[quote name='Ash Burton']FALSE. Look, first thing I noticed working for Audi is that not a single manager or even the owner of the dealership "owned" a car. They all leased. Before you start flaming me settle down and learn something. Have you ever worked finance? Leasing is not for the cars full value you clown, wow you are hilarious. It is based off the predicted depreciation subtracted from the current price. Also, you are covered under warranty the entire lease on most cars so there will be no repair bills. Leasing works great for me because I get a new car every three years and never worry about repairs or being upside down.
The point of negotiated price first then interest and payment was made because most dealerships will negotiate on payment with you, as to disguise the true cost of the car. If you had any common sense other than what you read on some cars.com forum you could have figured that out. They add a point or two to the interest to make a profit, and they will drop it off to negotiate price point, so there is actually room to negotiate. Anyways, if you don't like my advice, ignore it. Don't be a pretentious ass-hat, nobody likes that.[/QUOTE]
FALSE. I never said you lease for the full value, but the bank that supplies the loan assumes your overall loan is for the car's full value. The bank won't let a car go off the lot if it's not considered paid for in one way or another. You don't drive a car off the lot simply because you're expected to pay for the depreciation. Hence, when I leased a car I had on my credit report for $31,295 instead of the $16,598 that was for depreciation. And when I got rid of the car I had on my credit report that I paid off a car valued at $31, 295 and not the $16, 598 depreciation value. Most car dealers/salesmen lease a car because it gives off the image of success. If you have a new car every year or two it portrays that you're wealthy and successful and will boost sales.
If you want to lease a car, then do it. You'll pay a decent amount up front, usually, and then are paying to rent the car. After your lease is up, you send it back and have no trade-in value or anything to show for it. If you want to own a car for a while, don't lease. Also, in regards to APR you don't have control over it. Don't you pay attention to the commercials that advertise a certain % yet say "OAC" (on approved credit)? Which means if you're credit isn't approved you don't get the advertised rate. Therefore, you don't have much control over your interest rate. Like I said, credit counts in this aspect and if a dealer claims they can knock a point off, then they were ripping you off to being with. I got my % dropped .5% simply by having automatic deduction and another 2.9% by re-financing through a credit union after 6 months. I had no control over the rate - that's up to my credit report and history.
Have I worked in finance? Nope. But I've worked at car dealership for almost a decade in areas from lot attendants to salesman and I've also bought or leased over 12 cars - so I've learned a thing or two.
Also, it's not "anyways." There is no "s" at the end of that word. I'm not going to take advice from someone who makes such a common mistake. There, now you can call me a pretentious asshat but I do know a great deal about how the car industry works.
