www.CostaRicaTicas.com

Knowing "their" lingo gets you far and enables one to compare apples to apples. Lease time may be here, but go in with a knowledge set:

http://www.bottomlinepublications.com/c ... ng-is-back

Auto Leasing Is Back

Secrets to Getting the Best Deal

Leasing a car instead of buying suddenly is hot. Around 25% of the new cars being driven off dealer lots now are leased, not purchased—up from just 11% in 2009—because attractive lease terms once again are available.

Unfortunately, many lessees aren't getting those attractive deals. The car-leasing process has some complex aspects and unfamiliar terminology, and some dealerships take unfair advantage of the resulting consumer confusion.

Warning: Advertised lease specials often are not as appealing as they seem. Manufacturers sometimes keep the monthly lease payments in these offers low by allowing just 10,000 miles per year, rather than the usual 12,000, or by requiring steep down payments. Example: Audi's advertised lease specials often ask for $4,000 down, much more than lessees normally pay.

To get a good lease deal…

• Select a vehicle with a high residual value. The size of your lease payments will be based in part on how close the vehicle's "residual value" (the amount the vehicle is worth when you turn it in at lease end) is to its "capitalized cost" (the initial sales price).

Examples: Toyota, Honda, BMW and Mercedes-Benz vehicles generally hold their value quite well. Most American-brand vehicles tend not to hold their value as well. Those that do are the Jeep Wrangler and Ford Focus.

• E-mail or call the Internet department of three to five dealerships in your area that sell the vehicle you want. Explain that you are "shopping for a lease payment" on this vehicle. This phrasing lets dealerships know that you are contacting their competitors, too, improving the odds that they will give you a competitive price. (Don't let those advertised lease deals convince you that lease terms are not negotiable—they are.) Ask them to e-mail a quote to you. Say that you won't visit the dealership until you have agreed to terms. Arriving on a dealer lot without a deal in hand greatly reduces your leverage.

Exception: It's OK to visit a dealer lot to test-drive a vehicle, but don't let the salesperson talk you into his/her office.

When you request quotes, specify lease length, mileage allowance, money- down preferences and the options packages that you want. Also ask whether taxes will be included in the quote—they usually are not. Helpful: Not sure what details to tell the dealership to include in the quote? Three years, 12,000 miles per year and around $1,000 down usually are the best lease options. Lease for longer than three years, and by the end, you might not be driving a car that seems new and is trouble-free. Most car owners drive around 12,000 miles a year—though it is fine to specify 10,000 miles per year if you're sure you won't drive more than this.

• Ask the dealerships that quote you the lowest monthly payments to e-mail you a "work sheet." This work sheet puts the details of the lease offer on paper. Some dealerships might be hesitant to e-mail a work sheet, but almost all will do so when pressed.

• Compare the "capitalized cost" charged in the lease offer to the vehicle's market value. To do this…

Locate the True Market Value and Dealer Invoice Price of the vehicle on the Edmunds Web site. (On Edmunds.com, at the very top of the page, select the make, model, options and year of the car, then scan down the page.) Note that the True Market Value might be below the invoice price if, for example, there is a manufacturer's rebate on the car.

If the capitalized cost listed on the lease-offer work sheet is higher than this True Market Value, subtract the Dealer Invoice Price from this capitalized cost.

E-mail or call the dealership and say, "I see this lease is based on a capitalized cost of $X above (or below, if that is the case) invoice. My research suggests that this car currently is selling at $Y above (or below) invoice (subtract the Dealer Invoice from the True Market Value to find this second figure—in many cases, these numbers will be quite close). I'm looking for a dealership that will lease to me at that figure." Try this first with the dealership that offered the lowest monthly payments, but try the others, too, if the first won't give you a capitalized cost very close to True Market Value.

• Check the "money factor" listed on the work sheet. This sometimes is called "lease factor," "lease rate" or just "factor." It is the lease equivalent of the interest rate on a car loan—but it is presented in a confusing way that makes it difficult for lessees to tell if they're getting a good rate.

To convert a money factor to an interest rate, multiply by 2,400. Example: A 0.00125 money factor converts to 3% (0.00125 x 2,400 = 3%). If the resulting figure is higher than the going rate on a car loan, you might be paying too much. This usually isn't something that the dealership can negotiate—money factor is set by the bank or leasing company. Still, a high money factor could suggest that the bank or leasing company considers you a risky borrower. If that doesn't seem right and you're not in a rush to get a new car, obtain copies of your credit reports (available at AnnualCreditReport.com) and scan for errors that could be lowering your score before leasing.

