OT: Leasing Question, Using outside Financing (non-dealer) Options

[Qarl]

Looked at a replacement SUV for the wife today.

Dealer offers $4500 incentives on vehicles financed

Dealer offers $1000 incentives on vehicles leased

I inquired if I purchased the car outright, if I could get the $4500 cash incentive... dealer said yes.

So here's my question....

What if I go with leasing through my credit union or another entity and just bring a check to the dealer.

For example... my credit union, allows me XX% residual on the car with X% lease money factor of X months, and gives me a check to bring to the dealer (good up to $XX,XXX.XX)

I negotiate with the dealer is if it were an outright purchase and get the larger incetive (rebate). I write the dealer the check from the credit union.

I take advantage of good leasing deals and better rebate indentives.

Has anyone done this?

Thanks!

[Hi_Fi_Guy]

I've only leased through the manufacturer but I do have some good and bad experiences. Have leased through Diamler-Chrysler, Porsche Cars NA, BMW, Land Rover, & GMAC.

Based on what you are saying the up-front deal sounds good. So what is the end-of-lease deal like through your credit union? I think that will be the make it or break it factor.

Some questions you might want to know the answers to.

Who really owns the car? Credit Unon or do they "sell" the lease to another company?

What do they charge for too many miles, door dings, window chips?

As an example Land Rover allows up to one 1/4" non-piecrcing chip or crack in the glass while GMAC allows two similar chips before charging you for a new windshield.

Also, if you lease through Porsche and you bring it back in 24 months and decide to lease another Porsche they will often overlook minor dings, or being a few miles over because they want your repeat business. A private company may or may not care about your repeat business.

What happens if you need to end the lease early? This has been different for every lease I have dealt with. GMAC has a very pleasant end-of-lease or early termination experience following the lease amortization table to the penny, while Diamler-Chrysler allows the dealers to re-negotiate the value of the vehicle if early termination occurs which could cost the unsuspecting leasee thousands extra.

Is gap insurance built into the lease or does it cost extra?

Anyway, you are probably getting a good deal, I would simply go over the lease paperwork with the Credit Union and look for any potential pitfalls. You already know the dealer incintives, the money factor, etc. so you are way ahead compared to many consumers.

Also, did you flat out ask the dealership to give you the better deal on the lease? Never hurts to ask.