Do dealers make less profit on a lease v. a purchase?
01-02-2006, 06:11 PM
#1
New Member
Thread Starter
Join Date: Dec 2005
Posts: 63
Likes: 0
Received 0 Likes
on
0 Posts
Do dealers make less profit on a lease v. a purchase?
I'm trying to determine if dealers are less motivated to help customers who are leasing as opposed to purchasing.
Any thoughts?
Any thoughts?
01-02-2006, 06:22 PM
#2
AudiWorld Uber User
Join Date: Jul 2002
Posts: 48,667
Likes: 0
Received 0 Likes
on
0 Posts
um... if you purchase it and they finance they make a killing...
if you are saying you will pay cash or get financing from a bank ...
then they are much more motivated to lease...
think about it ... they lease the car, get it back and lease it again or sell it... they make a killing
then they are much more motivated to lease...
think about it ... they lease the car, get it back and lease it again or sell it... they make a killing
01-02-2006, 06:42 PM
#3
Junior Member
Join Date: May 2005
Posts: 1,057
Likes: 0
Received 0 Likes
on
0 Posts
correct
I paid cash and they were NOT happy about that at all. I mean, they gladly took my money, but right down to the point where I signed the papers (long after the price was agreed upon) they were trying to convince me that I should finance it instead of paying cash.
01-03-2006, 05:01 AM
#5
New Member
Join Date: Jun 2005
Posts: 293
Likes: 0
Received 0 Likes
on
0 Posts
That's exactly right
Dealers try to get buyers or lessees to fixate on monthly payments and manipulations of the trade-in value, rather than purchase price and loan terms. It's a bit like a shell game, with the goal of distracting you from the stuff that really counts.
A smart buyer focuses on reducing the purchase price to the lowest price possible and, if financing, on getting the lowest interest rate possible, and on avoiding too lengthy a loan period.
Buyers who focus on monthly payments get fleeced, and a lessee is generally focused on payments, making them a great target. The fact that leasing jargon is confusing for most people doesn't help buyers, either.
Put it this way: If you pay as little as possible, get the highest trade-in value possible, and get the best loan terms possible, you will end up with the lowest payment possible. Focus on the stuff that counts, and the payment will fall accordingly.
A smart buyer focuses on reducing the purchase price to the lowest price possible and, if financing, on getting the lowest interest rate possible, and on avoiding too lengthy a loan period.
Buyers who focus on monthly payments get fleeced, and a lessee is generally focused on payments, making them a great target. The fact that leasing jargon is confusing for most people doesn't help buyers, either.
Put it this way: If you pay as little as possible, get the highest trade-in value possible, and get the best loan terms possible, you will end up with the lowest payment possible. Focus on the stuff that counts, and the payment will fall accordingly.
01-03-2006, 06:28 PM
#7
When you lease, the dealer SELLS the car to the Leasing company...
and since most (stupid) people never bother to negotiate the sales price in a lease deal, there is probably more potential for profit in a lease than in a normally negotiated sale. That's why, when leasing, you should negotiate the sales price, then have the salesperson calc the lease payments based upon the agreed price, the money factor and the residual value at lease end. Edmunds.com has a lot of useful info about leasing, as well as a lease calculator.
Thread
Thread Starter
Forum
Replies
Last Post
navin in KC
A8 / S8 (D3 Platform) Discussion
17
08-09-2006 06:00 PM
Captain Matt, I be
S4 / RS4 (B5 Platform) Discussion
7
04-18-2005 03:29 PM