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Saab 9-3 Lease Questions

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  • saablcpsaablcp Posts: 195
    If the one of the purposes of this forum is to provide prospective lessee's with correct information on factory sponsored programs,I sincerely wish the moderator would be a little more aggressive in correcting MISINFORMATION!In regard to your statement that dealer X is making $1,400 on lease rate let me try to clarify this point.A Saab dealer is allowed to mark up published lease rates by up to but no more than.00040 basis pts.So a published rate of .00164(current on 9-3 2.0T sedan)can be marked up to a maximum of .00204,the dealer is than paid 70% of that .00040 markup,typically no more than $500-600 ,dependent on model and gross cap cost.Far from the $1,400 you mistakenly claim.I gather from your comments regarding negotiating price that you are representative of a pct.of the buying public that is more interested in "the deal" ,meaning big rebates and inflated dealer mark-ups that can be given away,than "the price paid".Make an informed comparison between '05 models final selling prices and '06 models which start at roughly $3,500 less than correspondingly equipped models of the previous years.Yes,the "DEAL"is less impressive....the final selling prices are fractionally different.
  • saablcpsaablcp Posts: 195
    Just seems to be alot of talk on this board about clearing snow off of cars! Is this a farmers almanac/wooly bear caterpillar thing or are all these pseudo-buyers unhappy Weathermen with disposable income?
  • kyfdxkyfdx Posts: 28,657
    I guess the question I would have... Why would a dealer mark-up a money factor, that takes $1400 out of the pocket of the buyer, but only makes the dealership $600?

    Why wouldn't the dealer just raise the selling price by $1000 and use the base rate, making himself $400 extra, and saving the buyer $400 over the marked up money factor?

    Any insights on that?

    regards,
    kyfdx
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  • schoupschoup Posts: 22
    According to you a dealer can mark up the lease rate by .0004 so the fact that the dealer is marking it up .00055 in the lease outlined says what? The saab dealer is making more than the $600 you calculated, he's making about $900-$1000. I'm the pct. of the public that isn't star struck by this reduction in MSRP and realize that it is not some great deal as Saab dealers wan't to make you believe...you loose 10 feature....3 which can be replaced by buying premium pkg for $1,895...the rest not available. I'm interested in a fair deal and in not being told by you or some dealer that I should pay more for an '06 than I could pay for a base Arc last year even before employee pricing when I'm losing features.
  • Just a fact of sales ,no good deals they sit .The bottom line its only a car :)
  • :( Actually drove the saab aero today,has to be the worst ride in any car,plus there insane on there pricing structure.Is anything included in the base price
  • dhanleydhanley Posts: 1,531
    There's a lot included in a base aero.. Leather sport seats, fogs, cooled glove box, 6-speed, traction, stability, EBD, memory power seats, climate control, moonroof, cd changer, 17' wheels, xenons, etc.

    Personally, i think that's pretty good for 32K. All i'd add is cold weather.

    Can't comment on the ride, i thought the old aero was a little choppy but not too bad.

    dave
  • Back again, equipped with more information! Looking forward to everything about the car except the upfront paperwork and haggle!
    I am shopping for a 2.0T Combi. MSRP =$30,265. I was originally quoted $28,970 plus "fees" and told that the particulars of the lease program would be available later.
    Now I got them and would appreciate any input or feedback.
    The lease program as offered is $3662 (500 from Saab) so $3162 down + $434/mo for 36 months 15k miles.
    The makeup of initial payment was: First Month-$433, $2000 downpayment, $175 tax on DP, $258 license fee, $795 bank fee.
    Money factor was given to me at .00204.
    Residual values = 57% ..Question- is this % of the MSRP, sticker price, or what my price is?
    For this example, Residual = $17,251.
    The dealer explained that I would be paying only $11,013 for the 36 months ($305/m) and "with lease fee and sales tax" as described, added, the total would be $15,612.48. ($433/m)
    I am confused as if I add the $15k to the residual $17,000,I am over $32k? Is the dealer confused?
    What parts of the "fees" do they have influence over and what not? Where is my best bargaining leverage in the lease deal? In the amount of DP? I was told adding $1000 DP only brings the monthly down $20.
    I appreciate any help or tips given. In the spirit of the site, I will be sure to pass anything helpful on when I get a chance! Thanks
  • Is this a good deal for a 2006 Saab 9-3 Combi?
    Is there room for improvement?

