So I've gotten figures from 2 dealers based on 2011 Justa - 3 year lease (special rate ending this month)

I'm not getting way into the math of the lease payment - I know you need to get the msrp down then use money factor, residual, whatever else to find out if you're getting a good deal or not. I know, I know. I'm a chump but I just can't get into all that.

So basically I'm sure it's msrp and the special rate they've got going. My real question is whether the out-of-pocket expenses are crazy & I need to try to get them to sharpen their pencils. Obviously I WILL try that but just wondering what I can or should expect them to do.

First dealer says:
$2017 o-o-p (not incl down payment):
1st month pmt., 350 sec dep, DMV fees of 1000 (you pay all the 3.75% tax up front in our state unfortunately), and 'bank fees' which would be around $362 after deducting the other items.

The 2nd dealer says:
$2601 :
300 sec dep, 1st month pmt, doc fee 125, tag & title 290, DMV tax 900, and acquisition (bank fee) 725.

Seems the acquisition or bank fees are all that are really negotiable. Altho' the 2nd dlr's doc fee is on top of even their acqu fee which seems suspect - or is that normal? And if there is a mandatory acqu. fee why didn't the 1st guy add that?

Am I unrealistic or does that seem like a lot?

 

Can I ask why you're leasing? Have you done a real good analysis as to whether this is a good option for you?

Just curious.

 

The bank fee should be the same also if they are running the lease thru the same financial institution. If they're calling it a dealer aquisition fee, that's different, and it can be whatever the dealer wants it to be. Sounds like semantics, but it's not....

The bank fee is what the bank charges to do the lease - should not be negotiable, and depending on who the bank actually is - some charge more than others. Some captive finance deals do not allow for a bank fee.

A dealer aquisition fee is what the dealer charges to do the lease, and that can be $$$ nothing to OMG that's a lot of money and represents what the dealer feels is a fair price for doing your lease paper work and so on on behalf of the bank. IOW, it's a little extra pocket money for the dealer. However, it may not be negotiable either, depending on your state's rules. Basically, if they charge one deal that way, they have to charge exactly the same amount to anyone else who does a lease.

It does tend to make the waters muddy a bit. Probably the best way to compare is simply total of payments plus total out of pocket on delivery.

The residual can vary too since it's based on MSRP, but if the MSRP is the same and there aren't residualizable accessories, the residual $$ should be the same too.

For those of us who live where there's a state line and a dealer on either side, it can really get confusing!

 

Thanks -- yes, I'm talking to dealers in two different states which may make it impossible to compare exact costs so just looking at bottom line signing expense and monthly payment I guess is what I'll do.

theunclesam...Why leasing...well, I'm one of those that wants a new car every couple (3 or 4) years and always to have it in warranty. In the past whenever I paid off a loan the car was then 'old' to me and ready to be traded in so basically I always had a car payment and am fine with that.
And at this point w/out a tradein switching to financing would mean a big cash outlay and that gives me pause. So, might be something to rethink in the future but for today the lease is my best option.

 

Sparky, they are somewhat playing games with you.

If you are taking advantage of the "lease special" from Mini, the Lessor will always be MINI Credit. Therefore, the lease acquisition fee will be the same wherever you purchase. If the dealer wants you to pay it upfront, they are doing so to show you a lower payment.

The dealer DOC fee is basically pure profit and is always negotiable. The salesman's statement, one pays...all pay, sounds good but is erroneous. In most States it cannot be documented by reading the law and even if it is documented, the dealer always has the option to offer more discount equivalent to the DOC fee. Something I have done and seen done a thousand times.

Most lease companies allow a cap cost on the lease of 110-120% of MSRP depending on the individuals credit. If MINI is that way, obviously there is room to accommodate the cash upfront rules. You would have to ask dealers to find what the current allowable terms are.

At the end of the day, the only two factors important to you are how much cash and how much a month? You are only renting for a specific amount of time. There is nothing wrong with that contrary to any other opinions people who are against leasing may have.

 

I know that's how they make a living etc. and I don't blame them for trying to ask as much as they want and then it's my problem to try to get them to come down. It seems harder with these dealers - more so than others I've dealt with at Lexus or Toyota anyway. These particular MINI salespeople do not call me back. I feel like they must sell enough cars to not be hungry for the business. Wish there were more than 2 dealerships around here.

 

I recently purchased from a local dealer with very high add-on fees. I told them up front I would not pay the fees. I negociated with them and several other dealers. I knew what I wanted and knew I was going to have to order it. I had a great MA at the local dealer that really worked the deal. I told them the best deal I had and they matched it. When we sat down to order they had the add-ons figured in. I reminded them that I wasn't going to pay their fees and they deducted them from the negociated price but leaving the fees in place on paper. The problem with this is the MA doesn't get anything from the fees, it's all dealer gravy. I realize this is an issue between the MA and their management, but it possibly keeps the MA from working hard if he or she knows there isn't much room for them in the deal.

Bottom line is everything on that paper is negociable to include sales tax. Now its going to appear on the contract and they are obligated to pay the state, but there is nothing illegal about you negociating this amount and the dealer deducting it from MSRP.

gary

 

When you say very high add-on fees what ball park - same as mine, around 2K?

I'm asking both of them to do better but they just seem not to be in any hurry at all to get back to me. I guess going in in person is better than working by phone and email.

 

$1600 in add-ons. If you want the best deal email any dealer within 1000 miles and don't be in a hurry. They will get back to you and one of them will have a decent if not great deal. Take this back to your home dealer and negociate from there. They may take or beat the deal...who knows. Did I say don't be in a hurry !!!

gary

 

Yeah, the don't be in a hurry thing is key but that is part of what's stressing me out. The deal they have going now on the lease ends 3/31. Possibly continued next month but I guess no one knows, or will tell you that now.

So we take a chance on losing that - wish I new whether they frequently offer specials of this type or if it's rare.

We're getting out of a leased car in May so if we are ordering a MINI the timing of it is also a factor. But -- trying not to be in a hurry and also we have a pretty good offer from the Lexus guy so we can always just get that car again (which I love so no loss other than looking for a fun change).

 

Spark,

Your still better off not rushing. Regarding the lease that is ending, you could always call Lexus Financial and extend your lease a month. If asked why, you just havent decided on what model you want to get next.

 

Thanks Finner. That's something to consider (extending the lease). I really never thought of that as an option.