Lease Help....
#1
Lease Help....
Hi all, been creeping around for a little while and think I am ready to join the "pack!"
I am normally a cash buyer of used vehicles and definitely understand the benefits of that. However, I typically purchase another vehicle every 1-2yrs making a small profit (again with used vehicles).
With a new, high dollar car, a lease makes sense to me...only paying tax on my "portion" and after 3yrs dumping the car.
Anyway, are the numbers....
(In my state, the tax for "my portion" is due upfront).
Down Payment: 4K-includes all of my tax and all other dealer fees
Monthly Payment: $1249.00
3yr lease, 7,500 miles per year for a 2016 F-Type R convertible.
MSRP: $113,633
Residual: $68,229.00
Money Factor: .00217
Agreed Value with dealer discounts: $99,659....paperwork from the dealer shows a selling price of 102,xxx and then a "discount of 2,500"....
To me the payments and look a lot better than what I have found that others are paying. However, the money factor seems high to me??? Maybe they made up the high money factor by discounting the "agreed price."
Please let me know, I am ready to make a decision in the very near future.
Options:
Vision Pack
Extended Leather
20" Rotors
Red seat belts lol
Thanks in advance!!
Jake
I am normally a cash buyer of used vehicles and definitely understand the benefits of that. However, I typically purchase another vehicle every 1-2yrs making a small profit (again with used vehicles).
With a new, high dollar car, a lease makes sense to me...only paying tax on my "portion" and after 3yrs dumping the car.
Anyway, are the numbers....
(In my state, the tax for "my portion" is due upfront).
Down Payment: 4K-includes all of my tax and all other dealer fees
Monthly Payment: $1249.00
3yr lease, 7,500 miles per year for a 2016 F-Type R convertible.
MSRP: $113,633
Residual: $68,229.00
Money Factor: .00217
Agreed Value with dealer discounts: $99,659....paperwork from the dealer shows a selling price of 102,xxx and then a "discount of 2,500"....
To me the payments and look a lot better than what I have found that others are paying. However, the money factor seems high to me??? Maybe they made up the high money factor by discounting the "agreed price."
Please let me know, I am ready to make a decision in the very near future.
Options:
Vision Pack
Extended Leather
20" Rotors
Red seat belts lol
Thanks in advance!!
Jake
#5
That converts to 5.206% interest. That's probably not bad for a lease these days. Leases always cost more, but you drive out with a low payment and not much down. And the leasing company takes the risk with the residual. Sounds about what I was quoted several months ago. If you love the car, can afford it, go for it.
#6
That converts to 5.206% interest. That's probably not bad for a lease these days. Leases always cost more, but you drive out with a low payment and not much down. And the leasing company takes the risk with the residual. Sounds about what I was quoted several months ago. If you love the car, can afford it, go for it.
Too many choices out there!!
#8
Be aware that dealers can and do mark up the money factor above the buy rate and will be particularly inclined to do so if the selling price of the car is somewhat aggressive.
If you have top tier credit it's always wise to ensure you are getting the buy rate. Dealers can influence two of the three factors that drive lease payments and if they can get away with it they will.
Ask to see the worksheet that lists residuals and MF numbers and make sure you are getting the lowest rate.
If you have top tier credit it's always wise to ensure you are getting the buy rate. Dealers can influence two of the three factors that drive lease payments and if they can get away with it they will.
Ask to see the worksheet that lists residuals and MF numbers and make sure you are getting the lowest rate.
The following users liked this post:
084runnerltd (03-05-2016)
#9
It's not so much that...more that I am hesitant to lease.
I normally prefer to buy a 80-120k (original sticker) used car that is several years old, keep it for a few years (2 yrs being the max) and sell for what I paid for it, very close to what I paid for it, or even a small profit.
The M6 and 911 would fall into that category....911 being an 02-04 and the M6 being 2009 or so.
Just hard to swallow the lease being about 50k out of pocket, then at month 36 having nothing to show for it...
Even if the 911 or M6 dropped 10k in 2years (which is more than I would expect) I am only out 10k...with the lease I am out 50k....just feels like throwing money out the window....
