Lease Questions - Ask Here

rroyce10 · February 2001

Make sure you are in touch with Mazda Leasing (Not the dealer) - When Mazda agrees to a number...they will send you a letter via mail ( or have them fax..or even Email ) Just make sure you have a "written" copy.
Make sure you know who spoke with ..their full name/ time you spoke with them / position / what the final # is ..etc.

Get your financing together....shop around, check your bank, credit union, who ever has the best rate ..etc, your credit I'm sure, is pretty Ok coming off a lease ...You may be able, to finance the truck with little or no money down ..because it does have a strong book (NADA)

And again...you shouldn't worry about the damage..When you are buying the vehicle -- Mazda lease. can care less -- I doubt the Used car Mgr at the store you will deal with, will even spend 10 seconds to look out the window...remember-- at this time, the dealer is -out of the loop- ..unless you decide even to use one of their finance sources.
I have been through this scenario a hundred times...The first store I bought in 1990 was Mazda, so relax ...If you need more help just email me.

Good luck.
Terry.

km99cobra · February 2001

Car Man, posted the following on the Acura 3.2 CL Lease discussion board and want to get your insight on whether or not this is a deal worth considering. I wasn't sure if we wanted to lease again, but at 15,000 miles/yr and a decent payment for a nice car it has us thinking....

"Went to local dealer to check out the 2001 CL-S on recommendation from a friend. Great weather conditions today, sleet and freezing rain. Not bad if you want see how it handles on slick roads. Basically, it was awesome. Traction control and VSA worked well and I never lost control (or felt like it would). C-pillar looks like it may be a problem with blindspots, but a lot of cars have that problem. Came away very impressed. The thing really hauls.

The salesman, who my friend also recommended, worked up some numbers on a 42 month lease with 15,000 miles per year allowance after I told him we were looking to stay around payments of $400/mo. He said they could do it at $400/mo with a total out of pocket of $1600, which includes the following; $995 customer cash for cap reduction, $450 bank fee, $155 tax/title/plate fees. 1st month payment is made by Honda (customer loyalty from wifes' Accord lease termination). This sounds like a pretty good deal to me, and I didn't even negotiate yet. The only extra on the CL-S non-NAVI are splashguards. The spoiler at $895 seems pretty high. I'm inclined to go ahead and do it next week. Am I missing something? "

Thanks for your help.

Ken

CarMan@Edmunds · February 2001

SST, actually the residual value for a 2001 Oldsmobile Silhouette leased through GMAC for 36 months with 12,000 miles per year is 51%.

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CarMan@Edmunds · February 2001

Pappas, if you are leasing a 2001 BMW 530i through BMW Financial Services and the money factor that you are being quoted is higher than .00350, it is being marked-up. Of course, only individuals with good credit ratings are eligible for the lowest interest rates. The best thing that you can do to ensure that you are getting a lease quote based on a vehicle's base lease money factor is to comparison shop. Dealerships that know that you are shopping around will be more willing to give you their best offer. Furthermore, getting price quotes at several different dealerships will enable you to make sure that you are being quoted a competitive price for your area on the car that you are interested in.

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CarMan@Edmunds · February 2001

Ks10596, as I am sure you are aware the TL has been selling very well ever since Acura introduced the redesigned version of it. As a result, they haven't had the need to provide any sort of lease money factor support on it yet. So if you decide to lease one through American Honda Finance Corp. prior to the end of the month you will have to use their standard lease money factors. Currently, AHFC's standard money factor is .00325 for 36 month lease terms. The corresponding residual values for a 2001 TL without the navigation system would be 61% for 15,000 miles per year and 63% for 12,000 miles per year.

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CarMan@Edmunds · February 2001

Hi jq3. I would be happy to run a few numbers for you to provide you with a sample lease payment for this car. If you decide to lease a 2001 Mazda Miata with an MSRP of $21,660 and a negotiated price of $19,744 through Mazda American Credit prior to April 2nd for 2 years with 12,000 miles per year, your zero down pre-tax monthly payments would be about $348. If you lease a Miata with a leather interior, your payments would be slightly higher because of lower residual values. I am sorry that I couldn't provide you with a sample payment for a lease with 10,000 miles per year but I have never seen their 10K residuals.

