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Land Rover Range Rover Sport Lease Questions

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Land Rover Range Rover Sport. Thanks.

Car_man
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  • surfd90surfd90 Posts: 2
    This will possibly be the first time i have paid MSRP for a new car - is this really the case with other buyers?

    Here is the lease they are proposing:

    MSRP and Cap Cost with the options - $63,400
    bank fee $695
    total cap $64,095
    RESIDUAL $33,588 (is this fixed or can it be negotiated?)
    total depresication $30,507
    license $480.75
    other fee $45

    15k miles - 36 months
    $1,693.89 drive off
    $1164.55 per month


    15k/mo - 36 months
    $6,987.28 drive off
    $1000 per month

    Do you think i can do better?

    Thanks in advance.
  • 72774667277466 Posts: 6
    For that much down and per month you should just go ahead and buy.
  • You cannot negotiate the residual, it is set by the bank. I don't know if your license fees are just high because of where you live, or if they are high because they are raising the rate.
    Ask them to try Chase's lease rates. They are very good.
  • Those numbers seem similar to what I am getting quoted in San Francisco
    ....but i am thinking it may be a better purchase than a lease
  • i just leased one last week, sticker was 60k, i got 2300 off sticker. 1900 at inception (first month, sec and fees) and my payment is 839 a month before local taxes.
  • Hi surfd90. While the selling prices of leased vehicles are negotiable just as if you were paying cash or financing, I am not surprised that the dealer that you are working with is trying to get close to full MSRP for the 2006 Land Rover Ranger Rover Sport right now because it is such a new model and it has been relatively well received by the public. I personally think that it is a really neat truck, though it is a little expensive.

    One problem that I have with the lease that you were quoted is the large down payment. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Range Rover Sport would be exactly the same, regardless of whether you had put nearly $7,000 down, or had made absolutely no down payment at all.

    I will work up a sample lease payment on this truck for you to give you an idea of what it should cost to lease using Land Rover Capital Group's actual base lease program. According to my calculations, if you were to lease a 2006 Land Rover Range Rover Sport HSE (not the Luxury or Supercharged model) with an MSRP of $63,400 and a selling price of $64,095 (after adding in the $695 acquisition fee, which I though should only be $495 so there may be a little mark up going on) through LRCG right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $1,063. With a $6,000 capitalized cost reduction, which I strongly advise against, this truck's monthly payment would drop to around $879. I am not sure if there is any money factor mark up going on here because I don't know what the payments that you were quoted would be before tax. You may want to ask your dealer so that you can compare them to the payments that I came up with. Also, if there are any other Land Rover dealers in your area, you may want to see if you can get this truck for less than full MSRP.

    Car_man
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  • That was very helpful analysis! Much appreciated.

    dwax1...where did you get your car? I am in California

    thanks
  • I read a posting here somewhere where the buyer got a RRS SC on the X Plan pricing (works for a Ford partner company) from a dealer. I can't find one in So Cal who will honor this pricing. Any suggestions?

    Thanks.
  • I have always bought my vehicles, but now find myself being a partner in a new small business.

    the business itself could borrow the 75K $ for a new SC RRS or I could opt to lease:

    I guess i would be in the highest tax bracket, but I really do not understand whether that really matters.

    Does the accelerated depreciation that i would be eligible for, make any difference?

    Does acquiring a RRS with a lease make one less or more able to return a vehicle with a leaky sunroof?

    I live in North Carolina in the Raleigh area, and have not contacted any dealerships yet

    your advice or recommendations for further web based readings would be appreciated,

    cheers

    :confuse:
  • grommetgrommet Posts: 445
    No dealers I know of will discount on RRS. And markups have been seen! LR3 is pretty easy for X-Plan, but the RRS is too new and inventory is even more limited. Welcome to California. :)
  • You're very welcome brian500. I don't personally have a Range Rover Sport, though I wouldn't mind owning such a neat looking truck.

    Car_man
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  • Hi heli_doc. I hesitate to answer any specific income tax questions because I am not personally an accountant. I can tell you though that you cannot return a truck with a leaky sunroof, regardless of whether it was financed or leased. If you have one that has this problem, you will have to take it to your local dealer to have it repaired under warranty.

