What to Expect Lease Rate???
#16
08-06-2008 | 10:25 AM
Originally Posted by rhampar
When leasing you shouldn't only take monthly payments, down payments and similar things into consideration. Instead you need to look at the entire package.
1 - Cap Cost - This is your fully negotiated selling price of the car less trades, down payments etc.
2 - Money factor - this is the interest rate you will be charged.
3 - Residual price of car - Nobody so far has even mentioned this is the thread so far.
4 - Lease term - Typically 24 - 36 months.
1 - Cap Cost - This is your fully negotiated selling price of the car less trades, down payments etc.
2 - Money factor - this is the interest rate you will be charged.
3 - Residual price of car - Nobody so far has even mentioned this is the thread so far.
4 - Lease term - Typically 24 - 36 months.
When I negotiate a lease, I only consider 4 factors:
- up-front costs
- monthly costs
- annual mileage allowance (and over-mileage penalties)
- term
capital cost - It's not my problem how my costs are derived. This is the leasing company's money.
money factor - It's not my problem how my costs are derived. This is the leasing company's money.
residual value - If you don't plan on buying out the lease, this is irrelevant.
While I agree that it's good to understand how the costs are calculated, but all you really need to care about are the costs to you as the lease holder.money factor - It's not my problem how my costs are derived. This is the leasing company's money.
residual value - If you don't plan on buying out the lease, this is irrelevant.
Shopping all the input factors (e.g., capital cost) can lead you down a rat-hole that can let a leasing company adjust other factors to their benefit.
I recommend working with a fixed term and mileage based on your own needs, then shopping the up-front and monthly costs to multiple leasing companies.
#18
08-06-2008 | 07:49 PM
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Originally Posted by 350Zed
I somewhat disagree with your line of thinking. Let me explain why...
When I negotiate a lease, I only consider 4 factors:
Shopping all the input factors (e.g., capital cost) can lead you down a rat-hole that can let a leasing company adjust other factors to their benefit.
I recommend working with a fixed term and mileage based on your own needs, then shopping the up-front and monthly costs to multiple leasing companies.
When I negotiate a lease, I only consider 4 factors:
- up-front costs
- monthly costs
- annual mileage allowance (and over-mileage penalties)
- term
capital cost - It's not my problem how my costs are derived. This is the leasing company's money.
money factor - It's not my problem how my costs are derived. This is the leasing company's money.
residual value - If you don't plan on buying out the lease, this is irrelevant.
While I agree that it's good to understand how the costs are calculated, but all you really need to care about are the costs to you as the lease holder.money factor - It's not my problem how my costs are derived. This is the leasing company's money.
residual value - If you don't plan on buying out the lease, this is irrelevant.
Shopping all the input factors (e.g., capital cost) can lead you down a rat-hole that can let a leasing company adjust other factors to their benefit.
I recommend working with a fixed term and mileage based on your own needs, then shopping the up-front and monthly costs to multiple leasing companies.
I agree for the most part with what you say. I feel that you do need to work with a fixed term and mileage that works best for your needs. However I feel strongly that one should really do their homework and know what to look out for when leasing and how to calculate ALL THE NUMBERS. God knows most dealers are sharks and they're masters at twisting things around to get an unsuspecting buyer seeing things their way. Also it's always a good idea to shop your lease around before signing on the dotted line to insure your getting the best deal possible.
#19
08-06-2008 | 08:57 PM
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I think the first question that should be asked is......
You're 18, why do you want a 3 year lease?
You're willing to spend $18,000 to borrow a car for 3 years?
Leases are good if you are the type of person who:
1. Always buys new cars
2. Trades cars in after 2-3 years for a new one.
3. Drives a limited amount of mileage
4. Doesn't modify cars
If the above is you, go for it. If not..... you're only 18, there are some more financially "wise" decisions you could make and still be happy with your car.
For example, you could easily buy a used 2007 G35 sedan for $24k (only about $6k more than what you'd spend on a lease). And in 3 years..... it'll still be worth $17k or so (which is $17k more than the lease is worth).
After 1 month of driving, you'd never know the difference between if you leased a new 08 or bought a used 07. And in the end, that decision would save you $11,000.
Just something to consider.
You're 18, why do you want a 3 year lease?
You're willing to spend $18,000 to borrow a car for 3 years?
Leases are good if you are the type of person who:
1. Always buys new cars
2. Trades cars in after 2-3 years for a new one.
3. Drives a limited amount of mileage
4. Doesn't modify cars
If the above is you, go for it. If not..... you're only 18, there are some more financially "wise" decisions you could make and still be happy with your car.
