I was in the same boat since I got a 2015 V6S vert off the lot and not a coupe like I wanted. In the end, it was not worth the money to upgrade to an R. I figure in another 3 years, the F-Type will undergo enough changes for me to still want an R or I can move on to something nicer. I still love the V6S though.

 

The bank sets a "buy rate". If the dealer gets a higher rate, the loan is purchased at a premium (for instance, if the loan is $100,000, the bank may buy the contract for $105,000...and that $5,000 is profit to the dealer). It's possible that the dealership is giving up profit on that car and making it up in the loan premium in order to make the deal work. It could also be that the bank needs a higher rate because of your credit attributes OR because there's so much negative equity being added to the deal (which is a risk based factor in some banks' rate formula).

As for "trade in"...you don't own it. It's not a trade. You're canceling a contract and a 20% hit on a car that's so new is to be expected. I personally wouldn't buy it for anywhere near MSRP when I can get new with no risk of uncertainty. When I bought my S, the dealer had an R that someone changed their mind on after 3,000 miles for 20,000 off msrp.

 

I am a commercial banker but I have no leasing expertise on car leases. I'd suggest you ask the dealer about that. I think the short answer is "yes" since the rate of depreciation on the car stabilizes after you take the initial hit driving it off the lot and instantaneously making it a "used car". May I suggest you play around on intellichoice.com?

 

Regarding trade in and cancellation of the contract...it's not really a cancellation and there is no penalty. With a lease you have the option to buy the car at anytime. You can make all your payments and buy the car at the end of the lease terms for an agreed upon value. Or you can just buy it sooner with the calculated payoff amount (which obviously will be higher than the end of lease agreed upon value). When you trade in your lease all the dealer is doing is paying Jaguar the calculated payoff amount. The trade in is what the car is worth currently on the market, and the difference is the equity, which can be negative. You can do it yourself if you want. Private sell the car....then come up with the difference and pay off Jaguar. The dealer is just saving you the hassle of selling your own car private party. For some cases you can have positive equity if the car has not depreciated as much as the lease depreciation.

 

so I just officially told the dealer the deal is off for the R. she was understanding, but said if I want the 2017 R later in the year it will be more expensive. do you think these were just parting shots or will it really be more expensive for me to get it later on?? I suspect the former.

 

Well, the cost of cars rarely goes down. However, the cost as a portion of your income will go down as your income increases. Plus, cars tend to get better as time goes on. Therefore, it is smart to wait. If you really want nice cars as you get older, it would be wise to sacrifice now in order to avoid paying interest later. Enjoy the great car you have now and save some money so you'll be in a better position to buy your next car.

 

thanks!

 

What she said is a crock. The available discounts at the end of the model year are always highest.

 

+1 She is full of it.

 

diablomkii was the R you were going to do the deal on a 2016 or 2017?

 

I second this advice. I bought my S with 6k miles on it for $21,000 off original sticker. Looked and smelled like a new car. I personally stopped buying new cars years ago. Have saved tens of $ thousands.

 

lobsterclaws, it was a 2016.
yes I agree the slightly used R idea makes sense. and when the time comes. I will need all of you guys' help getting this lease off my hands and getting a used R

 

The cost of trading in would be higher, because your car will be worth less later in the year - more miles and time on it.