Does this negotiation seem backwards?

kerswell · 06-25-2005, 04:51 PM

I want to lease an '05 KC. Unfortunately, I want copper and NOBODY out here has a KC in copper in an LE or equipped SE. So the dealer shows me a Red brawn LE - captains chairs. I say 3 years nothing down, 320 - 330 a month and I'm yours IF it was Copper - I'll wait 'till you get one in. So they come back and say they can get a copper LE (bench) in 2 days. With only 45 mins of bargaining, they go up to full wholesale blue book on my trade ($2500 in equity!) but only drop the purchase price $1000 off sticker. That seems odd to me, though I know you can't bargain price as well with a lease )no rebate). Anyhow, 365 was their "final" offer, so I jammed home. They've already left one message, but I will wait to call back. I'm adamant about my budget of under $350. Thoughts?

tnbowhunter · 06-25-2005, 05:01 PM

I say stick to your guns and your budget. Let them know what "your" bottom line is and don't budge. If they want to sell bad enough they will call ya back.
Good luck.

*wmtom* · 06-25-2005, 05:38 PM

i agree, let them come to you

kerswell · 06-25-2005, 08:53 PM

Great advice!! The first call they went down to 345 a month. If I finance the $800 acquisition fee, it will go up about $10, so I'm thinking of countering with $345 including the acquisition fee, which would be like 315 for the car itself (i.e., minus tax).

**Kronos1965** · 06-25-2005, 11:10 PM

Agree on a final price, not a monthly payment!

It's a neat trick to tell you that the montly goes down and what they don't tell you is the financing charge, rebates are taken back, taxes/other fees seem to increase...

Bowhunter is right. If they want to sell it to you (and think you're interested), they will go down in price.

kerswell · 06-26-2005, 09:08 AM

Quote:

Originally Posted by Kronos1965

Agree on a final price, not a monthly payment!

It's a neat trick to tell you that the montly goes down and what they don't tell you is the financing charge, rebates are taken back, taxes/other fees seem to increase...

Bowhunter is right. If they want to sell it to you (and think you're interested), they will go down in price.

Good advice with a purchase, but leasing is different. There are no rebates and with $0 down, they can't really do much to backload it. I'm renting, so I don't care about anything other than the monthly payment (they can't raise the finance charge without the payment going up) and the residual (which the dealer can't set). Increasing the term of the lease (in this case) RAISES the payment, so they can't do that either.

Anyhow, got it for $343 a month including financing the acquisition fee and tax. That should work out to about a few hundred over invoice. I'm satisfied!

**Kronos1965** · 06-26-2005, 04:33 PM

Congratulations on the truck. Sounds like all the details fell in place for you.

How long did you plan on leasing it for?

**Helinut1970** · 06-26-2005, 04:41 PM

First mistake is bargaining on the monthly price. Second, is a lease unless your not going to use the truck for what it is intended for. Buy the truck outright and get into something you can afford. Instead of a LE get the SE or an equipped XE. Good luck

kerswell · 06-27-2005, 09:42 AM

Quote:

Originally Posted by Kronos1965

Congratulations on the truck. Sounds like all the details fell in place for you.

How long did you plan on leasing it for?

Thanks. 42 months.

kerswell · 06-27-2005, 09:47 AM

Quote:

Originally Posted by Helinut1970

First mistake is bargaining on the monthly price. Second, is a lease unless your not going to use the truck for what it is intended for. Buy the truck outright and get into something you can afford. Instead of a LE get the SE or an equipped XE. Good luck

I don't understand why bargaining on the monthly rent is disadvantageous. What do I care whether they give me more for the trade or lower the Titan price or both or lower the interest rate and/or eat bank fees? The monthly payment and the residual is all that matters (with 0$ down), right?

The difference in monthly payments versus a sale is huge. I couldn't buy a base XE for $343 a month!! Excess wear and tear isn't an issue 'cause I would never just turn it back in at the end unless the resale value really stunk!

I tried to get a SE but NOBODY had what I wanted in terms of options and color.

tweety · 06-27-2005, 11:06 AM

I'm not a fan of their tactics regarding, "where do you want your payments to be", crap.
Tell you what, you tell me what the price will be and I will worry about if the payments fit my game plan or not.
We hammed a dealer once by making a great deal. They were thinking that we were going to finance with them when at the last moment in finance, we whipped out a bank check that we got elsewhere. The finance guy was beside himself trying to add on what he could with undercoating or tinting. We said, no-just the machine for today.
Kind of the only way around them backdoor-ing you.

kerswell · 06-27-2005, 02:13 PM

Quote:

Originally Posted by tweety

I'm not a fan of their tactics regarding, "where do you want your payments to be", crap.
Tell you what, you tell me what the price will be and I will worry about if the payments fit my game plan or not.
We hammed a dealer once by making a great deal. They were thinking that we were going to finance with them when at the last moment in finance, we whipped out a bank check that we got elsewhere. The finance guy was beside himself trying to add on what he could with undercoating or tinting. We said, no-just the machine for today.
Kind of the only way around them backdoor-ing you.

I agree with your dislike for that style they use. But I still feel it is a different situation with a lease (where adding more payments beyond 36 -42 months usually RAISES the monthly amount). Actually, they didn't do that with me - they were telling me how much I was getting on the trade, etc. I switched to "the monthly payment needs to be <345" because I didn't care whether they dropped on the Titan or came up on the Ford or cut some fees. They never offered me any add-ons to try to compensate either.