The lease on my Corolla is about to expire and I decided to buy it for the residual value of the lease. This price is written into your lease agreement. I went to North Hills Toyota to complete this transaction.
They started by handing me off to a sales rep... why? This is a cut & dry deal.. I've already stated my intention to buy this car and the price is pre-determined. The only variables are the interest rate and length of the loan. We should have gone straight to a finance person to fill out paperwork and that's it. Instead I get asked "where do you want to be for a payment". Really? I said just have your finance guy offer me an interest rate and we'll do the math.
Sales guy comes back with a paper showing a monthly payment that was $30 more than what I had already calculated it should be. I looked at the first line of the detail and it showed a purchase price $1,100 higher than my residual value! I told sales guy that wasn't right so he went back to finance guy.
He returns and said the difference was for "government fees" (the calculation he had also included the normal title, tax, registration, etc). I told him I'd never heard of such a thing and would need an itemization. He went back to finance guy & returned with the same "government fees" line of BS but no itemization and tried to tell us we'd incur those fees no matter where we went.
We left, went to Baierl Toyota, and they told us there are no "government fees" beyond the tax, title, and registration fees you'd expect. In fact, in a lease buyout deal Baierl said that legally a dealership can add a max of $250 to the residual value (Baierl adds $0, for the record). So what North Hills tried to do was actually illegal.
I wouldn't do business with North Hills Toyota, but if you do make sure you closely inspect every number they put in front of you before signing anything.