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Land Rover Range Rover Sport Lease Questions

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  • The idea of leasing is to just pay for the depreciation that you use over the lease term.. The bank has to put up the entire purchase price, so you are paying finance charges on the entire vehicle for the time that you are using it.

    The bank can recover the residual value at the end of the lease by selling the vehicle, but the time value of their money is the same over the period of the lease.. It is no different than if you were purchasing the car, in that respect..

    Consider the lease as a loan on the vehicle.. At the start of the loan, you are borrowing $58,XXX.... and, at the end of the 30 months, you still owe $42,XXX.... You turn the car back into the bank...to pay off the loan.. But, the loan balance was between $58,XXX and $42,XXX the entire time that you leased the car.. That is the amount that you are paying finance charges on...

    All that said... the lease program on the Range Rover is not very good... I think if I were interested in this vehicle, I'd buy it and finance at a lower rate than the lease equivalent of 8.2%.

    regards,
    kyfdx
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    Moderator - Prices Paid, Lease Questions, SUVs

  • hvfhvf Posts: 12
    Hi Car man could you check this :

    RRS HSE 06
    Luxury package + bluetooth ( no satelite radio, no DVD )
    MSRP 60150
    Sell price 57500
    LEV 67%
    MFSR 0.00315
    bank fee 595
    COD 2710
    monthly 903.39

    can we do better
    by the way on the message about the LR3 HSE selling price on that is 53208

    Thanks
  • hvfhvf Posts: 12
    term 30 mts
    mileage 15000 miles/yr
  • Kydfx,
    Does the Depreciation percentage figure, and hence the basis for lease calculations, work from the MSRP or from the adjusted (negotiated) cap cost?

    If I get better discount off the MSRP, this means my monthly payments will be lower right, as I'm now 'financing' a lower amount? Or does a bigger discount simply mean that the Depreciation figure also 'reduces'?
  • The residual percentage is always figured from MSRP.. Which makes sense... no matter what selling price you negotiate, high or low... it isn't going to affect the actual value of that car at the end of the lease term...

    This is a good thing... Every dollar that you save in negotiation goes straight to your bottom line, as a dollar saved in depreciation... and that is the main part of the savings.. But, you'll save some in finance charges, because your cap cost will also be lower..

    Example: Joe Blow negotiates a $75,000 selling price for his RR Sport... on a 3yr lease with a money factor of .0030... John Doe leases the same car, for the same term, but negotiates a selling price of $74,000... John Doe's lease payment will be $30.78 per month lower than Joe Blow.

    $27.78 of that is lower depreciation ($1000/36pymts).. The other $3.00 is due to a lower amount "financed" ($1000 X .0030).

    Leasing is no different from buying.. Every dollar you lower the selling price, goes right into your pocket..

    regards,
    kyfdx
    Host-Prices Paid Forums

    Moderator - Prices Paid, Lease Questions, SUVs

  • hvfhvf Posts: 12
    Could someone tell me if this is an aceptable offer, I thought that selling price could be lower
    RRS HSE 06
    Luxury package + bluetooth ( no satelite radio, no DVD )
    MSRP 60150
    Sell price 57500
    LEV 67%
    MFSR 0.00315
    bank fee 595
    COD 2710
    monthly 903.39
    30 months / 15,000 miles / year

    can we do better
    by the way on the message about the LR3 HSE selling price on that is 53208

    Thanks
  • hvfhvf Posts: 12
    Could someone tell me if this is an aceptable offer, I thought that selling price could be lower
    RRS HSE 06
    Luxury package + bluetooth ( no satelite radio, no DVD )
    MSRP 60150
    Sell price 57500
    LEV 67%
    MFSR 0.00315
    bank fee 595
    COD 2710
    monthly 903.39
    30 months / 15,000 miles / year

    can we do better ?


