Scenario 1: MSRP $34,050 (Sunroof Package, Automatic, CD Changer, Metallic Paint) - $2000.00 discount = $32,050.
To finance this vehicle, the dealer offered 5.25 % interest for 60 months. If I chose to lease this vehicle, the monthly lease amount was $510.00 @ .320 money factor for 39 months, with nothing down as a down payment.
Scenario 2: MSRP $33,496 (Same package as before), but no discount except for $54.00. WOW!
To finance this vehicle, the dealer offered 5.25 % interest for 60 months. If I chose to lease this vehicle, the monthly lease amount was $464.62 (drive out price) @ .16 money factor for 39 months, with $2500.00 as a down payment.
Here's what I don't understand and I need some clarification ...
- Mercedes Benz, according to Edmunds.com is offering 1.65 % interest for 60 months for qualified buyers (we are qualified). Why weren't we offered this rate? I even asked the salesperson if the 5.25 % interest rate was the best they could do as my credit union was offering 3.4 % interest for 60 months and he told me to take the offer from my credit union. Why weren't they forthcoming about the 1.65 % interest rate? It started in the month of April and today is April 10th. If the salesperson was not informed of this offer, certainly the finance person should have been, which our salesperson visited several times while we were in his office.
- I negiotiated the price of the vehicle first, before I even mentioned financing or leasing. In scenario 1, the price of the vehicle was 00.00 below MSRP. I then mentioned leasing and he said the dealership would NOT give me the .16 money factor if I leased the vehicle. He said I could ONLY get the .16 money factor for leasing if I paid almost full MSRP, reducing the vehicle price by only .00. Essentially, the deal I had worked out (the 00.00 off MSRP was being wiped away because I wanted to lease). I told the sales person whether I lease or buy doesn't make a bit of difference. I am negiotiang the price of the vehicle first and whatever I do from there, albeit finance or lease, would then be reduced by whatever I have negiotiated off the MSRP. I shouldn't lose the 00.00 discount because I decided to lease.
The point I am trying to make is this: the money factor should be the same regardless of what I am trying to do. I negotiated the price of the vehicle first, and whatever I do afterwards is secondary. Am I completely wrong here? I've never leased before, but I have read up as much as I possibly can and I haven't ran across the scenario.
If someone has some experience in dealing with these types of situations, please advise me on what to do next.
Lastly, before I left, we did get an estimate on my wife's car that we MIGHT trade in. They rated in the car in excellent condition (which it is) and offered $13,150 (Kelly Blue Book). We managed to get them to go to $13,500, but not any higher. Selling it private party can get around $15,700, but we've had it listed for a while and it hasn't sold. I know they will turn around and sell it for $2000.00 more than what they gave us, but in this case, do you think it is worth it for us to continue to try to sell it privately or trade it in and get the tax break, providing we can work out the other scenarios mentioned above?
I appreciate many responses. My wife is on my back!
Thanks.
P.S.
Forgot to mention this ...
the dealer wants to also charge $225.00 for client services (loaner car for maintenance is mostly what I was told this is for) + $50.00 for documentary/notary fee.
I was not too pleased with the client fee, since it is a self-imposed fee from the dealer (more profit). I didn't negotiate this today, because I was very displeased with the money factor variations because I was receiving a $2000.00 discount off MSRP.
Any suggestions?
DF