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Land Rover LR3 Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Greetings madiscl. You would be better off not making any sort of down payment on your lease. Doing so puts your money at risk. If your vehicle is totaled in an accident or stolen during your lease, your down payment essentially disappears. It is difficult for me to say what your lease payment should be for this truck off of the top of my head, but I can tell you that Land Rover really isn't providing any sort of lease support on 2005 models any longer. If you want to lease, you're better off going with an '06 model. I can estimate what the lease payment should be on an equivalent '06 LR3 for you if you provide me with its full MSRP and selling price and tell me how long you want to lease for and how many miles per year you need to be able to drive.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello madiscl. This would be a good price for a brand new LR3, but if this is a demo with a decent number of miles on it I personally would want a larger discount. I often find that dealers are not willing to provide enough of a discount on demo vehicles to justify purchasing what essentially is a low mileage used vehicle over a brand new one. The money factor and residual value that you were quoted are in line with Land Rover Capital Group's current program for this truck, assuming that your truck's security deposit is waived.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi geddylee2112. You never mentioned the selling price or MSRP of the LR3 that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this truck's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion of this deal if you let me know what these numbers are.

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  • steakheadsteakhead Posts: 1
    I found this forum helpful so I want to share my deal (I think I'm done but they keep on bettering each other – end of month). One thing I did among offers was try to nail down as many lease variables as I could and shared that info with the competing dealers when negotiating - but I wasn’t particular to color or options. Deal -

    2006 LR3-SE7, 1,100 miles (loaner), 2 yr, 15k lease
    -lighting package, rear seat and climate, cold package, wood trim, roof racks, and rubber mats;
    -MSRP - $50,100, cap cost $44,720, residual $35,928 (around 71% of MSRP)
    -MF 0.00157
    -$580/month payment (includes sale and excise tax) Just depreciation fee and lease fee was around $493/month.
    - about $1,500 upfront (first, $600 security, plates & registration).
  • 1234812348 Posts: 1
    2006 LR3 SE7 New, lighting package, climate package, Sirius, Cooler Box,. MSRP $52,050, cap cost $47,530. Money factor 0.00177, residual 71% ($36,955)Taxes and fees $1,483, Security Deposit $650. Total upfront payment $2,800. 24 month 15k lease $611/mo
  • bigjoelr3bigjoelr3 Posts: 16
    What is a reasonable price for a lease on a 2006 LR3 HSE with Luxury and Heavy duty package? MSRP is $56,075 and invoice is $51,093. I'm interested in a 24 month/15k miles lease. Let's assmue I could agree on a selling price of 52,500 and I don't want to put anything done other than the required minimum.
  • bigjoelr3bigjoelr3 Posts: 16
    Just got these quotes on 2006 LRE HSE, with luxury package, heavy duty package, satellite radio in Java Black, MSRP 56,975 with selling price of 52,975. For 24mos/15000 miles I was quoted $827 per month including tax of 8.25 or 8%, no security deposit and total drive off of $1233 (tags and first month payment. The money factor was .00132 and residual was 68%.

    For 36mos/15k miles per year the quote is $855/mo. Drive off is $1263.

    This is in the los angeles area. Comments on whether either one is a decent deal.
  • angelboingangelboing Posts: 16
    A dealer here in LA is offering me a new LR3 V8 SE with rear seat & lighting packages, PTI/bluetooth, cooler box, and navigation (MSRP $52,600) for $550/month including tax. The lease is for 24 months, 10,000 mi/yr, with a total drive off $4000. The money factor they had available was .00190.

    I am seeing newspaper and online ads for leases at around $400/month, with a $5000 initial payment for LR3 V8 SEs with MSRPs at $50,000 (no rear seat, or no navigation), so the numbers they qupted me didn't seem too far off. Do you think I can get a better monthly payment or negotiate for a lower drive off fee?
  • mrchilimrchili Posts: 17
    Hi All,

    New guy here....can anyone confirm if these are good numbers for me ?

    2006 LR3 SE V8 with lighting pkg, cold climate pkg, and rear seat with Climate pkg.

    MSRP-$50600, will sell it to me for invoice-$46900, or lease it for 2yrs, 12k yr, MF.00167, residual 73%, down pyt $2179.33 (bk fee, doc fee, sec fee, 1st pyt) and monthly payment of $596.33....

    do these numbers sound good or can they do better ??????

    would appreciate any info.........thanks
  • Leased a 2006 LR3 HSE that had an MSRP of $55850. Dealer discounted 5K to $50850. 24 month lease with 10,500 miles/year. Lease is $641/month with $1,650 inception fees. Money factor was 3.5% (0.001458) and residual of 71%. Dealer included front and rear rubber mats, pin stripes, Sirius Sportster with installation, and crossbars for roof rack at N/C. This was an early 2006 that was at the old pricing, but it was the colors that I wanted. :)
  • mrchilimrchili Posts: 17
    How about you Car_man, can these numbers be better?? and does the MF and Residual look right to you ?
    Would appreciate any input.
  • angelboingangelboing Posts: 16
    njlr3hseguy, that sounds like a great deal! i have a couple of questions, though. does your monthly payment of $641 already include tax? and was your drive off fee $1650 even, or do you have to include the first month's payment in there?

    the LR3 HSE that i leased sounds pretty similar to yours, except i have the sirius package already pre-installed in my car. and i'd love to get those cross bars installed, but then my LR3 wouldn't fit in my garage!

    so what color combo did you end up getting?
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Thanks for taking the time to share the details of your lease with everyone, steakhead. Detailed posts like yours are always helpful for community members who are in the market for a similar vehicle. Enjoy your new ride!