On the other hand, if I bought the Jag new, I would have 8% tax on the entire purchase price and if I sold in 2yrs would take a hefty hit....
I know that cars aren't an "investment," but not losing money on them is something I like to do....
I normally prefer to buy a 80-120k (original sticker) used car that is several years old, keep it for a few years (2 yrs being the max) and sell for what I paid for it, very close to what I paid for it, or even a small profit.
The M6 and 911 would fall into that category....911 being an 02-04 and the M6 being 2009 or so.
Just hard to swallow the lease being about 50k out of pocket, then at month 36 having nothing to show for it...
Even if the 911 or M6 dropped 10k in 2years (which is more than I would expect) I am only out 10k...with the lease I am out 50k....just feels like throwing money out the window....
On the other hand, if I bought the Jag new, I would have 8% tax on the entire purchase price and if I sold in 2yrs would take a hefty hit....
I know that cars aren't an "investment," but not losing money on them is something I like to do....
#10
#11
Have you looked a used F Types? That is another way to go. I don't blame you, that's a lot of money and in 3 years having no equity in the car. I doubt the Jag will even be worth the 60% residual. Jaguars don't hold their value, but then most other six figure don't either.
Again, I know when I purchase cars that are 5-6yrs old I am giving up the joy of having a new car with the latest and greatest tech/performance....
I guess the money isn't the issue, but the thought of the money is.....if that makes sense...
I know, I know, "you gotta pay to play..."
#12
Unfortunately, this is changing. Electronics, hydraulics, adaptive this and that... by the time the car is out of warranty these become maintenance nightmare.
For example, I used to drive Mercedes SL roadsters. Until Mercedes decided to make dynamic hydraulic suspension called ABC a standard feature. It was neat at first, but then came leaks, malfunctions and multiple visits to the shop. I would have tolerated this if it was just expensive to fix, but it would refuse to stay fixed - you have to completely overhaul the system to get it working right again.
So I added up my repair bills over past couple years (I am mechanically inclined AND have reputable indy for complicated stuff, it would be higher if I was servicing at the dealer) and concluded it would be cheaper to lease a brand new car. (getting $15K off MSRP helped)
So I am about to take delivery of a brand new F-Type. We will see what I think about this in 3 years.
I am not sure how reliable is F-type, but generally I would not recommend touching out of warranty Jaguar, Mercedes, or BMW (or any other car with bells and whistles). Maybe Lexus is OK, but they make boring cars. Even Porsche, which used to be super-reliable, are now problematic (have you heard about 997 block issues?).
Last edited by SinF; 03-06-2016 at 08:40 AM.
#14
@whoever was before me cuz I can't bear the thought of going back to quote the last post
That ad is gross on so many levels. Yeah, I know, my opinion of it is not popular. And I'm normally just messing around when starting my options, but this!! It's just... Ugh.
It makes makes women seem both repulsive and pitiful. It turns me off from Aston, even though I don't know if it's an official ad, I know there was some controversy about it before. It's misogynistic and it has less class than a fiat ad or a football beer commercial.
That ad is gross on so many levels. Yeah, I know, my opinion of it is not popular. And I'm normally just messing around when starting my options, but this!! It's just... Ugh.
It makes makes women seem both repulsive and pitiful. It turns me off from Aston, even though I don't know if it's an official ad, I know there was some controversy about it before. It's misogynistic and it has less class than a fiat ad or a football beer commercial.
#15
@whoever was before me cuz I can't bear the thought of going back to quote the last post
That ad is gross on so many levels. Yeah, I know, my opinion of it is not popular. And I'm normally just messing around when starting my options, but this!! It's just... Ugh.
It makes makes women seem both repulsive and pitiful. It turns me off from Aston, even though I don't know if it's an official ad, I know there was some controversy about it before. It's misogynistic and it has less class than a fiat ad or a football beer commercial.
That ad is gross on so many levels. Yeah, I know, my opinion of it is not popular. And I'm normally just messing around when starting my options, but this!! It's just... Ugh.
It makes makes women seem both repulsive and pitiful. It turns me off from Aston, even though I don't know if it's an official ad, I know there was some controversy about it before. It's misogynistic and it has less class than a fiat ad or a football beer commercial.
#17