For example, you could easily buy a used 2007 G35 sedan for $24k (only about $6k more than what you'd spend on a lease). And in 3 years..... it'll still be worth $17k or so (which is $17k more than the lease is worth).
After 1 month of driving, you'd never know the difference between if you leased a new 08 or bought a used 07. And in the end, that decision would save you $11,000.
Just something to consider.
#20
08-07-2008 | 03:28 AM
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Originally Posted by silverG2007
I think the first question that should be asked is......
You're 18, why do you want a 3 year lease?
You're willing to spend $18,000 to borrow a car for 3 years?
Leases are good if you are the type of person who:
1. Always buys new cars
2. Trades cars in after 2-3 years for a new one.
3. Drives a limited amount of mileage
4. Doesn't modify cars
If the above is you, go for it. If not..... you're only 18, there are some more financially "wise" decisions you could make and still be happy with your car.
For example, you could easily buy a used 2007 G35 sedan for $24k (only about $6k more than what you'd spend on a lease). And in 3 years..... it'll still be worth $17k or so (which is $17k more than the lease is worth).
After 1 month of driving, you'd never know the difference between if you leased a new 08 or bought a used 07. And in the end, that decision would save you $11,000.
Just something to consider.
You're 18, why do you want a 3 year lease?
You're willing to spend $18,000 to borrow a car for 3 years?
Leases are good if you are the type of person who:
1. Always buys new cars
2. Trades cars in after 2-3 years for a new one.
3. Drives a limited amount of mileage
4. Doesn't modify cars
If the above is you, go for it. If not..... you're only 18, there are some more financially "wise" decisions you could make and still be happy with your car.
For example, you could easily buy a used 2007 G35 sedan for $24k (only about $6k more than what you'd spend on a lease). And in 3 years..... it'll still be worth $17k or so (which is $17k more than the lease is worth).
After 1 month of driving, you'd never know the difference between if you leased a new 08 or bought a used 07. And in the end, that decision would save you $11,000.
Just something to consider.
and well my family only leases... my dads leased 9 caddy;s in a row (woulda taken a cts but they want 675 a month...) our only experience buyin a car ended up with the car blowin up in our drive way in the middle of the night when off... by some crazy mechanical screw up (fin lincoln towncar)
can anybody gimme a realistic idea of what ill be payin? on a g35
#21
08-07-2008 | 07:19 PM
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Originally Posted by KBS756
i wanna lease because its cheaper on monthly payments for a nicer car and well my family only leases... my dads leased 9 caddy;s in a row (woulda taken a cts but they want 675 a month...) our only experience buyin a car ended up with the car blowin up in our drive way in the middle of the night when off... by some crazy mechanical screw up (fin lincoln towncar)
can anybody gimme a realistic idea of what ill be payin? on a g35
can anybody gimme a realistic idea of what ill be payin? on a g35
G35xS - Includes Premium & Sport pkg, splash guards MSRP $39,120
$35,000 Negotiated price for car
$22,983 60% Residual after 36mo. based on 12k mi yr.
$12,017 Depreciation - Divide by 36 for monthly depreciation pmts
Then you need to calculate finance charge. Cap Cost & Residual x MF .00167 divided by 36.
In the end you should be paying around $431 mo plus tax. You'll also need to pay upfront security deposit, aquiistion fee, disposition fees, 1st months payment, tags etc.
As mentioned by people as well as myself in earlier posts you need to do your OWN HOMEWORK on this as the above is just a guideline.
#22
08-07-2008 | 08:37 PM
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Originally Posted by KBS756
i wanna lease because its cheaper on monthly payments for a nicer car
and well my family only leases... my dads leased 9 caddy;s in a row (woulda taken a cts but they want 675 a month...) our only experience buyin a car ended up with the car blowin up in our drive way in the middle of the night when off... by some crazy mechanical screw up (fin lincoln towncar)
can anybody gimme a realistic idea of what ill be payin? on a g35
and well my family only leases... my dads leased 9 caddy;s in a row (woulda taken a cts but they want 675 a month...) our only experience buyin a car ended up with the car blowin up in our drive way in the middle of the night when off... by some crazy mechanical screw up (fin lincoln towncar)
can anybody gimme a realistic idea of what ill be payin? on a g35
Leasing a Cadillac? Talk about throwing money away!
Those things have TERRIBLE resale. That means you can buy a barely used one for cheap (and probably have lower payments than a lease) and you'll end up with something to show for it in the end.
It's your money. But, just because your dad leases cars doesn't mean it's the smart way to spend YOUR money.
FWIW, leasing is the most expensive way to spend money on a car. (other than buying new and trading in frequently).