According to my calculations, pre-paying this lease would only save you about $140.40. I personally don't think that is is worth tying up over $8,000 for two years for this little a savings but the option is there for you if you would like.

Unfortunately, used vehicle leasing often turns out to be as expensive or even more expensive than leasing a new vehicle. This is because most manufacturers do not yet provide equivalent lease money factor support on used vehicle leases. The above lease was calculated using a money factor that is equivalent to about 3.8%. I doubt that you will be able to lease a used Miata with an interest rate that is anywhere near that low. Furthermore, by leasing a new model you are able to take advantage of the its full new vehicle warranty.

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CarMan@Edmunds · February 2001

Joe W, I am sorry to say that it is a violation of the Town Hall User Agreement to advertise used vehicles that are for sale in this forum. You can however, advertise your Miata free of charge in the Edmunds.com Used Vehicle MarketPlace. Please feel free to use the following link to go to that section fo this site: Edmunds.com MarketPlace. Thanks.

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CarMan@Edmunds · February 2001

Idontknowitall, I am not aware of any Web site that allows consumers to query banks' current lease money factors and residual values. If you decide to lease a Corvette through GMAC, you will have to use their standard lease rate. This rate will vary depending upon your specific credit rating. The last I have heard, their standard lease rate for consumers with the best credit was 8.99%. It is entirely possible though that they recently lowered their standard rates or will do so in the not so distant future in response to the Frderal Reserve Board's recent actions.

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CarMan@Edmunds · February 2001

Jeepdrvr, individual dealerships do not have the authority to alter your leased vehicle's purchase option price. I suggest that you place a call to Chrysler Finance, or whichever bank your lease is through and see if they would be willing to negotiate your vehicle's lease-end purchase price. I have a feeling that there is a good chance that they will be willing to work with you. Good luck.

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CarMan@Edmunds · February 2001

Hello phatwheels. I would be glad to help you out. The Mercedes-Benz Credit Corp. lease money factor and residual on a 2001 E430 leased for 36 months with 12k miles would be .00399 and 64%. The 48 month money factor would be the same, but the residual value would fall to 58%.

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CarMan@Edmunds · February 2001

Hi Ken. The monthly payment that you were quoted on the 2001 Acura CL Type S sound reasonable to me for the term and mileage that you mentioned. If you like the car, then you may want to consider this deal. I actually am currently leasing a 1999 CL. My lease is up in June and this car is one of the vehicles that I am thinking about getting as a replacement.

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curtnheidi · February 2001

Most banks will not negotiate the lease end price after the inception. Some captive or in-house finance companies will. One should not assume that the residual value-purchase price is negotiable, because it is a contract. It is worth a valiant try, however, and is worth saving money if it works.

Chad -

Call up Mazda Credit, get the Purchase Price and ask if they are willing to take a buy out offer. The damage to your vehicle is not an issue if you buy the truck. Also ask if they have special financing avaliable for people who purchase their lease vehicles.

Curt

winstat · February 2001

I just checked the Blue Book price for my truck as it currently stands now. Trade-In Value with the damage it has is $9,425. The Retail Value (without any damage, fixing it up) is $15,095. My purchase price on the contract is $11,300 so would you agree I'm getting a fair price for buying it at the contract price or do I have leverage to negotiate down the price?? Also, a friend of mine has told me that even if I talk to Mazda Credit, they will just refer me to the dealer to negotiate a price under the $11,300 on the contract. Does this sound familiar to anyone?? One more clarification, the Purchase Price on the contract cannot go up no matter what, correct?? I either buy it for $11,300 or any amount less, NOTHING MORE as far as buying the truck itself then, correct??

