My lease #'s not adding up
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Joined: Jul 2004
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My lease #'s not adding up
Okay, perhaps I'm missing something here but if you lease a car for 36 months, shouldnt your down payment cap cost reduction, plus your base monthly payment x 36, plus, the end of lease buy out price at the end of the lease = the price of the car?
For example, you and the dealer decide on a purchase price of the car is $36,000. Your initial down payment after the fees is $2000. Your monthly payment is $500/month before adding tax. Thus the total of the down payment + (500 x 36) = $20,000. Shouldnt then the option to purchse price after the lease be $16,000? I think my lease is screwed up. Someone please set me straight.
For example, you and the dealer decide on a purchase price of the car is $36,000. Your initial down payment after the fees is $2000. Your monthly payment is $500/month before adding tax. Thus the total of the down payment + (500 x 36) = $20,000. Shouldnt then the option to purchse price after the lease be $16,000? I think my lease is screwed up. Someone please set me straight.
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Joined: Mar 2003
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From: Los Angeles Area
Re: My lease #'s not adding up
did you also forget your lease (rent) charge to factor in there???
Out of the 500 your paying each month, about 110-125 of that is your rent charge on the vehicle, which is basically the same thing as interest.
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Out of the 500 your paying each month, about 110-125 of that is your rent charge on the vehicle, which is basically the same thing as interest.
Stillen Stage 2 Supercharger, Stillen Front Bumper, Stillen Carbon Fiber Hood, Injen SES Cat-back Exhaust, Injen Cold Air Intake, 19" Axis Hiro Anthracite, Clear Corners
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Joined: Feb 2004
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From: CA,Sherman Oaks
Re: My lease #'s not adding up
lol I was thinking the same thing. But for me my car payment changes every month it's funny It like goes down a few cent's a month I started at $482.54 then $480.70 then the last payment $480.20 hehe don't tell the finance company lol
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2004 Skyline 350GT 5AT DG/G Clears,Bats, system soon!
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Joined: May 2003
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Re: My lease #'s not adding up
You're still borrowing money for 3 years, my friend. The added cost is interest. I've never leased a car, but I believe the term they use for this is "money factor" in lease-lingo.
In other words, the leasing company fronts the entire price of the car to the dealer at lease inception and charges you a monthly fee on your payment for that. A lease is actually quite similar to a conventional car loan in financial terms except that you have to give the car back when the term is up (or buy it for additional cash).
In other words, the leasing company fronts the entire price of the car to the dealer at lease inception and charges you a monthly fee on your payment for that. A lease is actually quite similar to a conventional car loan in financial terms except that you have to give the car back when the term is up (or buy it for additional cash).
Re: My lease #'s not adding up
dont forget you are also paying interest on the whole car not just the leased part..
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2003.5 DP 5AT Sedan
14.2 @ 97.18
Z-Tube
K&N Drop In & Airbox Mod
10 Wire Hyper-Ground
Crawford Plenum (V4)
UR Crank Pulley
Hotchkis Sways (M/M)
Polk EX-3500 Tweeters/Shock Sensor/H-Liner
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