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Cars - Leasing vs. buying used for cash?

Cars - Leasing vs. buying used for cash?

Old Mar 28th 2019, 3:56 pm
  #46  
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Default Re: Cars - Leasing vs. buying used for cash?

Originally Posted by Pulaski View Post
The way MSRPs typically work is that a dealer will sell most cars for around 10%-15% less than the MSRP, although this is less true for new or especially desirable models, but if you go the manufacturers web site and "build" a car that comes up with a $40,000 MSRP then typically a dealer would have it listed on his dealer forecourt for around $35,000 …. then of course there would be some fees and taxes on top.

If you have a particular model and spec in mind, and are ordering a car 4-8 weeks ahead, then you should be able to push IAS to customer order a vehicle from the manufacturer - "No, we want that model and spec!" We did exactly that because we had a particular spec and colour in mind, and when IAS said "These are the models and colours we have available, you'd have wait for a silver Mustang GT with alloy wheels and manual transmission." we said "OK!" They told us it would take six weeks, but it was only about four weeks later when our Mustang came direct from the plant at Michigan. …. We still have that Mustang 17 years later!

A few years later we used a similar trick when we bought our truck - the dealers only stocked 4wd models with automatic transmission and the larger 6-7litre engines, which we didn't need and didn't want. After the dealer found that there were no models of the spec we wanted at any dealer in the state or six adjoining states he agreed to custom-order the truck we wanted - and I believe that it is close to unique - leather and AC, but the 5.4l V8 engine, 2wd, and "a stick". What we got was what looked like (at that time) "a $45,000 truck" but only paid around $32,000 for it - my wife's family were very impressed!

I'm sure you'll be fine, so long as you remember you can't afford everything that the American dream promises!
In my experience, and this is limited to 3 cars in the US, the sticker price is the MSRP plus all options on the car, but as you note once you negotiate they finnaly bring it down to about the range you said. If you get the TrueCar or Edmunds app they will show your data on prices paid. DO NOT put your cell or email in, you will get never ending calls and emails....

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Old Mar 28th 2019, 4:01 pm
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Default Re: Cars - Leasing vs. buying used for cash?

Originally Posted by tht View Post
In my experience, and this is limited to 3 cars in the US, the sticker price is the MSRP plus all options on the car, ….
Round here dealers list all the options on the paper posted in the window of cars on their lot, and the sticker price, what they (hope to) sell for ….. and that is much less than the MSRP on the manufacturer's web site for the same spec. That is true for Fords and Hondas, I presume others are similar.

We bought a Honda coupe in 2017 that with options had an MSRP of over $26,000, but we walked out paying $21,400, all-in, fees, taxes, and everything included, so a true discount of around 25%. That was under slightly unusual circumstances - it is an "undesirable" manual that the dealer was struggling to shift, which is exactly what we were looking for.

Last edited by Pulaski; Mar 28th 2019 at 4:09 pm.
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Old Mar 28th 2019, 4:05 pm
  #48  
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Default Re: Cars - Leasing vs. buying used for cash?

Originally Posted by Pulaski View Post
Correct. But it provides some context for why there have been discussions on BE about what sort of salary is required to make a posting in the NE/NYC area tolerable, and a few months ago, following some back and forth here on BE, someone decided to turn down an NJ/NYC post paying $200k as he realized that the numbers just didn't stack up. And I would agree with that decision, the cost of living in the NE is just madness, compounded by some off-the-chart property taxes.
Agreed on this, but I can only talk from personal experience in 2010. Add to that the tax changes on deductions if a NY Metro or CA role .... for a single or a couple where the partner would get work authorization and have marketable skills I would say it’s worth considering, as it would give them a chance to build credit and increase Comp before starting a family. But moving a family for $200k on employment at will and signing an expensive lease is just to big a risk unless the company will underwrite that and repatriation costs. For a family I would say that’s way to low to get a decent standard of living in the City or the burbs when you actually add up the costs, that said many locals survive on a lot less so it has to be doable.... but I’m not sure it would be the American dream...

Last edited by tht; Mar 28th 2019 at 4:08 pm.
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Old Mar 28th 2019, 6:49 pm
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Default Re: Cars - Leasing vs. buying used for cash?

Honda is a little different in that it's easier to compare like-for-like when shopping around. The model and trim level is the same for all cars of said trim level, so the dealers are all quoting for the same thing. There's none of this 'but does the other care have a sunroof?' crap!

The only differences are dealer-installed like floor mats or cargo mat, etc. Of course, one should NEVER pay extra for window etching, fabric treatments or any other add-ons that are just there for pure dealer profit.
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