Automotive

Car lease advise needed - first time leasing

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  • Oct 11th, 2019 10:43 am
[OP]
Deal Addict
Oct 21, 2008
1266 posts
398 upvotes

Car lease advise needed - first time leasing

Thank you for reading the thread.

I want to lease my new car and it would be my first ever lease.

I have read and gathered some information about negotiating etc.

Dealer almost agreed to lease the car @ 1% of unhaggle price plus no admin or doc fee. They are saying I have to pay licensing fee. Is this common or is it something I can negotiate?

Also I have read about wear and tear coverage. Is this extra? Can I negotiate that price?

Also is there anything I need to worry about after lease return conditions or costs?

Thank you very much for your help.
16 replies
Deal Expert
Aug 22, 2011
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Center of Universe
Licensing fee is the cost of the ownership and license plate sticker.
[OP]
Deal Addict
Oct 21, 2008
1266 posts
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vkizzle wrote: Licensing fee is the cost of the ownership and license plate sticker.
Thank you. That I must pay then. Grinning Face With Smiling Eyes
Deal Addict
Jun 18, 2018
1337 posts
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Toronto
Also I have read about wear and tear coverage. Is this extra? Can I negotiate that price?

Also is there anything I need to worry about after lease return conditions or costs?

Wear and tear coverage is usually extra... it's basically like if anything is more than "wear and tear" of the vehicle when you return, you have to pay to fix it (if its not covered under warranty). Though it's a little stupid because most have conditions on it that only like the first $500 is covered or something. I would ask the dealership for some more information on the costing, what's covered, and the conditions on it like up to $x dollars.
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Jul 5, 2011
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Typically the wear & tear coverage is the lowest profit margin add-on that a dealer will sell, and because of that they are not typically discounted.

It is possible though, especially if you plan to buy something else like tint or warranty. It really depends on the Finance Manager you get during your paperwork/credit process... Some of them will stonewall you on everything and will not discount much / at all.
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Deal Guru
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Jul 12, 2003
11643 posts
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Toronto
Wear and Tear protection is usually not discounted, I was trying hard and no luck, lol
If there is a discount given, it could be during the negotiation on the car deal and the Salesperson suck part of the cost from his commission to satisfy the client and close the sale.
That's the only scenario I can think of.

Cars Tints, leather protection, anti-rust protection, those are easily negotiated because they are charging way more to begin with. But it is usually cheaper to get it done elsewhere on your own after you got the car.

OP, what car you are getting for no admin fee and 1% above unhaggle's car cost?
Retired Forum Moderator February 2009 - June 2015
[OP]
Deal Addict
Oct 21, 2008
1266 posts
398 upvotes
Thank you everyone.

Last question, there is no cost to return after lease etc as long as car is in mint condition?

I am getting 2019 Honda CRV Touring.
Sr. Member
Jan 20, 2012
826 posts
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Toronto
As long as all the tear/wear are within acceptable range and no damage to the car. You will be free to walk after lease end. Even there are some excessive wear charge at the end of the term, if you are leasing another one from the dealer, they will eat it. But if you have Tear/Wear coverage, then you are probably hassle free when returning the car.
Deal Addict
Jan 25, 2008
1932 posts
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Montréal
When you return a car generally you can return it with tires that are 4/32nd remaing and 1 non-deep scratch per panel smaller than a business card or something like that... worth checking out what is covered in "standard wear and tear" vs "optional" coverage. As a general rule I never buy insurance I don't have to. They are priced so the seller wins.
[OP]
Deal Addict
Oct 21, 2008
1266 posts
398 upvotes
On a lighter note, does anyone have anything to add or have any advise me before I request mod to lock this thread?

I am getting worried to see one down vote. ;)

Whoever downvoted, please also provide constructive feedback as to what I did wrong. I promise to not repeat the same mistake.
Deal Expert
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Jul 30, 2007
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Make sure you get proper insurance coverage.
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Jul 5, 2011
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Here you go OP:

1. Have the vehicle inspected officially PRIOR to dropping it off.

2. Make sure it's inspected well before the end of your lease

3. If your lease is effectively over and you go to drop it off, you will likely NOT have an opportunity to fix anything wrong with the car yourself. The dealer will take your plates off the vehicle and give you the bill to pay and that will be that.