    Car_man
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  • ll10ll10 Posts: 1
    I am looking at the RR Sport, HSE with lux package, satellite radio and bluetooth. Sticker is $60,300, selling price $58,800. For 36 months, 10,000 miles it is about $925 / month. It is through Land Rover Capital. Their money factors strike me as high but I'm not sure.

    Any thoughts?
  • Hi ll10. Land Rover is not currently providing much in the way of lease support on the Range Rover Sport. If you were to lease a 2006 Range Rover Sport through Land Rover Capital Group right now for 36 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00285 and 60%, respectively. Using these numbers, an MSRP of $60,300, and a selling price of $58,800, I come up with a 36 month, zero down, pre-tax monthly payment of around $899. This is not that far from the payment that you were quoted. If you are having your truck's security deposit waived or if your quote includes tax, that would make up for the difference.

    Car_man
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  • rrfan1rrfan1 Posts: 7
    it seems if MSRP is 57 for the HSE and invoice is closer toi 51k. with a little downpayment you could get 36 months & 10kmiles for @ $600/month.

    putting down a small down payment, say $3k is not an issue as suggested above. I think that is is just a question of the time value of money. If the car gets totaled, insurance will pay to recoup the car.

    does anyone else think it is possible to get the RR Sport base model for 600/month with 3k down?
  • No you could not. I had a guy trying to get into the 800 dollar range for a lease pretty much the same is that. He had to put down over 7000 dollars in order to make it work and he did not want to do that.
  • rrfan1rrfan1 Posts: 7
    how did you get that 2300 off the sticker price? was your residual 58% or 60% of the total and the last question is the money factor?

    i just went to the dealership and they were telling me that the residual is 58% which i think is BS and they were trying to tell me that normal money factor was 0.0036. so the 60400 sticker was coming out to 1049 a month after 5k down.
  • Car-man,
    I'm really at a loss to understand the lease figures on a RRS. I've been quoted about $944 inc tax (6%) for a 30 month lease, 0 down, 12K miles based on an adjusted cap cost of $57700 plus acq fees etc of $595 (=$58295). LRFC MF is 00.355 (quite high).
    Upfront is just the first month plus $15-00 fee.

    What I don't undertsand is why the lease is generally this high given that the residual is $42210. This means depreciation is about $16,000 of the adjusted cap cost. Add to that sales tax of $3498 ($58295 x 6%) = $19,500. The difference between this figure and the total cost to me of the lease (30 x $944 = $28320) is the finance charge - ie $8820 !

    How can the finance charge be $8820 when I'm in effect financing about $20,000 ??? Even at a compounded rate of 8.5% per annum for the 30 months should mean that the finance element should be about $4000. Therefore, it seems that i'm being 'overcharged' by about $5000 !!!

    As I see it, the lease on a RRS shouldn't be more than about $800 per month (unless my figures are drastically wrong somewhere)......?
  • kyfdxkyfdx Posts: 27,643
    You aren't financing $20,000... The bank that is leasing you the car has to buy it from the dealer.. In this case, they are paying them $58,295... That is the amount you are financing...

    Actually.. to put a finer point on it.. you are financing the average of $58,295 and $42,210 (which is the value of the car when the lease is finished).

    So, your average "balance" over the life of the lease is approximately $50,250.. Multiply that by 8.52%, then again by 2.5 years... I think you'll see where it is going ..

    The finance charge is actually much greater than $8800.. I think you've overstated your sales tax... The finance charges are over $10K...

    regards,
    kyfdx
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  • Kyfdx,

    I thought that the whole point of leasing was that you only have to finance that portion of the car that you use/lease for the period that it's kept.

    I don't understand the 'average' that you state as the finace charge over the period that I lease the vehicle should cover the bank's cost of buying the vehicle and having equity tied up in the vehicle which is realised at the end of the lease.

    If I'm being asked to finance the 'entire' cap cost amount for the 2.5 year period, then is it not worth just buying the vehicle outright?

    Also, if I purchase the vehicle at the end of the lease, I've already paid the bank its finance charges for leasing me the vehicle AND, in effect, for purchasing the vehicle for me 2.5 years earlier...???!!!
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