If anyone’s got any tips for buying/leasing a car abroad (i know it’s different than the US) please let me know! Specifically interested in Germany.
@StingerTT knows
Are you an expat in Germany or a military member under SOFA?
Neither… I’m a dual citizen though I live in the states. Mom lives in Germany (German citizen) and needs new wheels
German leasing and purchasing works very similarly to what you experience in the states.
I do not know of the German “leasehackr” equivalent site or even if it exists, but if your mom is German living in Germany there’s a good chance she’s able to navigate the system far better than we can given our knowledge.
The advice we give in leasing 101 I think still applies in the German market. I think one of the biggest differences is most new cars are ordered and not bought from dealer inventory so negotiating on price may be limited.
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Thanks appreciate the insight. She has 0 car market knowledge since she just moved back there not too long ago and has never leased (or even purchased for that matter) in Germany
That’s good context. I had assumed she’d been living in Germany already.
I would say keep in mind that price negotiation is possible, but because cars are ordered do not expect much movement on this. The German culture I Think is very much “The price is the price” type of deal and because Germans are generally by the book I think there’s a little more transparency.
Consider, there is a 19% VAT applied to all pricing, but listed vehicle pricing tends to be the out the door price with the exception of a few bank fees you may incur. I think the delta is off by a few percentage points and not at all like it is in the US where a 20k dollar car is actually a 28k dollar car after taxes and fees.
I know leases are common under 300 euros a month (I see the ads all the time come across my FB page) and there doesn’t usually seem to be a lot of fine print. The ads definitely have the “3k down at 2.69% interest rate” type of fine print, but that’s about it. The process seems pretty straight forward.
I have not actually leased so I am not sure how open or closed ended the contracts are.
As with anything, it is imperative for your mother to read anything she signs.
With that being said, if you have been out of Germany for a long time keep in mind that in Germany, verbal contracts are a thing. In the US we have a tendency to think “if it’s not written down with a signature then it’s not a contract.” It’s actually the reverse in Germany. If your mother says “Yes, I am buying your car” or signs literally any kind of paper with a vehicle description on it, it can be used and considered as a binding contract to execute the sale of that vehicle. It’s absolutely not a “it’s done when money has exchanged hands” type of situation. This is critical to understand. Your mother can accidentally commit herself if she’s not careful.
I think that’s really the biggest thing to watch out for. Consumer laws are vastly different in Germany and nothing happens quickly. It is not uncommon to spend several weeks working with a dealership before finalizing an order contract and then wait several months to receive your new car.
I hope this helps, feel free to reach out if you have any other questions!
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Leasehacking cannot really happen if the same ecosystem doesn’t exist. A strong CPO conveyer belt that takes all these off-lease cars and thus supports the high RVs that usually make leasehacking possible.
There’s a reason BMW, MB and Lexus usually have had the highest lease percentage in the US.
Thanks this is helpful!