    Thanks
  • Hey hvf. I see that you are interested in a Range Rover Sport as well. I love this truck, but it is unbelievably expensive, both in terms of its price and terrible lease program. Right off the bat I can tell you that the lease money factor that you were quoted is a little high. You never mentioned how long you are leasing this truck for, but Land Rover Capital Group's buy rate lease money factors for the 2006 Range Rover Sport HSE vary from .00304 for a 24 month lease to .00260 for a 36 month lease. The selling price that you were quoted for this truck looks reasonable to me though. You are being given around a $2,600 discount on it. There's still a decent chunk of change left for the dealer, but I would not be surprised if that is what the market dictates for the Range Rover Sport right now.

    Car_man
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  • I was thinking of leasing a RRS with lux package, bluetooth, and sat radio. If I want to get a 24 month lease at 10 k miles what should my cost be? I would like to pay everything upfront. I should get discounted for that I hope.
  • Hi socalrover. Like most banks, Land Rover Capital Group provides consumers with a reduction in the interest rate that they have to pay for pre-paid leases. I believe that its specific reduction for 24 month leases is .00041, which equates to an interest rate reduction of slightly less than 1%.

    You never mentioned the selling price or MSRP of the Range Rover Sport 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 work up a sample lease payment on the truck that you are interested in for you if you let me know what these numbers are.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • Well, if SocalRover does not reply, I'd love to give you some numbers to run by you:

    Purchase price, $58,050 (not including taxes, etc..)
    Down payment: $5000
    lease term: 60 months (48 month as an alternate)
    Mileage: standard 15,000/yr

    Basically, I know I can afford something like a Toyota Tundra on a 60 month purchase (not a lease), so I'm wondering if leasing a RRS for a similar term is affordable (as viewed on a monthly payment basis).

    Regards,

    NW
  • slykmrslykmr Posts: 2
    Looking at leasing a new RRS. My question is that if i put money down in the beginning isn't that the same as paying that much additional throughout the duration of the lease. Lets say that with 0 down the payment is 1115 per month. Yet with 5000 down the payment is roughly 200 lower per month @ 918. All these #'s are based on a 30 month 15k/year lease, 63000 msrp, .00305 rate. My thinking that the 200 per month saved times 30 months is $6000. Therefore an up front savings of $1000. Though at this point you can figure in the time value of money. Please set me straight if i am on the wrong page.
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,890
    Any money you put down on the lease reduces the cap cost by the same amount, and will result in a correspondingly lower payment... In your example, the "extra" savings of not paying finance charges on that $5000 equals about $15/mo.. Or, around $450 over the life of the lease... and, as you stated, you have to balance that against the earnings on that money if you had kept it. So, the actual savings is pretty small...

    You really shouldn't make any downpayment on a lease, though.. If something were to happen to the vehicle early in the lease term (accident or theft), resulting in a total loss, you won't get any of that downpayment money back... A $5000 downpayment on a car that you only lease for 3-4 months would make for a pretty high monthly cost..

    regards,
    kyfdx
    Host-Prices Paid Forums

    Moderator - Prices Paid, Lease Questions, SUVs

  • kyfdx,

    I would like to pay the taxes upfront to keep the monthly payment down. $999 looks better to the wife than $1200. Does the above also apply here?
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,890
    In my opinion, it applies to any amount paid upfront, other than the first payment and security deposit...

    But, overall this risk, while real, is fairly low... I understand exactly what you mean about the how the payment looks to your spouse...

    You have to do what works for you... ;)

    regards,
    kyfdx
    Host-Prices Paid Forums

    Moderator - Prices Paid, Lease Questions, SUVs

  • Our leasing programs just changed today and the 30 month lease is no longer the best deal. You are going to have to rework everything to find the sweet spot. Based on our preliminary work the 39 month lease seems to work out the best now.
  • slykmrslykmr Posts: 2
    Due to the money factor or what? The drop in residual from a 30 month lease to a 36 month lease was some 14% or some ridiculous number.
  • The 30 month lease residual dropped several points from the last program and the money factors are up as well.
  • jbratxjbratx Posts: 40
    What is a good credit score (FICO) to have in order to get a great deal on a lease for a 2006 RRS HSE? When I say great deal, I mean some of the deals that have been outlined in this forum.
  • I just returned from a dealership that offered:
    RR Sport
    MSRP $58K
    $3000 down
    30 months/10K miles
    $822.00 plus tax
    Curious to see if that a good deal..
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