Originally Posted by Jim_in_PA
It's not a good idea to have any form of "down payment" on a lease. All that means is that you're pre-paying part of the capital cost...the lease is still going to cost you the same in the end. Fees and state taxes...yes, not much you can do about that, but a zero-down lease is what's usually best to shoot for.
Agreed. I was just questioning the ha being advertised "under $400" because it's usually a ridiculous cap cost reduction.
I went through this with several salesman when I was shopping last month, they couldn't get over the fact that I started by telling them that I wasn't going to reduce cap cost, and they kept trying to come back to is.
I had to quit on a couple of them completely because they just couldn't understand it.
It's like dealers are stuck in this "need something down" thing and use the X amount/mo to sell it. Everyone would be better served to realize they should negotiate total price, then work from there. You know the residual, you know the money factor, it's pretty easy to figure out what your monthly payment is going to be.
Asking for a payment right off the bat is playing into the same trap that dealers use with the "four square" sheet. You can negotiate payment later, if you want a couple more bucks off it's fine to say at the end "get me to $350 OTD and I'll sign right now" when you're at $360 is fine, because you're talking about an extra $350 or so off the total price, depending on tax rate.
Not directed at you, just wanted to echo your comments and get it out there again for others to read.