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Land Rover LR3 Lease Questions

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  • ehnjehnj Posts: 20
    RM, I never got a response from CAR_MAN.

    Which dealer in NJ are you working with? I am in NJ too, working with the dealership in Parsippany and Woodbridge. I got a similar quote on a V6, MSRP of 45.9K, cap cost of 36K, residual is 56%, money factor 0.00385, for a total of $610/mo (incl. tax) on a 30mo - 15k lease. Looks like you got a great deal with your cap cost being 10k under MSRP.

    I want a NAV, so need to go with the V8. MSRP and cap cost are higher, but money factor and residual are much better than the V6
  • gablesgables Posts: 5
    Richardmartyn,

    My delaer said that I could not get both the marketing allowance and the subsidized lease money factor. It lookls like you are getting both?

    My dealer is unwilling to go below $47,900 for a vehicle with an MSRP of $50,100. My $1,500 coupon takes it down to $46,400, however, I KNOW he can do better thatn the $47,900. I've been at this for a week and he will not budge.

    It seems like dealers in the Northeast are willing to negotiate to move inventory before the 2007 models arrive.
  • Hi brian500. Land Rover's lease program for this truck varies by trim level. For now I will assume that you are interested in leasing a 2006 Land Rover HSE V8 7-Passenger to give you an idea of what the LR3's program is currently like. If you want a different version of this truck, let me know. Land Rover Capital Group's current buy rate lease money factor and residual value for a 36 month lease of a 2006 LR3 HSE V8 7-Passenger with 12,000 miles per year are .00180 and 53%, respectively. Its 10,000 mile per year residual value, I believe that LRCG actually uses 10,500 mi/yr, would be 1% higher.

    Car_man
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  • Hi dpeck1. I believe that the truck that you described has a spread of around $4,500 between its full MSRP and dealer invoice price. You were quoted a discount of $3,300 on it, which is probably around $1,200 over dealer invoice, which isn't bad. For additional feedback on how much you should pay for this truck right now, make sure to stop by the following discussion: "Land Rover LR3: Prices Paid & Buying Experiences".

    Using the prices that you mentioned in your post, an MSRP of $50,800 and a selling price of $47,500, and Land Rover Capital Group's base lease program for this truck, I estimate that its zero down, pre-tax monthly payment should be around $678. I calculated a lease without a capitalized cost reduction for you because it is in your best interest not to make one because if your leased truck is totaled in an accident or stolen and never recovered your down payment essentially disappears. You can apply the $1,500 coupon to cover any other charges that are due at lease signing, like the acquisition fee.

    Car_man
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  • Hello gables. Land Rover is currently providing dealer cash on the 2006 LR3. Specifically, it has $5,000 on V8 and $6,000 on V6 models. It also is providing lease money factor support on V8 LR3s. This dealer cash is not compatible with the V8 models's special money factors but it is available on leases of the V6 model. Are you interested in the SE7 V6 or V8? It makes a big difference. Let me know and I will tell you what this truck's current lease program is like.

    Car_man
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  • Ehnj, Land Rover is not currently providing lease support on LR3 V6 models. As a result, if you want to lease one through Land Rover Capital Group, you will have to use its standard lease program which is not very good. On the plus side, since you are using LRCG's standard program you can take advantage of the $6,000 dealer cash that is currently available on LR3 V6 models. Make sure to use this cash to help you negotiate an attractive capitalized cost for your lease.

    LRCG's current buy rate lease money factor and residual value for a 27 month lease of a 2006 LR3 V8 HSE 7-Passenger with 15,000 miles per year are .00143 and 62%, respectively. This lease program is not compatible with any dealer cash.

    Car_man
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  • Hi gables. A well equipped Land Rover LR3 SE V8 7-Passenger has a spread of around $4,500 between its full MSRP and dealer invoice price. You were quoted a discount of $5,200 on this truck. This low price leads me to believe that the dealer you are working with may be using the $5,000 dealer cash that is currently available on LR3 V8 models to lower your truck's selling price and then running your lease through an independent bank. I say through an independent bank because this dealer cash is not compatible with supported leases through Land Rover Capital Group. If this is the case, you should be able to negotiate a much lower selling price than this. If not, you are getting a heck of a deal on this truck's cap cost. For a lease through LRCG, make sure that the dealer is using its current buy rate lease money factor of .00195 for a 36 month lease of this truck to calculate its monthly payment.

    Car_man
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  • The latest lease you were quoted is an excellent deal, ehnj. If I personally had the coupon I would use it to cover any fees that are due at lease signing rather than applying it as a cap cost reduction.

