Re: Dealer

[Osman Parvez <oparvez1@nycap.rr.com>]

> If you plan to lease the new car, be extra careful on the interest
> >rate.  If you cannot get the lowest price, go to another dealer.
> >Always remember, a low monthly payment could equal a long car loan and high
> >interest cost.
> 
> I'm doing a four year loan. I have a thing about owning cars. Leases are
> too controlling.
> 

Leases work quite well for many people. By some estimates, almost 50% of
new cars leaving showrooms are leased. Two things to keep in mind with
leases:

1. The interest rate is called the "money factor". I don't recall the
specific multiple to get the actual interest rate, but it is easy to get
the approximate interest rate from the money factor. 

2. More important than the "money factor" and monthly payment is the
company you are leasing with. No, not the dealership but the bank that
is buying your lease. There are a number of leasing companies who offer
extremely low interest rates but make up the difference by charging more
for aquisition, disposition, and wear and tear. They typically only buy
people who have "perfect" credit and moderate to high incomes. Usually
they also only lease out automatics, not 5 speeds.  These companies have
no interest in keeping you a customer, they are in it for a one time
high profit on the deal. Be weary. It is best to lease with the
manufacturer of the vehicle or a well known regional/national bank.

If you are offered a very low monthly payment, look into the other fees
in the lease and how they would compare with a lease offered by the
manufacturer of the vehicle. In the case of Audi this is Audi Financial
Services, a subsidiary of Volkswagen Credit.

HTH
-Osman