    MSRP - $33,415
    Selling Price - $30,332
    Money Factor - .00184
    Acq Fee - $695
    Term - 24 months
    Cash Down - 1,030
    Rebate - $500
    Miles - 12,000
    Total Down - $2,500
    Payment - $329.78 (7% sales tax)
  • Hi steamboat72. So you're interested in the all new 9-3 Sport Combi, huh? What's with that name anyhow? Why doesn't Saab just call it a wagon? I guess that Sport Combi sounds cooler. The problem with making such a large down payment on a vehicle that you intend to purchase at lease-end is that down payments do nothing to reduce leased vehicles lease-end purchase prices. Sure, you will pay less interest along the way if you make a down payment, but it will not have any impact upon your car's depreciation and ultimately no impact upon its end of term purchase price. If you have an extra $2,500 to $3,000 sitting around that you want to use on this lease, you would be much better off using it to supplement your lease payment, or make a few of them than using it as a down payment.

    As far as this car's current lease program goes, if you were to lease a 2006 Saab 9-3 2.0T Sport Combi through Saab Financial Services Corp. right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00164 and 57%, respectively. The residual value for an otherwise identical lease with only 12,000 miles per year would be 1% higher.

    Car_man
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  • You're very welcome, tlabrie.

    Car_man
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  • Hey jeffepstein. It's possible that only a certain percentage of the lease money factor mark-up that the dealer wants to make on your deal goes into their pocket. Many banks take a cut of any money factor mark-up. If this is the case, why doesn't the dealer just increase the selling price of your car by 40% of the $1,400, or a little over $500. They still make out the same, but you save almost a thousand dollars over the life of your lease. Better yet, tell this dealer that you'll just lease your car from a different Saab dealer that won't mark up the money factor on you. Saab dealers are dying right now. Sales have been terrible. I highly doubt that a dealer would let you walk from a deal just because they refuse to let you lease with the base money factor. Saab prices definitely are not fixed. There is a spread of over $2,000 between this car's full MSRP and dealer invoice price. Furthermore, Saab is currently providing $500 bonus cash on all 9-3s. I think that you need to tell this dealer that you are not being given a good enough deal and will lease from another Saab dealer if they don't work with you.

    Car_man
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  • Thanks CarMan. I appreciate the tips!
    What are the aspects of the lease agreement that are most negotiable? I read Jack's post about Combi lease and yes it was only 24 months, but his $327 monthly is much more manageable than the $433 I was quoted, with less money down. I do understand that the terms were different, but its still not seeming right to me.
    Why was I quoted money factor .00204 and you quoted .00164 from Saab financial Services?
    I am not a strong negotiator but I have a strong personality :confuse: . I really like this car, want to put my family in it but need the lease scenario to work for me, not the other way around. All advice is honored and valued ! Best, Steve
  • saablcpsaablcp Posts: 195
    The money factor difference,.00204 vs..00164 is the.00040 basis pt. mark up I spoke of in an earlier post...you need to point it out to the dealer and remind him he just left a door open for any other dealer to walk through and offer you a better payment without affecting his profit margin on the actual vehicle.That being said the previous poster who spoke of a $2K.spread M.S.R.P/Invoice needs to do some homework.Totally loaded with all options including Nav.you are under $2K.margin,incl.N.E.Region advt.charges to dealer. By the way...still waiting for the specifics from Mr."Under $500 per month/no money down" '06 Aero Conv.Man!!!!!!!
  • " There are NO,I repeat NO ! ,$40,000+ European convertibles that will lease for that price with no money down ." I would say yes. Check bmw z4 thread.
  • Car_Man,

    Here is some additional information as it relates to
    the down payment ($2,480):

    *1st month payment - $326.24
    *Acq fee - $695
    *Cash down - $1,030
    *Doc fee - $198
    *Title prep - $5
    *Tags/registration - $226

    What do you think of this transaction? I have it priced as a 24 month lease, but could just as easily go with a 36. Any advantages/disadvantages?