    Car_man
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  • Richardmartyn, the $6,000 dealer cash and $1,000 lease cash that you were quoted for a lease of a 2006 Land Rover LR3 V6 right now are correct. You can negotiate the $595 acquisition fee until you are blue in the face, but you will not be able to get the dealer to waive it. Most banks, including Land Rover Capital Group, charge an acquisition fee on every vehicle that they lease. The selling price that you were quoted for this truck looks good and the money factor that you were quoted is in line with LRCG's current buy rate for a lease of an '06 LR3 V6. If you like the truck, I personally don't see any reason not to pull the trigger on this deal.

    Car_man
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  • Hi gables. The LR3 V8 has special lease money factors available on it right now that are not compatible with the dealer cash. There is no lease support available on LR3 V6 models, so one can lease it through Land Rover Capital Group using its standard lease program and take advantage of the dealer cash and lease cash.

    Car_man
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  • ehnjehnj Posts: 20
    Car-Man, thanks for all your responses. Very insightfull. Back to my quote ($560/mo, 30 mo/15k lease, V8 7passenger, PSI, Navigation, Lighting and cold climate package - MSRP = $53650), turns out that it is for a loaner. The dealer is going to get me specifics (miles, etc.).

    Question: since I am leasing the car, and even with a loaner, I should be turning in the car at end of lease before the warranty expires, does it make a difference whether I have loaner or new one? are there any other factors I am not thinking of. Is there any normal wear that I should have them "fix" (e.g. put new tires on?)

    Appreciate your thoughts.
  • gablesgables Posts: 5
    Can you please elaborate further on my current offer? I don't believe that I've been offered a deep discount on MSRP. Here are the facts again:

    Vehicle: 2006 Land Rover LR3 SE V8 7-Passenger model
    MSRP: $50,100
    Sell: $47,900
    Residual: 67%
    M-Factor: .00152
    Term: 30 months
    Miles: 12,000

    Accoridng to Edmonds, the dealer invocie for this vehicle is $45,655. I recognize that the MF is low and the dealer is using LRCG's special rate. However, the dealer is either not applying the "dealer cash" to this deal or is keeping it as additional profit.

    What should I do with my $1,500 coupon? Should I apply it to the "sell price" to reduce my monthly payments or use it to pay the first month's payment, plus the bank fee, tag, etc.?

    Thanks for your anticipated response.
  • ehnjehnj Posts: 20
    I am keeping at it... here's the latest firm quote I got:

    MSRP: $54,925 (LR V8 SE7 loaded)
    Cap Cost: $48,197 ($1850 under invoice)
    Demo w/ 6000 miles
    30 mo, 15k lease for $599 (taxes included)
    $1836.20 due at signing

    I have not included my $1500 coupon, but will use that to pay for the inception cost.

    Question: is there any rule of thumb to determine the cap cost for a demo? Am I getting a good deal?

    Appreciate any thoughts.
  • ehnjehnj Posts: 20
    Gables,

    On a new V8, MSRP $53650, I am only able to get a cap cost of $49,700 ($3950 off MSRP). The only way I am able to get a good cap cost ($6000+ off MSRP) is to go with a loaner.

    The dealer also told me that they can't combine the dealer cash with the special lease rates.

    Car_Man responded to me earlier that he'd use the coupon to pay the inception cost.
  • sdradsdrad Posts: 3
    Hi all,

    Looking to lease a 2006 SE V8, 3rd row, lighting, nav, bluetooth, sat, MSRP $52,750. Was originally going to finance, had the dealer at $47,700, less $1500 coupon for a total of $46,200. Have decided to lease. Based on the 46,200 as a cap, what can I reasonably expect year end for a residual and MR? Probably going to go 36 mos, need 15K/yr. Please advise, thanks in advance.
  • ehnjehnj Posts: 20
    sdrad,

    as stated a couple of times in earlier postings, the dealer is not able to combine the dealer cash ($5000) with the favorable lease rates on the V8. You were able to negotiate the lower purchase price thanks to the dealer cash. You probably won't be able to use that same price as your capitalized cost.

    Residual on a 30 mo, 15k lease is 65%, it will be a little less for 36 mo (I think the special lease rate is on a 30 mo lease, so you may want to consider that in stead of the 36 mo lease). Money factor is 0.0016.
  • I recieved the $1500 coupon a couple of months ago and, of course, have misplaced it. Does anyone have a number for LR marketing so that I could verify its existance before purchasing a new vehicle?! I am planning to finalize a deal on an LR3 this evening.
  • Hey there Car_man:

    Well, I'm now the proud owner of a LR3 V6 and thrilled with the deal I worked out with the Princeton NJ Dealer.

    Many thanks to you and your team for your expert advice and for this smart website. If it werent for you I would not of known about the $1500 certificate and the pros and cons of leasing this SUV. I like being an educated buyer.

    Cheers mate!
    Richard
  • Mate:

    Go to Princeton LandRover NJ...tell them I sent you, Richard Muir. They are excellent and will make it work...

