Last post on Dec 08, 2013 at 12:05 AM
You are in the Prices Paid - Buying & Leasing Experiences
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Ford Edge, Car Leasing, Car Buying, SUV
#379 of 791 Re: Need help! Am I getting ripped off? [jlbradshaw]
Dec 04, 2007 (10:05 am)
You have to have AWD if you live in Utah!!! The numbers that are relevant are as follows:
MSRP: The factory sticker price on the window sticker and includes destination fee.
Capital cost: The "selling price" of the car. This should be no more than the invoice price for the car including destination fee. I just got my wife's 2008 Edge for that number. It was about $500 over what the Edmunds website shows for the invoice price as it includes regional advertising fees the dealer pays. DO NOT figure rebates in at this point!
Rebate & Incentives: Whatever you qualify for should here be deducted off of the Capital cost figure you started with. Right now I am aware of $1500 in rebates/cash available with a Salt Lake City zip code. There may be more. Ask the dealer to show you the "Vincent Report" for that car's VIN. It will have all available incentives for that exact car.
Residual Amount: This is the percentage that the car retains at the end of the lease. Yours was 48% for the lease you asked for according to the dealer. THe 2007 residual is lower than a 2008 and also varies between AWD and FWD.
Lease interest rate: This is the rate they charge on the lease. Yours was .5%, which is excellent. The 2008 rate is 2%.
Acquisition Fee: Ford charges $595. THis should be added to the capital cost for calculations.
Document fees: Dealer may charge a small fee.
Sales tax/property tax/title/tag: Each state is different. IN KS sales tax is added to the payments each month. Property tax is paid when you get your tag along with the tag fee.
THERE SHOULD BE NO OTHER FEES OR CHARGES! They may try to sell you Wear Care, which is additional insurance. There should be no "inception" or other fees-Period!!
When you have all these numbers, go to www.leaseguide.com/calc.htm This is a lease calculator site that lets you double check the numbers the dealer gives you. If they are not pretty close, you are being ripped off. Even selling at invoice, a dealer gets a 3% holdback payment from Ford, so even if they sell you at invoice, they are making 3% of MSRP.
Sorry for the long post but hopefully you can use this information and the lease calculator to show them in black & white why you will not pay more that you should! A reputable dealer will be honest with you and not try to take advantage.
#380 of 791 Re: Need help! Am I getting ripped off? [hardhawk]
Dec 04, 2007 (11:15 am)
I neglected to say that the lease interest rate can be different depending on the length of the lease. Sorry about that!
#381 of 791 Re: Need help! Am I getting ripped off? [hardhawk]
Dec 04, 2007 (11:20 am)
Thanks Hardhawk, I am going to the dealership right now to take the vehicle back and let them know that they are full of it!
#382 of 791 Re: Need help! Am I getting ripped off? [jlbradshaw]
Dec 04, 2007 (11:50 am)
Take it back? Did you sign papers already???
#383 of 791 Re: Need help! Am I getting ripped off? [ddelise]
Dec 04, 2007 (12:23 pm)
Hopefully they just let her drive it for an extended test hoping that she will like it and that will be enough for her to overlook the bad deal. That seems to be a pretty common practice. After all, who wants to take back the brand new car he/she has been driving for a day? They won't get serious with her until they know she is willing to walk away from a bad deal.
#384 of 791 Re: Need help! Am I getting ripped off? [hardhawk]
Dec 04, 2007 (12:51 pm)
That's what I figured (or hoped) - let's wait and see what happens!
#385 of 791 Re: Need help! Am I getting ripped off? [ddelise]
Dec 04, 2007 (1:22 pm)
Yes, I will be anxious to hear what happened. A dealer has to make a reasonable profit to stay in business, but that deal she was being pitched was way beyond reasonable. It is sad that car buying/leasing has to be such a negative experience for so many people. That is why I love my dealership. They are open, honest, and they will give me a fair deal without having to do battle, plus they give me great service. That is why I am on car #8 from them since I started doing business there 20 years ago.
#386 of 791 Re: Need help! Am I getting ripped off? [hardhawk]
Dec 04, 2007 (3:57 pm)
Well I am back! To answer your question, I was just test driving. I went to the dealership and told him that his deal was crap and he said well we aren't making any money on this deal! I said well yes you are, the holdback is your profit and these stupid fees. He asked for the keys to the Edge and said "well if you change your mind, let me know." So I left. I went to another dealership that had an 08 with vista roof, sirius radio, leather, AWD and some other things, but they quoted a payment of 574. When I laughed and started coming at them with numbers, they stuttered and got their sales manager that wasn't any smarter and so again I had stupid car salesmen telling me a bunch of lies! Anyways, I left there as well. So now I am back to square one. I don't know who to go to, because the dealerships that I have been to haven't been able to find what I want. They find them out of state, but I don't want to agree to buy a vehicle without seeing it first.
Here's the kicker.......The first guy, Marco, called me back and wanted to know what he could do to sell me the car, I told him get my payment around $400. He called me back several times later explaining fees to me, but unwilling to lower the price of the car. So I told him that I am going to have to go somewhere else. He is faxing me the information right now "the lowest I can go", but the payment is still close to 500!
How are you guys finding such great deals, I am finding nothing at all unless I go to a stripped down model.
#387 of 791 First time lease. 2008 Edge
Dec 04, 2007 (4:07 pm)
Can anyone help? First time trying to lease. 2008 Edge AWD Limited (yes I fell for the rear cargo cover option). Dealer says it will be here in early January sometime. Retail list price $34,600, Invoice as per Edmunds and kbb is $32,390. I am looking for a 36 month deal with either 12,000 or 15,000k mi/year. BTW -I live in Ohio if that makes any difference. Can put down two to three thousand - no trade. I am expecting payments in the high $300's. Can anyone help this novice?
#388 of 791 Re: Need help! Am I getting ripped off? [jlbradshaw]
Dec 04, 2007 (7:08 pm)
There is a Japanese saying that when translated to English says, "Always appear to cooperate."
When negotiating for a car, DO NOT alienate yourself from the salesman. manager, or dealership. It will make them want to work with you LESS. Do they want your business? ABSOLUTELY! Do they want to be called a--holes or treated disrespectfully? NO!
AND what they seem to hate most are internet know-it-alls so learn what you can but DON'T share your knowledge with them. Just negotiate with what you know.
NEVER talk about a trade-in until you have negotiated the price of your new car.
The key to negotiation (I am a professional REALTOR for 25 years) is to have it appear that everyone wins in a successful negotiation.
Therefore, insist on invoice pricing. I buy/lease a car about every 2 years, and I have NEVER (yes, NEVER) paid a penny over invoice. Sometimes you can tell them you're a member of a local Credit Union and can even get it for $100-$200 under invoice. Are you a BJs or Costco member? Mention that too.
Once you establish a price, then the key is the interest rate. From there, ask for a complete accounting of evry penny to look for the "fat" in their bottom line price.
Whatever you do, DO NOT burn your bridges behind you because you just may have to go back a dealer you walked away from if they have the only model you are looking for. That's a bad position to be in.