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Wow -- that was really bad... It was all common sense stuff. Nothing new! :(
I have been in the retail automobile business since 1985, people often think they drive too many miles to lease. My wife drives 27,000 miles a year and we lease her car! Why? Because she would never have any equity until the car is almost paid off, she is out of warranty late in the second year, gets a new car every other year, AND, has a lower monthly payment. If I didn't think leasing was her best option do you really think I would have my WIFE lease her car?
On another note, why would you pay someone do get you a deal on a car? Isn't saving money the whole point of this article?
Bad article on several points!!!
You're kidding, right? Leases are for a very limited audience but to say "if you don't have an accountant you shouldn't lease" is absurd. You will never have "equity" in a financed car unless you finance for three years or actually pay the car off - most people don't. If you like driving newer cars every few years and don't drive a lot then a lease might be feasible.
Then in slide 12 you speak about advertising costs akin to being junk fees. That depends on where you're looking at the advertising costs. They are rolled into the MSRP but are a separate line item on invoices and vary by region - the "invoice" in a metro area can be far higher than in rural areas because of these fees. In DC Metro, the fees are about $400 per car, in West Virginia they are about $150. While "everything" is negotiable, advertising fees are legitimate charges that the dealers pay.
Slide 14 flat out states that you only pay tax an the difference between the trade value and the negotiated cost of the new car. That actually only holds true in a minority of states.
Please get your facts straight before you post this stuff as "fact."
almost every person in retail business earns a living from making profit. let's make sure these car dealers don't make too much money on a car....so they have trouble covering expenses for payroll, not to mention the donations that most dealers give to schools, churches, local charities, 4h, etc...
there is nothing wrong with making a profit on a car.....and as a dealer, we do discount vehicles, but not to the point of no return....this shopping trend is great for the consumer and dealer, but when it gets to the point of dealers racing to the bottom price to sell a car, profit is gone.
i wish all auto companies would be more like porsche....the dealer cannot do this race to the bottom...the customer pays the msrp if they would like to own it. if the dealer does discount vehicles, they run the risk of losing the franchise.
or you can buy a car at carmax or other "one-price" dealer and you don't haggle at all...if you don't like the price, you don't buy the car.
i wish i was able to haggle with my customers who own their businesses in order to get a better deal on a shirt, gallon of milk, or anything else for that matter. just joking....i feel that everyone should get paid for their hard work and efforts.
but most people don't bat an eye when they have to pay crazy amounts of money for prescriptions, health care, attorney fees, realtors, etc...try negotiating with them!