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Is this a good lease term?

Discussion in 'Dealers & Pricing' started by BulletHead, Apr 11, 2010.

  1. BulletHead

    BulletHead New Member

    Joined:
    Apr 11, 2010
    1
    0
    0
    Location:
    Boston
    Model:
    III
    I went in for the Prius II (1223) national advertised deal for $1999 down and 189/month at a Boston dealer. After negotiating for about 10 minutes, the delaer came back with the following deal.

    Prius III (1225) model, only addition it has compared to the II (1223) model is the JBL stereo and Bluetooth.
    $191/month
    $1300 down
    NYS taxes up front (~8% = $550)
    I forgot to get the residual.

    They are still charging me the $289 doc fees and $100 runner fee to the DMV, I am out of state and need to get NYS plates.

    Does the $1300 fee include the $650 acq fee and cap cost reduction (CCR)? Does it look like a good deal? I see tax charges on the CCR and acq, is that legit?
     
    #1 BulletHead, Apr 11, 2010
  2. Jim05

    Jim05 Occasional Quasi-Hypermiler

    Joined:
    Aug 22, 2009
    115
    20
    0
    Location:
    Culpeper
    Vehicle:
    2010 Prius
    Model:
    IV
    Bottom line in any contract negotiation is ask everything upfront, assume nothing (Acq fee & CCR). If you're planning to lease and turn-in, the residual is a moot point. Otherwise, if you think you might buy it at end of lease, the residual is still negotiable at the end of lease based on KBB/market value. Personally, if I were to lease a car I would plan on turning it in for the latest model.

    Adding all the numbers (doc and runner), I don't think you're necessarily getting a better deal except the upgrade from II to III for only $2/month. I would negotiate out the doc and runner fees. In VA, everyone wants $350-$399 and I always threaten to go to a nearby MD dealer -- they invariably cave in as I walk out the door. Taxes on the other fees is dependent on the state.

    To determine if it's a good deal or not, you have to add up all the numbers and compare it to a purchase (with interest). If your total at lease turn-in is higher than your payment total, it's a good deal only if you expect the value at end of lease term to be lower than the residual -- or, if you're very unsure about whether you'll want the car 2-3 years from now.
    hope this helps

     
    #2 Jim05, Apr 11, 2010
    1 person likes this.
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