2016 Corolla: Lease, finance or cash purchase?

If your interested in leasing...don't let this ^ guy scare you away.

First you will want to run your credit, finding out what your score is. If You have an excellent credit catagory, most likely you will fall into their Tier 3 category. This is where you want to be.

Next, do not be brand loyal. Do your research of what car you could afford (economy etc.) then gather a list of cars that qualify in the class you want/need.

Next go to the IIHSS website to see the safety rating of all the cars you chose. Write it down, study it.

After that, call around to the dealerships in your area, and get the names of the reps and ask for leasing deals. They will play with your mind, telling you to come in - a ploy to get you test driving, and hustle you. All means necessary, refuse, ask for all information over the phone.

Over the phone, tell them the car you want. Ask what is included in the "Inception Fees"

Inception Fees will include*:
Aquisition Fee (aka Dealer Fee) Delivery Fee (shipping from out of town) 1ST Mo Payment (if applicable) Down Payment (if applicable) Security Fee (if applicable) Residual Value (hard to get info) TTL (varies)

  • Go down this list, of what the rep mentions over the phone...then once he is finished with the pitch, ask him for the missing unmentioned fees. Write it all down.

Ask the rep what Is the length of the car lease and warranty coverage. Typically it's a 36mo lease/36K mi

When leasing your first car, you have to understand that these dealership finance managers (the guy you meet for your paperwork) their "bread and butter" is selling you extended warranties. They get commission on those sales. You will hear their pitch in the finance office...they will do anything to make the sale, even trying to demasculate you, so to pressure you. Don't buy it. Ever. They know that if the car is a lease, the sale will be harder, than if you bought the car.

Its also a game, once you get the information, wait and gather the deals. Then call a dealership of saying you got a really good deal, and seeing if they can beat that one. Do not mention the company you got the great deal from, just see if they can beat it.

Hope this helps!

/r/personalfinance Thread Parent