    Cheers,
    Richard
  • I'm heading tonight to my first visit to a dealership in Indianapolis area. Been reviewing the posts on the site and doing my online research, but am a newbie and looking for some strategies on negotiating cap cost on a 2006 SE, rear seat, cold climate, heavy duty, and lighting packages. MSRP 51,675.

    Edmunds puts invoice at 46,679 and TMV at 48,459.

    From tracking above posts, looks like dealer cash of $5000 not available on SE leases, but 30 mo lease MF is .0016 and residual 63%.

    Is it reasonable to target at or below invoice in my cap cost negotiations? (Last night visited Audi dealership on Q7 and they jumped at $1000 above invoice, even though Edmunds TMV was equal to MSRP). I'd love to come in in the mid 40s.

    Any thoughts on opening bid strategy would be appreciated, since the lease terms per LRCG appear attractive.

    Cheers.
  • cegceg Posts: 1
    I am a returning leasee and the dealer's first offer is as follows:

    2006 LR3 V8
    navigation, xenon, cold weather, bluetooth
    sticker 51,450
    discount 4,000
    sell price 47,450
    30 months/ 10.5k miles/ 1,782.13 up-front / 613.13 per month includes sales and property tax of 47 per month.
    money factor is 00152 residual is 68%

    Is this a good deal relative to what others are seeing?
  • I went to a dealership yesterday in NJ and signed the papers to lease a loaner LR3 V8 SE with 5-6000K miles.

    It has a Cold Air Pkg,3rd Row,Satellite Radio and Bluetooth. The MSRP was $50,000 and they're giving it to me for $44,900.

    After $1,000 out of pocket, my monthly payment is $495 for 30 months.

    I'm wondering if anyone can tell me whether or not this is a good deal?
  • ehnjehnj Posts: 20
    genef4363

    I am working with the same dealership in Woodbridge, NJ on a V8 SE loaner with 5K miles. I've got an MSRP of $54,925, capitalized cost of $48,197. Residual is 65%, money factor 0.0016. Monthly cost for a 30mo - 15k lease is $599/mo. $495/mo looks like a great deal. How many miles/mo are you getting. What is your residual and money factor?
  • CarMan,

    I have a 2007 HSE with pretty much all the options ordered and expected in the next 3 or 4 weeks. Do you have any info yet on MSRP, residuals, money factors, etc. for this model? If not, when do you anticipate having this information as I would like to hear your thoughts regarding getting the best lease deal on this 2007 vehicle before going in to the dealership to pick up the car.

    TIA,
    Mark
  • You're very welcome, ehnj. No, it doesn't really matter whether you get a brand new LR3 or a loaner, especially if you plan on entering into a lease that is shorter than its warranty. The only problem that I have with loaner vehicles is that I personally usually find that dealers are not willing to provide enough of an additional discount on them for me to personally justify going with one over a brand new vehicle. Unless I am getting a tremendous deal on a demo, I just personally would rather have a brand new model that no one else has driven. Again, this is more a matter of personal preference than anything.

    Car_man
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  • Hi gables. The dealer cash that Land Rover is currently providing on the 2006 LR3 is not compatible with Land Rover Capital Group's special lease program. You can only take advantage of the dealer cash if you pay cash for or finance this truck. The money factor and residual value that you were quoted look good to me. You might want to shop around or negotiate a little more on this truck's selling price though. You;re getting a $2,200 discount on this truck, but I believe that there is a spread of over $4,000 between its MSRP and dealer invoice price. Make sure to stop by the following discussion to see how much other community members have paid for similar trucks lately: "Land Rover LR3: Prices Paid & Buying Experiences".

    Car_man
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  • Hi sdrad. Land Rover Capital Group's current buy rate lease money factor and residual value for a 36 month lease of a 2006 Land Rover LR3 SE V8 3rd Row with 15,000 miles per year are .00195 and 53%, respectively.

    Car_man
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  • Congratulations on your new truck, Richard. I;m glad to hear that you got such a good deal. Enjoy your new ride!

    Car_man
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  • Hi sgtbigtoe. Given the fact that the dealer cash is not available on leases of this truck, unless you have one of the $1,500 certificates that has been mentioned I doubt that you are going to be able to negotiate a selling price that is below dealer invoice. I am not intimately familiar with what the market is like for the LR3 in your area, but you will probably have to be at least $500 to $1,000 over invoice for this truck. You may be able to get additional feedback on how much you should pay for this truck by visiting the following discussion: "Land Rover LR3: Prices Paid & Buying Experiences".

    Car_man
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  • Hi genef4363. The truck that you described has a spread of around $4,400 between its full MSRP and dealer invoice price. You were quoted a discount of $5,100 on it. This is below dealer invoice, which is an excellent deal on a lease of this model, even for a truck that already has 5,000 miles on it. The monthly payment that you were quoted looks good too.

    Car_man
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