You're 18, do you HAVE to have a brand new car, or will a 1 year old one suffice? I really think you'd be happier buying used. ($11k happier to be exact).
#23
08-08-2008 | 12:37 AM
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Originally Posted by rhampar
Try this when you talk to a dealer
G35xS - Includes Premium & Sport pkg, splash guards MSRP $39,120
$35,000 Negotiated price for car
$22,983 60% Residual after 36mo. based on 12k mi yr.
$12,017 Depreciation - Divide by 36 for monthly depreciation pmts
Then you need to calculate finance charge. Cap Cost & Residual x MF .00167 divided by 36.
In the end you should be paying around $431 mo plus tax. You'll also need to pay upfront security deposit, aquiistion fee, disposition fees, 1st months payment, tags etc.
As mentioned by people as well as myself in earlier posts you need to do your OWN HOMEWORK on this as the above is just a guideline.
G35xS - Includes Premium & Sport pkg, splash guards MSRP $39,120
$35,000 Negotiated price for car
$22,983 60% Residual after 36mo. based on 12k mi yr.
$12,017 Depreciation - Divide by 36 for monthly depreciation pmts
Then you need to calculate finance charge. Cap Cost & Residual x MF .00167 divided by 36.
In the end you should be paying around $431 mo plus tax. You'll also need to pay upfront security deposit, aquiistion fee, disposition fees, 1st months payment, tags etc.
As mentioned by people as well as myself in earlier posts you need to do your OWN HOMEWORK on this as the above is just a guideline.
does the fact that the g37 sedan is coming in sept have any effect on the price of a lease yet?
#24
08-19-2008 | 02:50 PM
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#25
08-19-2008 | 02:51 PM
#28
08-20-2008 | 01:07 PM
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Its up to you, but honestly I would roll everything into the lease. I got a G35xS with nav, premium and tech for 36 months and 15k miles. I paid first month payment up front and rolled all the other fees into the car. honestly if you think about it, with a lease, any money up front is a waste since in the end if u total the car at any point you are out that much cash. As long as you can afford to make a higher monthly payment, don't give them anything over the first month's payment up front. (I also got the rim and tire package which I paid up front since it was a gift). Anyway
15k miles, 2008 G35xS with premium, nav, and sport and mudguards and a spoiler (the car came with them from the factory), I paid 553.22 a month, got 35 more payments to go and the car is gone..
lemme know if u need any more assistance.
I got the car from Ray Catena in Edison, July's numbers were a little worse than August's unfortunately, but the white was hard to come by. Talk to Tom Accattata and PM me if u are actually gonna go see him, i'll let him know u are coming since i am headed that way today or tomorrow.
15k miles, 2008 G35xS with premium, nav, and sport and mudguards and a spoiler (the car came with them from the factory), I paid 553.22 a month, got 35 more payments to go and the car is gone..
lemme know if u need any more assistance.
I got the car from Ray Catena in Edison, July's numbers were a little worse than August's unfortunately, but the white was hard to come by. Talk to Tom Accattata and PM me if u are actually gonna go see him, i'll let him know u are coming since i am headed that way today or tomorrow.
#29
08-20-2008 | 04:01 PM
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KBS756:
I would not be able to tell you if it was a good deal or not unless you provided me with the selling price of the car. Loosely speaking, all other values of a lease are fixed, i.e. MSRP, money factor, residual, term (# mos./# miles), title/registration fee, acquisition fee, doc fee, and tax rate . (I understand that you can change the term, which will change the residual and mf, but I am assuming that you have already picked one that works for you - personally, for the G35x, the 36 month term is probably the best value as the cost of money is lowest) The only variable(s) that you will be able to negotiate on is selling price of the car, dealer add on fees (which are typically a load of crap), possibly security deposit.
Whew...now if you can tell me what the MSRP is and the actual negotiated selling cost of the vehicle is, then and only then, will I be able to give you my opinion on whether or not it is a 'good deal'.
Ground Beef
I would not be able to tell you if it was a good deal or not unless you provided me with the selling price of the car. Loosely speaking, all other values of a lease are fixed, i.e. MSRP, money factor, residual, term (# mos./# miles), title/registration fee, acquisition fee, doc fee, and tax rate . (I understand that you can change the term, which will change the residual and mf, but I am assuming that you have already picked one that works for you - personally, for the G35x, the 36 month term is probably the best value as the cost of money is lowest) The only variable(s) that you will be able to negotiate on is selling price of the car, dealer add on fees (which are typically a load of crap), possibly security deposit.
Whew...now if you can tell me what the MSRP is and the actual negotiated selling cost of the vehicle is, then and only then, will I be able to give you my opinion on whether or not it is a 'good deal'.
Ground Beef
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