Also, I am 100% for an extended warranty. Would that be a point to ask about with Mazda Credit also? I'd like to get at least 3 year/ 36,000 miles more on top the manufacturers 3 year/50,000. What would be best is if I could grab an WE of 6 years/75,000 just to cover the financing period and maybe a year after I've paid the loan off.

Ideas or Thoughts anyone??

Chad

joehumanist · February 2001

I'd appreciate a sanity check on a Saab lease. For a 2001 9-3 with leather and automatic, I was quoted the following on a 3 yr. 12K mi./yr lease:

Capitalize cost: 28,720
Cap cost reduction (dwn payment): 1,895
Residual: 15,225
Total depreciation: 11,598
Rate: 1.00 (is that a money factor of 0.001?)

Total monthly payments, as the dealer calculated were 322 + a 'rent' charge of 42 (the sales guy couldn't explain that one. Any ideas?) + tax for $393.

Total cost out the door is about 4,000:
bank fee of 595
security deposit 400
first month's payment 393
tax, license & doc fees of 665
down payment 1,895

Generally enjoyed my interaction at the dealer, and the car's great. They wouldn't give me a copy of this info, though; I had to manually copy it, which gives me pause on principle.

Any opinions about how good (or not) a deal this is?

Patrick

harrydahood · February 2001

I'm looking at leasing a Toyota Sienna from a third party leasing company. Does anyone have experience with 3rd party leasing..especially internet companies?

Any horror stories or successes?

Thanks,
Harry

rroyce10 · February 2001

....At a $11,300 figure, you are still getting a great deal ( considering now, you wont have to pay for the damage ).....Like I had mentioned before in the previous posts #450..#452...

Your friend is giving you just a little bit of incorrect information...But, It will be up to you...to get a hold of Mazda..and negotiate a better price with a regional or district Mgr from Mazda credit ( when you call.. ask specifically for one of these people and don't spend much time with the people who answer the phone ..that's how you 'will' end up back at the dealer ). And No, the price can not go up...as it stand's now - based on what you have told me, you will pay $11,300 plus any taxes and fees.
Warranty's I highly recommend.....but you can shop those around while looking for a competitive rate.

Good luck.

Terry.

winstat · February 2001

I was informed that my security deposit will be used towards the Purchase Price so my final Purchase Option Price is $10,968 plus taxes and fees. I will admit now, I'm very satisfied with the final amount after checking trade-in values for the truck at KBB...For a Fair Conditioned vehicle $9,690...Good Conditioned vehicle $10,965. I figure to fall somewhere in between those two amounts so I can't argue with the final price I have to finance. Now, I'm debating whether to go 5 years or 4 years on financing since really the 4 year payment won't hurt me and I can budget it fine, the only thing it will affect is getting the damage fixed within 2 or 3 years for possible trade-in for perhaps a new truck later on. Although, owning it outright in 4 years and doubtful I'll go over 75,000 by then leaves me in good shape too. But, I wouldn't mind saving somewhere around 25-30 bucks a month per payment compared to my current lease payment either.

What to do? What to do?

I'll keep you guys updated with the first set of numbers I get from the dealership this weekend. It wont, by any means, be the only financing choice though. I am shopping around, but going to use dealer as starting point and see what numbers they dish out.
Thanks Terry and everyone else for your insight and advice the last couple days it really cleared alot of things up for my first end of lease experience.

Chad

CarMan@Edmunds · February 2001

Patrick, Saab is currently advertising a lease on a 2001 9-3 5-Door with manual transmission, sunroof, heated seats, and CD for $339 per month with $1,299 down over 36 months with 12,000 miles per year. They actually have a whole bunch of advertised leases on their Web site under the "Finance & Leasing" section. I suggest that you check them out by visiting www.saabusa.com. They should provide you with a good reference point for your negotiations.

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spons · February 2001

Car_man,

My brother's girlfriend will be leasing a car soon and has narrowed her choices to the Corolla Sedan and Civic Coupe. Either way, she will be getting a 5-speed.

I see from previous posts to this board that for a 36 month/12k mile per year lease, the Civic has a residual of 61% and a money factor of .00325 through Honda.

