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Dealer fees on incentive leases?
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Posted by Peter H. Deckert [Email] (more from Peter H. Deckert) on Sun, 5 Aug 2001 12:43:48 Share Post by Email
In Reply to: Dealer fees on incentive leases?, keeton, Sun, 5 Aug 2001 10:03:35
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No - I don't believe it - a dealer is trying to "pull a fast one" and padd his portfolio? The car is fine, the dealerships marginal at best...

If a dealer reduces his price or lease base for you, you really ought not be taxed on an amount that you are not paying. In other words, please no tax on incentives! Dealers have been quite "creative" in their attempts to recoup some of the reductions. They often do this by adding one "fee" or another - more or less legitimate - designed to get back closer to MSRP, the basis created to compare apples with apples. As far as depreciation is concerned, it should be based on MSRP too - to get a meaningful comparison.

Remember that these admittedly very attractive incentives, are offered for a (good?) reason: at MSRP level, there just is not enough action! So the manufacturer sweetens the deal and prays that the dealers pass on most, if not all, of the manufacturer's incentives. Dealers often do - and even offer their own incentives if they want the sale bad enough. Take your time and shop around - and insist on complete disclosure in writing.

The car is fine, the dealerships marginal at best... Good luck! Peter



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