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hello bigjoelr3. Let's work up a lease payment on this truck and see what we come up with. According to my calculations, if you were to lease a 2006 Land Rover LR3 HSE with an MSRP of $56,075 and a selling price of $52,500 through Land Rover Capital Group right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $719.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hey bigjoelr3. The money factor and residual value that you were quoted are right in line with Land Rover Capital Group's lease program for this model. The selling price looks reasonable as well. Both of the negotiable aspects of this deal look good to me, but I come up with a 36 mo. / 15k pre-tax payment of $757. As you can see, this is a lot lower than the payment that you were quoted, even if yours includes tax. I would want to know why there is such a difference if I was in your shoes.

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi angelboing. The money factor that you were quoted for this truck is too high. Land Rover Capital Group's current buy rate lease money factor for a 24 month lease of an '06 LR3 V8 SE is only .00150 for the 5-Passenger and .00157 for the 7-Passenger model, assuming that you qualify for its top credit tier and pay a security deposit. It appears as though the dealer that you are working with is attempting to mark your truck's money factor up to add additional hidden back-end profit to your deal. This sort of thing happens all the time, but can usually be avoided by consumers who confront their dealer with their vehicle's actual buy rate.

    The other negotiable aspect of your deal is your truck's selling price. You really need to find out what this number is. Not only will it show you how much of a discount you are being given, but it will enable you to calculate what its lease payment should be.

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi mrchili. Dealer invoice is a very good price for this truck. Land Rover Capital Group's current buy rate lease money factor for a 24 month lease of it is .00157 through. It appears as though the dealer you are working with is marking your truck's money factor up slightly. Try to get them to use the 57 factor. Even if they won't, dealer invoice is such a low price that you are still getting a good deal.

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  • bigjoelr3bigjoelr3 Posts: 16
    Car man,

    I found out the reason why the payment was higher than what you came up with. Lots of undisclosed fees that the sales guy finally disclosed. 350 or 500 or WearCare, 595 acquisition fee and I think 600 for bank fee.

    How necessary are these fees? Can I get them to waive them. Sounds like Njlr3's lease of $641 for a HSE with 10,500 miles is a straight lease without all of these fees included.
  • british_roverbritish_rover Posts: 8,476
    The 595 acquisition fee is legit you have to pay that. We normaly roll that into the lease but you can pay for it up front.

    You don't have to buy wearcare if you don't want but if you do not buy it you have to put down a security deposit. Security depsoit is equal to your monthly payment rounded up to the next 50 dollar incremant.

    600 bank fee is totaly bogus that does not appear anywhere on a LRCG lease contract.
  • s.k.s.k. Posts: 3
    I stumbled into your forum by accident and wish that I could have discovered it earlier.

    Please tell me if I might have got a bad leasing deal. A week ago (5/30), I saw an ad on the paper by a local Land Rover dealer that they had a new 2006 LR3 SE with a MSRP of $50,770 that they were selling for $40,770. When I went into the dealership asking to see that car, I was told that it was a mistake on the news paper's part. This was actually a 2005 model, and by the way, it also had 1600 miles on it. I test-drove the car and it seemed to be in good shape. The dealership told me that there were a couple thousand dollars worth of additional dealer-installed options that they were not counting in the pricing. Although I was unhappy with the misrepresentations, I thought $10,000 to $12,000 off on the car was still a good deal, so I decided to discuss leasing the car with them.

    My leasing terms were 36 month, 15,000 miles/year and with the least amount of out of pocket money. I was told that since it was a 2005 model, they had to go with a commercial bank but that had a very good rate. The lease payment that they worked out for me was $728.44/month (7.5% tax included) with $943 out of pocket (Including the first month payment and paper work. There was no need for security deposit but I will have to pay a disposition fee when I return the car at the end of the lease.) Just to make sure, for comparison purpose, I asked them to work out the payment for the case if I would have leased a new 2006 LR3 SE with exactly the same options and same leasing terms using Land Rover financing. The factory options on both cars included lighting package, cold weather package, convenience package, rear park distance control, navigation system and a tow hitch. After crunching through the numbers, they showed me a lease rate that was more than $200 per month higher. I asked them further if they were using the MSRP value for the 2006 car calculations. They assured me that they were using a realistic sale price not the MSRP. With that information, I signed the papers and took the car home the next day.

    Upon reading the postings by "Car-man" and others on this forum today, I came to realize that I probably could have leased a 2006 LR3 SE (and without the 1600 miles on it) for near the same level of payment that I am having now. I priced out the 2006 LR3 SE with the options mentioned using Edmunds.com tools, it came out at $51,050 MSRP and $46,520 invoice. What would the fair leasing payments for such a car be? Was I misdirected by the dealership? Was the lease rate they quoted me for the 2006 car off base? If this is the case, will it be too late for any recourses such as negotiate for reducing the length of the lease to 24 months? Thanks for your help.
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