What are the coresponding numbers for a Corolla leased through Toyota?

Thnaks.
spons

joehumanist · February 2001

Car_man,
I had actually checked out Saab's site prior to visiting the dealer, but wanted some feedback or some perspective on whether their offers were that good.

I visited a second dealer tonight and the numbers I have from both are equivalent and looks to be derived from thier national deals. A money factor or .00097 or .001 (from both dealers) seems to indicate significant money factor support of the leases by Saab, so I'm curious how much room I have to negotiate.

In addition to cap cost, suggestions on others areas that might be negotiated would be apprecited.

Thanks!
Patrick

papadecamille · February 2001

Car_man,
I'm thinking of buying or leasing an Audi TT Coupe 225 hp.
I read all posts since the beginning of the year and didn't see anything about it. If you've answered this before, I apologize.
Could you please tell me what the residuals and money factor are for 36/39/42-month 12k mi/year leases?
Also, I thought about it and I find it VERY hard to believe that I would drive the 12k mi. Is there any significant residual advantage in going with, say, 9k mi a year?

O.

CarMan@Edmunds · February 2001

Hi spons. Several months ago, Toyota changed the way that they issue their captive finance company's residual values. Rather than issuing charts that contain percentages as most other banks do, Toyota now sends files that contain actual cash residual values for the specific cars and truck that each dealership has in stock. As a result, I can not provide you with an exact residual value for a 2001 Corolla, but I can tell you that this car's Toyota Financial Services residual will likely be close to 59% of its full MSRP for 36 month leases with 15,000 miles per year. As far as this car's lease money factors go, they will vary from region to region. I believe that Toyota currently has something like 12 different regions in the U.S. I have seen money factors as low as .00240 on the 2001 Corolla in certain areas. If there is not any money factor support where you live, then you will have to lease this car using TFS' standard money factor of .00360 for Tier I credit customers.

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CarMan@Edmunds · February 2001

Patrick, Saabs are great cars to lease. You are right, they provide a very large amount of support on their cars. Not only does Saab have extremely low lease money factors, but all of their supported factors can be combined with $2,000 lease cash (except for on Viggen models) that can be used to reduce your car's capitalized cost. I think that Saab actually just adjusted their advertised lease specials to include a little more dealer profit in the vehicles' capitalized costs than they have in recent months. As a result, I certainly feel as though there is probably room to negotiate on their advertised leases.

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CarMan@Edmunds · February 2001

I would be glad to help you out O. Nice choice in cars by the way. I am going to be in the market for a new ride in the not so distant future and the TT is singing its siren's song to me. I think that it is an awesome looking car, but I don't know if I can live with the lack of interior space.

Audi really does not have any support on the TT right now, so if you choose to lease one through Audi Financial Services prior to March 6th, you will have to use a lease money factor of .00305 for all leases up to 4 years in length. To be honest with you, as far as unsupported money factors go, the TT's rates are pretty good. The 2001 TT 225 quattro Coupe's residual values for 36, 39, and 42 month terms with 12,000 miles per year are currently 66%, 65%, and 59% respectively. Your monthly lease payments on this car would be slightly less if you opt for the 10,000 miles per year option. The 10k residuals are 1% higher than the ones that I posted above.

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jq3 · February 2001

for the info on the '01 Mazda Miata lease. I ended up purchasing a used '95 which is in great shape. This probably was the best avenue for me since this will be my wife and I 3rd/fun car.

Thanks again for the info, it stirred me in a direction which I feel was best for me.

JQ3

CarMan@Edmunds · February 2001

I think that you made a wise choice in going with the used Miata, JQ3. Miatas actually make great used cars. They hold up well, and it is usually not that difficult to find a late model one with relatively low mileage. Given the fact that this car is going to be used essentially as a toy, buying a used one still allows you to have a fun little convertible without the expense of a new car. Enjoy!

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papadecamille · February 2001

Car_man,
Thanks for the data on the TT.
Interior space may also be an issue for me.

dleung1 · February 2001

How are sales tax collected on leased vehicles in
New Jersey these days ?

