Topic: Another opinion request: my first new car - lease or buy?

[sirAQUAMAN64]

I would caution you from assuming you could resell yourself for more than residual. Plus, if trading it in (which most people do when repurchasing) the dealer would need to resell themselves netting you the lower wholesale price. With the Cdn dollar and prices/incentives fluctuating all over the place, hard to guage where the used market valuation will be down the road.

As for other dealer's quotes, I imagine there aren't many dealers in NB. I'd be keeping their quotes as cards in your hand and as an unknown to the dealer. I'm always curious to see what 'deals' they offer on an individual basis... kind of interesting and even fun to me. If you happen to have the best experience at one dealer or it's the closest/your preferred dealer but not the least expensive, that's when I'd reveal I could purchase elsewhere for less and could they match/beat it. But that's just my style.

There's not tonnes of margin in a Rabbit, but do you know what invoice price is, etc for the model & options you're after?

[toolatecrew]

This is great stuff.

The dealer residual is $10,600 after 4 years with 100 000 kms on it. Assuming I could privately sell it for a bit more than that means I would make back the difference in monthly payments.

Thats a great point, to me. I am definitely leaning more towards purchasing this bad boy! I have a meeting at the local VW dealer friday.. I'll let everyone know how it goes!

I have quotes from other dealerships in New Brunswick, should I let them know this in person or wait until I leave and e-mail them the other quotes to see if they can beat it?

Thanks everyone, this place is great.

Zach

Get a Car Cost Canada invoice price sheet (or simliar). Look at what if any rebates financiing etc is offered. Come up with a price based on the CC quote (totaly ignore MSRP ) plus freight plus PDI plus any required taxes..(no etching, no "admin/document fees" etc. if it isn't a tax don't pay it)

Make your offer based on this price do not talk monthly payments.

Where in NB are you? I only ask becuase if you are in Fredericton and they won't play ball then maybe you can drive to Saint John but if you are in Edmunston I doubt you'll get much value out of emailing a dealer in Moncton.

The email can you beat this wuote game probaly won't be very effective. Your best bet is to go into the dealer, if they have the car you want even better. If you are there to buy that car they won't want to you to walk out and lose the sale. Email? They may never see you set foot in their showroom.

Don't negotiate without the invoice cost and good luck.

[Zsaw]

I am in Fredericton, actually.

I think I will be negotiating mostly with the fredericton dealer but I certainly don't mind going to St John or Moncton if the deal is sweet enough.

Just bought a Car Cost account, looks like I have a bit of room to work with, well within what my calculations left me hoping!

Thanks a lot for the advice everyone.. Ill let you know how I make out!

[mmorriso]

zsaw

not sure if it is tooo late to put my 2 cent in but it may help you to think over your vehicle needs over a longer term (like 12-15 years) instead of just 4.  when you run the numbers you will realize that purchasing a car that is a few years old and driving it as long as possible will save you the most money in the long run.  you will also get the best use out of whatever you put into the car like new tires/rims, brakes etc. when the time comes to change them.  try as best you can to estimate your other costs like housing, food, entertainment, vacations, paying your student loan and saving for retirement.  if you are concerned about warranty VW has one of the best certified used programs in the business.  you could get a used GTI for the price of a new Rabbit for example.  if you do decide on a brand new ride opt for electronic stability control so that you have the latest safety features and if you decide to sell it down the road it will be a selling feature since all new cars will have this as standard equipment by 2012.  the Rabbit with 4 doors seems to be a very practical choice, however, you may kick yourself when you realize how much more you are going to spend on gas compared to the competition.  personally i drive a mazda protege5 and love it since it is practical, fun to drive, and reliable, however, i wish it was more fuel efficient for my bank account and the environment.

good luck! 

[audustdix]

Yes leasing will allow me to walk away from the car in 4 years, when my student loans are long gone as well.