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- Vehicle(s) I currently own
- 2006 BMW 330Ci Coupe
There is $900 of dealer cash on the Civic.I'm down to a Toyota vs a Honda, and while Toyota gives $1250 of rebates/incentives, Honda at my area is not having any incentives/rebates. I still would prefer a Honda, but is there any reason why there are no rebates/incentives? Is this just the "wrong" time, or does Honda historically not give rebates/incentives?
Use that knowledge to negotiate a lower price.
I'm new to car leasing and have a question for others with experience.
I'm looking to finance $10,000 worth of agreed upon depreciation over 36 months. My credit is just under 800.
Dealer says that loan will cost me, non -negotiable:
$488.28 in interest (.0013 MF = 3.12% APR)
$795 acquisition fee
$1,283 for a 36 month $10,000 secured loan = 8% Interest Rate
Isn't this a very high cost for $10K worth of secured top tier credit?
All leases have an acquisition fee... From your numbers, I'll assume this is a BMW. $795 is the base fee. It's an assignment fee for the bank, which covers GAP insurance, commission to the dealer's finance office for writing the lease and profit for the bank.
Also, you aren't financing $10K of depreciation, you are financing the full CAP cost.. You are only paying down the $10K of depreciation. Your amount financed over the lease term is the average of the NET CAP Cost and the residual. So, if your CAP is $40K and your residual is $30K, then your average amount subject to the money factor is $35K.
After all, the bank doesn't get the car from the dealer for $10K... They pay the full $40K for it.
I was in the Soap Box Derby in 1970. It was still a huge deal in Akron, then. 260 entrants. Chevrolet was the national sponsor
James Drury (smelled of alcohol, hit on my 19 yr old sister)
Lloyd Hanes (Room 222)
many more that I don't remember
We arrived in town on Monday.. One at a time.. Downtown, where we "signed in".
Spent the week at a Boy Scout camp, while our families were put up at the U. of Akron. On Friday evening, a parade downtown, with each entrant in their own Corvette (67 convertible for me)
Saturday, a big banquet after the races.
First class, all the way.
I have never owned an X5 but I am looking at a 2004 x5 3.0 with 130+k miles. I LOVED it, it had a great feel to it, the inside was in need of some TLC. I have heard they have a history of major engine issues. Anyone have advice on getting into an X5 at this point? Thanks for your input.
I'm a big fan of BMWs, but an old X5 is likely to be a money pit. Especially with 130K+ miles. I advised a friend on buying a similar model about 5 years ago... He only made it 9 months and traded it on a Lexus. He loved the vehicle, but couldn't hack the repair bills.
The M54 engine in that model is not really a trouble spot. That's the same engine they used in a number of models, for years. It's everything else about the car that you'll have to worry about.
A dealer gets money from the bank for writing a loan or a lease. At the base rate (lease or buy) they would usually get a flat amount, say $150... and, if they bump the rate, they can get more.. Also, especially on a purchase, a larger loan amount may include a larger payment for the dealer... On top of this, there may be bonuses for the dealership and/or the F&I manager, based on performance.
As far as negotiating... most dealerships will honor a quote, even if you pay cash, but they may be stickier in negotiating from that point, as they are giving up the fee for writing the financing. Of course, some dealerships will negotiate an unrealistically low price, and then balk when you don't go for the 6.9% interest financing, or the lease money factor that's marked up double.
The F&I office is a giant profit generator for the dealership.. They can easily clear an extra $1000 on what might be a $500 profit deal for selling the car.. (way more, if you are a rube)