Is it added to the base payment or rolled into
the gross cap. cost.

Thanks !!

tfi1 · February 2001

What is an approximate residual value on an Infiniti QX4 4WD on a 2 year and a 3 year lease.

CarMan@Edmunds · February 2001

You're welcome, papadecamille. I am always glad to help.

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CarMan@Edmunds · February 2001

Hi dleung1. I believe that sales tax on leased vehicles is added to the monthly payment in New Jersey. It would be a major violation for a dealership to intentionally miscalculate the tax on the vehicle that you are going to lease from them, so I really don't think that you need to worry. The F & I person that you deal with should be able to answer any questions that you have on this topic.

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CarMan@Edmunds · February 2001

Hello Tfi. If you were to lease a 2001 Infiniti QX4 4WD through Infiniti Financial Services for 2 years the 15,000 miles per year residual value would currently be 64%. The 3 year 15k IFS residual value would be 57%. Keep in mind that Infiniti's and Nissan's lease programs typically run for only a month at a time. This program is only scheduled to run through February 28th. Their March program may be lightly different.

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infinitimn · February 2001

To dleung1:
Sales tax is charged at 6% only on the depreciation, that is the actual capitalized cost (not the list price) minus the residual. It can be included in the lease payment or paid up front. It is not charged on the full lease payment.

Plastic19 · February 2001

Can it be done? What kind of money factor can I expect to see on a used vehicle? Does it make sense to lease a used car? What are the pifalls I should look out for? Thanks in advance for your help.

CarMan@Edmunds · February 2001

Thanks for the additional information, Infinitimn. That certainly explains just about everything one would want to know about sales tax on new vehicles in NJ.

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CarMan@Edmunds · February 2001

Plastic19, yes used vehicles can be leased. The main problem with leasing used vehicles is that most manufacturers do not provide any support on used vehicle leases. Fortunately, this is not the case with BMW. BMW Financial Services has a lease program that is associated with BMW's Certified PreOwned Program. BMW frequently provides support on used vehicle leases and I have specifically seen support on Certified PreOwned 5-Series models in the past. As a result, by leasing a used vehicle through this program one can often be a pretty good deal. I am sorry to say that I do not know the exact level of support that they have available on this car at this time. However, you should be able to get a good idea of what you can expect to pay to lease a used 5-Series by comparison shopping at several local dealers.

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dleung1 · February 2001

Thanks for replies !

Is it correct for the tax to be added in the
"gross capitalized cost" number ?

Thanks again !

flaca · February 2001

Hi -
What is the current cost factor and residual% value for the month of March. I looking to lease a 2001 Jetta GLS 4 cylinder auto for 48 months.
My current lease is a 97 Camry who just started smoking (I think it needs new valve stem seals). I am worried that I am going to get clobbered for this. I have $495.00 disposition fee. SHould I inform them about this problem? Help me please.
Thanks.

CarMan@Edmunds · February 2001

Hi flaca. Volkswagen Credit's current lease program is only scheduled to run through March 6th. Are you planning on leasing a new Jetta prior to then? If so I would be happy to let you know what their current program is like. If not, then please check back with me in another week or two. By then I should have the details of their March lease program, which could be significantly diferent than the one tht they are running now.

As far as your Camry goes, you are going to have to have it inspected prior to turning it in at lease-end. Wait and see what happens at this inspection before notifying the bank that you are leasing through about any problems that you are only speculating about. They may pass your car with a clean bill of health.

