Well, putting down a deposit is already showing your cards. I guess if it's refundable it doesn't really matter but I don't think I'm going to put one down.

 

Never negotiate in monthly payments, always look at the total coat of the car, regardless if you are paying by cash, leasing, financing or future financing.

Zapped from my Galaxy Nexus via 0's & 1's.

 

As long as they aren't having you sign anything (buyers order or purchase contract), since you have right of refusal, you can wait - of course when it comes in, they'll hope that you'll fall in love with it and pay whatever they want for it.

You negotiate a lease basically the same way as a traditional finance deal - selling price and then the money factor (similar to APR on a loan), the manufacturer sets the rate, so there's no shopping your credit union or anything like that, but Hyundai allows the dealer to mark up the rate, which is profit to the dealer. Ask to see the rate sheet to know they are charging exactly what is shown with no mark up. Once you negotiate selling price and are sure they aren't marking up the rate, the only other variable is how much you want to put down to adjust the payment.

At this point, the dealer could negotiate the price, but they won't have the money factor & residual value (what it's worth after the lease) to be able to work out payments for you until just before the car arrives.

Good luck!

 

Thanks man!.. I will procede with the deposit at 2 separate locations... (both which I would be #1 at) and see if I can make sure that I get what I want at the right price...

 

If you are leasing you should focus on:
- Out the door price of the car. This includes the price of the car and any/all fees. This is usually referred to as the capitalized cost. This is very important and, again, make sure you know any and all fees you are paying here.

- The residual value. This is what the car will be worth at the end of your lease. Watch it for low residual values as a car that depreciates very quickly is not a good lease usually.

- The money factor. This one is important and often overlooked or not understood. Money factor is, essentially, what you are paying in interest on the car during the life of your lease. Watch these numbers. Car dealers are notorious for charging people high interest (I have heard of numbers as high as 14-18%). This link will explain:
Money Factor | Car Lease Money Factor - Explained Your credit rating will affect this, and if you have good credit you should be paying less than 6% interest IMHO. By law, dealers do not have to tell you what interest rate you are paying so make sure you get the moneyfactor and know for yourself.

Also you need to really understand the terms of the lease. How long. I personally don't lease a car, but would recommend sticking to a 2-3 year lease if possible, and don't get stuck in anything over 4 years.

Mileage is important. Most leases are 12K or so a year. If you drive 15K a year don't get a 12K a year lease. Be honest and make sure you don't get penalized for going over.

Downpayment. Don't put a big downpayment on a lease. I would typically recommend nothing more than $1K. Again, this is a car you will not be owning. Don't put $3-5K+ down on a lease.

Gap insurance, IMHO, is a must if you lease. This covers you if you get in an accident and the insurance company determines the car payout of damage is less than what you owe on the car. Without it, you would have to come up with the difference out of pocket and this could be thousands of dollars.

Also understand what penalties you have to pay to get out of your lease early, or if you go over mileage.

Leasing is not trivial. Don't just look at the bottomline car payment amount.

 

Another question related to this thread. If we are thinking about paying cash (no financing), I've heard it's important not to reveal this until you have a price set in stone. Is that true? What's the advantage? What are some good tips for cash buyers?

 

Another question related to this thread. If we are thinking about paying cash (no financing), I've heard it's important not to reveal this until you have a price set in stone. Is that true? What's the advantage? What are some good tips for cash buyers?

Don't negotiate terms of payment until final price is reached.

I love how one of the first questions I get asked is "So, are you looking to trade in your car?" lol

 

^I always say "Not sure" to that one. In fact, I say that a lot at car dealerships lol

Sometimes I'll allude to a deposit just to keep them nibbling and doing research for me, but usually I say "are people doing preorders or deposits yet?" or something.

 

I am always completely honest with my dealer reps. I have been on both sides. Yes, I have a trade in. I have a deposit.

And as was on some other thread, I disagree with the CW that you shouldn't bargain based on monthly payment. I don't see a problem with that IF you dictate that some of the variables that reach that payment are non-negotiable. e.g. If you want to lease and you tell them you want 39 months, they can't reduce the cost by stretching it to 42. Well, I suppose they can, but go back to my first sentence. If I've been clearly honest with them and they try and singe me, then I'm walking. I don't care how good the deal might've been.

I had a young associate four-square me some years ago and a manager try and hold my keys hostage in the same visit. My wife is just as knowledgeable as me about these things, and not nearly as patient. That poor associate nearly had his head ripped off when he was only trying to do what his superiors had told him (instead of listening to his customer). And the sales manager had me make quite a big scene on the sales floor with other clients nearby when he held my keys.

My point is that I am honest, and I expect the sales rep to be the same while still trying to make a buck. That's okay. That's the game. Not a big deal. If they can't give me the trade in I want, or the interest rate, or whatever, then I am not bound to stay there. I'm probably at about 70/30 on staying/walking when buying new. When I walk, they have always called. And that's just fine. No big deal.

There's a lot of dehumanizing of dealer associates out on the web. Some of it with a particularly vicious tinge to it. And my experience is that if I get a salesperson that's going to BS me, I will literally find someone else on the same lot to work with that is not at all that way. It sends a very loud message to the rep and management when you decline to further work with someone and ask for someone new.

To ramble further, there is no need to be defensive, angry, or otherwise afraid (the former two are usually derived from the latter). Do your homework, and, as others have said, don't sign anything until you know its okay. Its even okay to take the paperwork home and look it over. Don't rush. Pretend you're at a fine restaurant. Really look over the menu. Know what you're getting. Ask questions about the ingredients.

You might find it even turns into a fairly enjoyable experience.

 

I agree... honesty is key.... I can smell BS a mile a way... I have actually told a sales guy "you bullshit your friends, I'll bullshit mine... lets not bullshit each other".... and "don't mistake kindness for weakness"... I'm a REALLY nice guy.. but I'm highly intelligent and an Alpha... so I will catch you and I will ruin your day if you even try to BS me...lol

 

Suggestion for Credit Union members.
Besides most CUs offering a decent financing rate for a car loan, majority of them participate with UBS and MVCP programs. Basically the way it works, you request a certificate for a UBS or MVCP participating dealer in your area (you only get one dealer assigned from each). Call (usually internet sales manager) UBS or MVCP representative, set up an appointment; representative will disclose UBS or MVCP pre-negotiated price based on dealer's invoice.
My pre-negotiated price for a VT w/AT & Ultimate Package is ~$25250 including freight (not including TT&T).
As far as financing, I plan to finance through my CU. Their rate is 3.25 for 60 month loan; I know some other CUs have better rate, but this is the one I am a member of. Much better than 3.99% from Hyundai(Motozuma) imo.

MVCP: MVCP - Motor Vehicle Certification Program
UBS: United Buying Service

 

Suggestion for Credit Union members.

Thx, for the info.......... I like the CU's