It's the add on's they try to sneak in on you after the deal is made that piss me off.
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Has anyone done a lease?
- Thread starter Huskerfan69
- Start date
I sold cars for 10 years and don't miss it at all. One of the things that wore on me the most was this whole attitude people have about car dealerships. Yes there are shady dealerships and salespeople but they weed themselves out. The last 5 years of selling cars I made a good living off of referrals and repeat customers as most the long term salespeople do and that cant be done by screwing people. Most of the deals I was involved in we justified our numbers through third party sources and tried to the best of our ability to sell good quality cars, new and used. Can't tell you how many times I had customers only willing to trade if I gave them thousands more then could be justified for their trade or heard conversations of people saying it was time to trade their car in because a transmission was starting to slip or some other major thing that they had no intentions of telling the dealership about. One should always be aware when doing any sort of business deal but the whole idea that car dealerships as a whole are out to screw everyone is juvenile.
I don't buy that stuff either and don't see the value in it for me but some do. The reality is that the business is so competitive now that a large dealership could not survive solely on the profit from the actual sale of the car. The additional profit from the things sold in the finance office are very important to the financial success of a dealership. If owning a car dealership was as easy and profitable as most people think the names on the buildings would never change.
I haven't ran the figures recently, but the "rate" on leases is much higher than purchase. It's not considered an interest rate, because it's not a formal loan, but it works the same. When I last purchased I crunched the #s and that rate was about 3.5x what the rate was on a purchase loan.
One option to consider.... certain banks/credit unions offer loans that act like leases. They calculate the estimated depreciation, and your payment is so that the only principle you pay is that depreciation, so the payment is much lower than a standard loan. At the end of the loan term you face a balloon payment, at which time you either refi the balance or you trade the vehicle. So for example, if you do a 40k loan for 3 years with and estimated depreciation of 18k, the 36th payment (end of the loan) will be for $22k.
Note - you are also charged interest but on the entire loan amount.
If you plan on buying the vehicle at the end this is a good option because you own the vehicle - you don't face mileage restrictions, and the rate is much lower. The down side is you are stretching those payments out for a long time.
One option to consider.... certain banks/credit unions offer loans that act like leases. They calculate the estimated depreciation, and your payment is so that the only principle you pay is that depreciation, so the payment is much lower than a standard loan. At the end of the loan term you face a balloon payment, at which time you either refi the balance or you trade the vehicle. So for example, if you do a 40k loan for 3 years with and estimated depreciation of 18k, the 36th payment (end of the loan) will be for $22k.
Note - you are also charged interest but on the entire loan amount.
If you plan on buying the vehicle at the end this is a good option because you own the vehicle - you don't face mileage restrictions, and the rate is much lower. The down side is you are stretching those payments out for a long time.
That's called upselling, and every retailer in America does it. You just don't notice.
Customers lied to us all the time. We took a Dodge Durango in on a trade, the customer said "oh yes it's a great car." We re-sold it a week later and it broke down on the customer - found out the transfer case was being held together by some JB Weld. Nice.
I could write a book on lying, obnoxious, and boorish customers at the car lot. It's like people lose all sense of self-control and decency. My gosh it's just a car.
I don't care what none ya say, used car dealers are all scum, never met one that was honest. They all might as well be Texas fans. Texas/
I actually do notice and decline every one of them. It's frustrating when you make a deal then there's $1000 more on the contract than you agreed to. They look at me like I'm some kind of idiot every time I decline gap insurance or the extended warranty. It's ok when they upsell it's not ok when it's already on the paperwork-gap insurance has been on the last 3 cars I've bought and I make them take it right off. Alot of times they think you won't notice if they stick it into the financing.
Then you need to buy your cars somewhere else.
All three were bought a different dealerships and all 3 tried to gap insurance me. At the end of the day it's not that big of deal but I do know many people won't scour a bill of sale like I do.
I have done a lease because my wife always wants her vehicle under warranty, she doesn't put on a lot of miles and she also gets a new vehicle every 3 years. The cost is a little more than normal payments, but she gets a new vehicle every 3 years and it is under warranty the whole time. For me, it is a winner.
I worked at three dealerships in my 10 plus years of selling cars and not a single one would ever do that. It is a big deal because it’s dishonest and the guys that do business the right way aren’t trusted because of crap like that. Like I said before, people are not stupid so shady practices may work short term but eventually your customer base is gone and your business is in the crapper.
happened twice when I cosigned a loan for my sons and just recently in October on a car I bought. These weren’t small shady dealerships but large respected dealerships. Maybe the current trend here is to put it on a bill of sale and not take it off unless the buyer objects. it’s easy to catch as I offered a out the door price after trade which my salesman agreed to. Go to sign the paperwork and all these fees mysteriously end up in the bill of sale. I explain that I agreed to an out the door price not out the door plus dealer fees price and proceed to walk out. they come out with the song and dance that every vehicle has to have these fees but then figure out how to get back to the price we agreed upon. It’s a BS game 90% of the time and I’m usually a pretty savvy but fair negotiator.
My experiences with car dealerships have been similar to yours. And it is one of the reasons I try to hang on to my cars for as long as possible, so I don't have to go through the b.s. of buying from dealers that always try to screw me.
It is always nickel and dime stuff, but it is still sleazy and I hate doing business with sleazy business people. That is what car dealers are in my experience, every last one of them.
The last car I bought was from a dealership that trumpets no haggle pricing and their straightforwardness. I found the car I wanted, the price was reasonable based on my research, so I agreed to buy it. Got the contract and found the price was $75 higher than what I had agreed to. The extra $75 was for nitrogen in the tires. I started to walk out and so they said they wouldn't charge me for that.
Cockroaches.
when you return it, do they want you to put new tires on it, etc? Ran into that on a Range Rover.
