 PM
  #40  
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Originally Posted by FastTags View Post
So you saying people in Northern states do not get stuck in the snow?

I really hope you not implying that this doesn't happen. As I lived in NY state for many years, and I have seen cars on the side of the road stuck every time when a Snow s. rm goes by.

There are many parts of the NY where the snow hits hard and it takes time before the roads get cleared out.

Regardless whether you agree or disagree with my opinion, it is simply my opinion and you are entitled to have your own.
I am not saying people don't get stuck in the snow, but to say stay away from Northern cars because the cars get stuck in snow and the transmissions get rocked is absurd.

A few things to consider:

Some Northern provinces snow tires are required.
There are a lot of AWD cars/trucks this way
Higher gas prices in the north might mean people drive less compared to the south, thus difference in high km vs low km on resale. FYI, when I cross the border in Buffalo, I would pay almost $5.50 per gallon in Canada compared to what I pay when I am still in the US. From what I understand, lower states pay much less for gas.

Lastly, I wouldn't trust a southern car up here in the North, I hear the cars are not made to last the winters in the North. (At least that is what the manufactures were saying a few years ago)

When the snow season hits the North, most people do not drive as much compared to the summer. The southern states do not have this issue as it is mild with no snow year round.
I doubt there is much worth in the claim that northern cars don't last because the trannys are rocked in the snow.

Last edited by LexsCTJill; 07-06-14 at 01:42 PM.
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Old 07-06-14, 01:47 PM
  #41  
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Originally Posted by LexsCTJill View Post
I am not saying people don't get stuck in the snow, but to say stay away from Northern cars because the cars get stuck in snow and the transmissions get rocked is absurd.

A few things to consider:

Some Northern provinces snow tires are required.
There are a lot of AWD cars/trucks this way
Higher gas prices in the north might mean people drive less compared to the south, thus difference in high km vs low km on resale. FYI, when I cross the border in Buffalo, I would pay almost $5.50 per gallon in Canada compared to what I pay when I am still in the US. From what I understand, lower states pay much less for gas.

Lastly, I wouldn't trust a southern car up here in the North, I hear the cars are not made to last the winters in the North. (At least that is what the manufactures were saying a few years ago)

When the snow season hits the North, most people do not drive as much compared to the summer. The southern states do not have this issue as it is mild with no snow year round.
I doubt there is much worth in the claim that northern cars don't last because the trannys are rocked in the snow.

I edited my prev post. Enjoy the read

http://www.saturnfans.com/forums/sho...d.php?t=111355

http://www.europeantransmissions.com...Principles.htm

Read this one

http://www.atra.com/articles/automot...r_transmission

Last edited by FastTags; 07-06-14 at 03:41 PM.
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Old 07-06-14, 01:49 PM
  #42  
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Originally Posted by FastTags View Post
If you owe $35k, and the dealers Offer $36k, that means you are making $1,000. The dealer is the one who is paying for the TAX not you. If you decide to sell it to an individual same thing, since they are the one who are registering the car, there for they are who responsible for the TAX on the $35k.

Actually, the dealer will not be paying the TAX either, because the dealer will turn around and sell the car, so the NEW buyer will pay the 9%.

Dealers have this form, which allows dealers to buy cars without paying taxes, turn around and sell it.

As far as the TAX credit, you are correct CA does not allow TAX credit. I doubt you can get Lease trade-in tax credit either.
Thanks. This makes sense. For those who make equity in trade, can you actually pocket that equity w/o obligation to put that as down payment on next vehicle purchase/lease?
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Old 07-06-14, 01:50 PM
  #43  
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Originally Posted by joebruin View Post
Thanks. This makes sense. For those who make equity in trade, can you actually pocket that equity w/o obligation to put that as down payment on next vehicle purchase/lease?
I never done it, but why not. It wont make a difference which way the cash goes.

Another thing to remember, since you are not gonna get the TAX credit, when you buying the car, the dealer may either offer you More for your trade or a better price on the NEW car purchase. In either way, it doesn't make a difference, you are NOT most likely going to get a GREAT value on the TRADE IN and a GREAT discount on the NEW car.

Last edited by FastTags; 07-06-14 at 02:04 PM.
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Old 07-06-14, 01:54 PM
  #44  
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And I still think you are full of it.
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Old 07-06-14, 02:03 PM
  #45  
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Originally Posted by LexBob2 View Post
I live in Illinois, it's not upstate NY or Canada, but I agree, plenty of people get stuck in the snow during the winter.....
So what? Does that mean you should avoid Northern cars? Seriously, how many times will someone get stuck in the snow that the their cars tranny is rocked causing wear and tear? So now we have to stay away from northern cars.

I would probably be more worried about a car from Texas being brought up to the North, manufactures have said that the southern cars are not built for the North. So they say...
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