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ace10 · February 2001

you're probably not going to want to hear this, but hear it goes. FOUR YEAR LEASES ARE A BAD IDEA, unless the manufacturer's bumper to bmper warranty covers the entire period! you are about to learn this with the four year lease on your camry, which has the standard 3yr warranty. VW has an even shorter comprehensive warranty, 24months, i believe. VW should be embarrased about this. yea, they cover their engine/tranny for 10 years, but those types of covered waranty claims have to be pretty infrequent when compared to broken window motors, blown speakers, a/c compressors. etc.. these are things that go wrong with VW's, and pretty much any other car.

if you were still covered by the toyota warranty, you most likely wouldn't be stuck with a repair bill on a car you won't be owning shortly.

ace

flaca · February 2001

hi-
Give me the current facts. If I don't get the car before the 6th - I'll rewrite. I am concerned about the fact the the VW only has 24 month warranty. It is one factor that is holding me back. Do they they really break down that often? I have never had a VW. Kind of scared. Thanks.

getout2 · February 2001

I have just exceeded my mileage allotment on 98 Acura TL. I would like out get out of the remaining 6 months on the lease and into a new Audi ASAP. Is my only option to pre-pay the $2274 (379/mo x 6) remaining or is this negotiable with American Honda Finance.

Thanks in advance - great list!

rroyce10 · February 2001

....Well for starters, not much is negotiable right now.."but"...If you know your residual..Maybe you can sell the vehicle on your own now...If you give me all the info (miles, color, options, condition, etc on the vehicle . I can tell you roughly what you might expect ....

Terry.

mistercynic · March 2001

Hello, Car_man.

My lease contract lists a Rent Charge. What is this?
$4229.81 on a $20,000 auto w/ 39 month term. Does this sound right?

Thanks,
ja

CarMan@Edmunds · March 2001

Ja. Every monthly lease payment is comprised of two main components, the depreciation portion and the interest portion. The "rent charge" is essentially the total amount of interest that you are going to pay on the vehicle that you are leasing. You can divide this number by the length of your lease (the term) to find out how much interest you are paying on this vehicle each month.

If you provide me with some specific information about your lease, I would be glad to let you know what I think of the deal that you got. Specifically, post this vehicle's full MSRP, the price that you were charged for it (if available), a detailed description of the trim level, how long you are leasing it for, and how many miles per year you are allowed to drive without penalty.

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dleung1 · March 2001

Try this:

4,229.81 divided by 39 equals $ $ 108.46

Then 108.46 divided by sum of ( residual and
adjusted cap. cost)= money rate

Then multiply money rate by 2400

The final answer is your interest rate !

Current market rate is 8.00% for people with good
credit. This rate is what most leasing companies
charge. There are below market rates offered by
auto manufacturers in some cases ( to move cars)..

flaca · March 2001

Is there a web site where I can get the actual cost factors and residual values on car leases?

expedition2 · March 2001

I did your calculation above assuming I did it right, the part that throws me off is adding the residual plus the cap cost, very high number.
Anyway, it must be right because I came up with a percentage of 6.7. I have excellent credit but doesn't that sound a bit low?

vkj · March 2001

melissannh · March 2001

I went severely over my lease miles and wound up with a 2,593.80 bill. I was told by the dealership I did not have to pay this when I turned in my lease (which I didnt) but that I would get billed and I could work out a payment plan.

As soon as I received the bill I called Ford and was told all bills are due IMMEDIATELY and they do NOT have payment plans and I needed to pay 'now". I explained how I was told by the dealership that I could stretch this out for as long as it took (which is not fun but my only financial option). She did say though that as an incentive - Ford offered a Quick Pay and I could pay all at once - for 2,000 - if I paid immediately. (I could commit a check number and have 20 days to get it to them).

This seems like a great deal - if I can come up with the money. And I can come up with the $ - but my question is - if they were so willing to come down $600 in the course of a 3 minute phone call - is there more bargaining room?

I dont want to sound ungrateful - but I also was very unhappy with Ford all along for not offering mile bands available directly from them that I could build into my lease payment as soon as I relaized I would go over - apparently when I went back to read the fine print - I had said 12,00 a year when I signed the lease and I couldnt up it or buy bands either, unless the dealership allowed that and mine didnt, so there was some discord along the way.

Shoudl I jump at the 600 savings or shoudl I continue to negotiate - how much play is there - I could easily do 1500 do I bargain them out until we reach 1850 and then pay that???!!!!! I have a day to decide - please let me if anyoen has any expereince with this!

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