• If you are trading in a car and there is a location of the national used-car chain CarMax near you, take your car there for a quote. If the dealership you're leasing from won't match CarMax's quote on the trade-in, go ahead and sell the car to CarMax. Or sell directly to another buyer through Craigslist if you're willing to take the time to do so. You then can use the money as a down payment.

Source: Phil Reed, senior consumer advice editor at Edmunds.com, an automotive information Web site. He is author of Strategies for Smart Car Buyers (Edmunds).

_________________
"Actual happiness always looks pretty squalid in comparison with the over-compensations for misery. And, of course, stability isn't nearly so spectacular as instability. And being contented has none of the glamour of a good fight against misfortune, none of the picturesqueness of a struggle with temptation, or a fatal overthrow by passion or doubt. Happiness is never grand."
- Aldous Huxley, Brave New World, Ch. 16

Outstanding report by Bro Steven1. Mentioned in the article is a free annual report site https://www.annualcreditreport.com/index.action << the only one that's totally free and doesn't involve signing up for some program. You are entitled by law to get 1 credit report per year from each of the 3 major agencies. Don't request all 3 at the same time; instead get a report from each one individually every 4 months--that way you get an updated report 3 times a year (I've found the scores from each agency are roughly the same at any one time). If you see info about you that doesn't seem right, dispute resolution to challenge bad data is available, also for free.

_________________
"A man accustomed to hear only the echo of his own sentiments, soon bars all the common avenues of delight, and has no part in the general gratification of mankind"--Dr. Johnson
"Amen, brother"-ED

You'll regret not being empowered with the strategies and the language knowledge base being supplied in this thread if indeed you do elect to lease a vehicle. Yes indeed you will.

_________________
"Actual happiness always looks pretty squalid in comparison with the over-compensations for misery. And, of course, stability isn't nearly so spectacular as instability. And being contented has none of the glamour of a good fight against misfortune, none of the picturesqueness of a struggle with temptation, or a fatal overthrow by passion or doubt. Happiness is never grand."
- Aldous Huxley, Brave New World, Ch. 16

Great post - lots of good info.

While many lease, I'm certain they don't fully understand it <the fault of the dealer and the leasing industry - its not in their economic best interest to do so>

However......know this - the most expensive way to "buy" a car is through leasing - the least - pay cash and keep it for a while.

I know in addition to death and taxes, car payments are another certainty for many.

Steven, while you did a great job, it can't be overstated that the "Cap Cost" is nothing more than the selling price and is always <almost always> negociable, as are the fees (you will almost always see a bank and/or dealer fee in a lease - and these can be substancial)

Frequently - a mfg own leasing arm - Fords Red Carpet Leasing, for example - often will not have these fees - which are nothing but rip offs as you get nothing for them. And trust me - almost everything in a car transaction is negociable - and certainly worth asking about.

(You.....to the salesman: "I see here that there is a bank/lender fee of $600 and a dealer acquisition fee of $350 - other than putting even more profit in the lenders hands, and paying the dealership for the privdledge of selling me the car - can you tell me what I receive in benefits for paying them?" Even if they don waive it, they may reduce it by a lot - if nothing else, you establish yourself as a smart savvy consumer - you don't have to disclose that you are a CRT member!!!! Never do that, or the fees and charges will be even higher!

You also avoid them laughing their balls off over how stupid you are when you leave the dealership by asking these type of questions - as long as you have not disclosed your membership in CRT )

Not every decision has to be made on its economic merits; I worked with many that wanted to drive a new, fancier car every 3 years, and always counted on having a car payment - if they can afford it, why not?

Leasing is standard operation if you are leasing under a business entity for business purposes.

I always knew S1 was really a used car salesman!

....we never called it "used car". Panama Red; Oaxacan; Michoacán; Thai sticks; et. all.....but never "used car".....that'd be too tricky dicky......

_________________
"Actual happiness always looks pretty squalid in comparison with the over-compensations for misery. And, of course, stability isn't nearly so spectacular as instability. And being contented has none of the glamour of a good fight against misfortune, none of the picturesqueness of a struggle with temptation, or a fatal overthrow by passion or doubt. Happiness is never grand."
- Aldous Huxley, Brave New World, Ch. 16

Don't lease a used car!

Nah - just some good tips on how not to get <totally> screwed!

I will - at least on this site - admit to being a CRT member

...and don't (much) use a leased car.

_________________
"A man accustomed to hear only the echo of his own sentiments, soon bars all the common avenues of delight, and has no part in the general gratification of mankind"--Dr. Johnson
"Amen, brother"-ED