4. You can put used tires on the vehicle at the end of the lease if need be as long as they are in spec - some manufacturers will only accept the same OEM tires that the vehicle came with

5. Don't go too cheap on body repairs or you will get dinged for "Poor Previous Repair" and get charged even more money than what you would have been charged originally

6. Try to buff / fix anything that you can before you go in on the cheap to see if they will let them slide

7. If the manufacturer uses a 3rd party to do the inspection, they will not miss anything and every call will be by the book. The 3rd party will typically come to your home / work if that is your preference. Again make sure you do it ahead of time and you will get a copy of the report with chargeable damages
2013 Wins - $1320 - Woohoo!
Deal Addict
Jan 15, 2017
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Several things to keep in mind when leasing.

1. Don't sign for long term leases. As you don't own the car, you do not want to be investing in a car by paying for repairs that you will be handing back to a dealer. Shorter leases make more sense on this point as you most likely will just change the oil, top up the windshield wash and be done.

2. Leased vehicles must be returned with the same equipment and options that were there when purchased. This means any after market upgrades or add-ons must be removed prior to returning the vehicle. And don't even try to argue that you increased the value of the vehicle and that's why you are leaving them on - they won't care. They will charge you to return the vehicle to its original equipment list.

3. Leased vehicles are expected to have normal wear and tear. Here's the link to Honda's: https://www.honda.ca/Content/honda.ca/5 ... 02019).pdf

4. Wear and tear protection is an option and must be purchased at the beginning of the lease only. You cannot purchase it once the lease starts. You cannot for instance suddenly have vehicular damage and purchase it. Whether you need it depends on your driving skills, how well you look after the vehicle and where you park it. If it is parked in a parking lot all day at work or school or parked on the street I would suggest you take a good look at it.

5. Remember when leasing that you are committing to making the payment every month. Some people compare leasing to simply renting the vehicle and incorrectly assume that they can simply return the vehicle when they wish similar to a short term rental. This is not true. Breaking a lease early is expensive. To get out of a lease, you either have to find someone else to take over your lease or you buy out your lease and then sell the vehicle yourself. Requesting that the financial arm simply take back the car will be expensive.
[OP]
Deal Addict
Oct 21, 2008
1266 posts
398 upvotes
Thank you very much everyone. These are super useful and gives me confidence that things will be OK. I have always owned a car and never leased so bit nervous.

I do park at GO parking lot so I guess I will go with wear and tear coverage since many time people just careless in rush.

I cannot thank you enough for your help for answering my questions and some good tips and tricks.
Jr. Member
Mar 2, 2012
171 posts
200 upvotes
MILTON
Have you already signed your lease or not?
I just bought my 11th brand new car and all I can advise you is that the price/payment is very negotiable. Don't believe Honda online payment estimator, that is just the worst price that you will pay.
I went to 5 different dealerships and their "best offer" difference is 7000$. I got an amazing deal, the last dealer included 20" wheels and tailgate step for 100$ extra, which is over 2000$ worth.
If you are planning to buy an additional protection and/or other packages that is also negotiable as well.
Are you trading in your vehicle? One dealer may give you more than another, shop around.
Dealers are desperate to sell cars nowadays.
Deal Expert
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Apr 21, 2004
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se@n wrote: On a lighter note, does anyone have anything to add or have any advise me before I request mod to lock this thread?

I am getting worried to see one down vote. ;)

Whoever downvoted, please also provide constructive feedback as to what I did wrong. I promise to not repeat the same mistake.
Since you are leasing, just make sure you don't have to worry about the 1.5T during the term, like more frequent oil changes, or charged for wear and tear as a result of the potential fuel dilution of the motor oil.
Sr. Member
Jan 20, 2012
826 posts
447 upvotes
Toronto
Since you are getting a Honda. Honda offers pre inspection months before lease end. You can schedule one ahead of time to estimate the damage. Pro is that you will know your estimate cost at the end if there any damage. Con is that they know your damage and may check for repair defect in the next inspection. It will cost you more if repair didn't pass.

It happened to me that I had scratched bumper, dented under frame and dented door. I painted the bumper and repaired the under frame before the inspection. Both passed the inspection. I was then estimated a charge of $75+HST for the dented door. Everywhere was asking for $150+ to fix the dent. At the end, I paid Honda $75+HST and walked without fixing it.

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