    Is this a good deal for a 2006 Saab 9-3 Combi?
    Is there room for improvement?

    MSRP - $33,415
    Selling Price - $30,332
    Money Factor - .00184
    Acq Fee - $695
    Term - 24 months
    Cash Down - 1,030
    Rebate - $500
    Miles - 12,000
    Total Down - $2,500
    Payment - $329.78 (6% sales tax)
  • qoolqool Posts: 4
    Greetings,

    this is my first post, so be kind to a fellow newbie. From trolling both this and the 9-5 lease forums, I see people posting specific money factors and residuals.

    How did you people discover the base money factor of .00164(Nov) and 12k mi/24 mo residual of %72(past Oct)? Can I simply call Saab Financial (anyone have their number) and ask? I'm serious about leasing an '06 or '05 ($1000 rebate, if there any left) 9-3, and I don't mind doing my homework as the title suggests. Just like you, I want to walk into a dealership feeling good about spending this much money. (near-recent college grad, need nice car to offset reality of the working world, blah blah...)

    Hopefully, this will also be my first new car and first leased car ... at a fair price, of course.

    I appreciate anything I can learn from all of you.

    Rob
  • Hey steamboat72. Let's calculate what your lease payment on this car should be like using Saab's actual lease program and the prices that you were quoted. According to my calculations, if you were to lease a 2006 Saab 9-3 2.0T SportCombi with an MSRP of $30,265 and a selling price of $28,970 through Saab Financial Services Corp. right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $402. I based this payment on the assumption that you are not going to make a capitalized cost reduction (aka down payment) because making one is not in your best interest. 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 Saab would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all. If you use the $500 bonus cash that Saab is providing to reduce this car's cap cost, the payment would drop to around $387. If you were to roll Saab's $595 acquisition fee into your car's cap cost, this would be about a wash and result in a monthly payment of around $405. If you were to make the $2,000 down payment on this car that the dealer asked for, it would drop the monthly payment to around $346 before tax. I used Saab's current buy rate lease money factor of .00164 to arrive at these payments. If you pay a security deposit, you should be able to take advantage of this factor. The two things that you need to do in order to assure that you are getting a good lease on this car are negotiate a low selling price and make sure that the dealer is using Saab's buy rate money factor to calculate your monthly payment.

    Car_man
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  • Hi jack00. The selling price that you were quoted on this car looks reasonable to me. The money factor and acquisition fee that you are being charged are a little high though. For consumers who pay a security deposit, Saab's buy rate lease money factor for a 24 month lease of a 2006 9-3 2.0T SportCombi is .00164. Saab will waive its security deposit requirement in exchange for a slight increase in vehicles' money factors. That probably partially explains why the money factor that you were quoted is higher, but there may be some mark-up going on there as well. I personally would rather pay a security deposit that I am going to get back than throw away money on a higher lease payment. Saab Financial Services Corp.'s current base lease acquisition fee is $595 in most states. It is slightly higher than this in a few areas though, such as New York and New Jersey where its base acquisition fee is $695. There may or may not be some mark-up going on with your acquisition fee, depending upon what state you are in.

    The main thing that I would change about this deal if I was leasing this car is the 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 SportCombi would be exactly the same, regardless of whether you had put $1,000 down, or had made absolutely no down payment at all.

    Car_man
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  • You're welcome Steve. Vehicles' selling prices are the main negotiable aspect of leases. The only other thing that you can negotiate is you can make sure that the dealer that you are working with is using your vehicle's buy rate lease money factor to calculate its lease payment. While dealers do not have the authority to lower banks' published lease money factors, they are often allowed to mark them up to add additional back-end profit to deals. Pay a security deposit, and absolutely insist that the dealer use the .00164 factor to calculate your car's lease payment.

    Car_man
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  • Greetings Rob. Unfortunately, Saab Financial Services will not provide you with information on vehicles' current lease programs if you call them directly. They will tell you to speak with your local dealer. You should be able to find out what the lease programs are like for the cars that you are interested in through by visiting the lease discussions in this forum through. Either some other community member who has recently leased one of the vehicles that you are interested in, or I can share this information with you.

    Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

    Let me know if you have any other questions.

    Car_man
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  • qoolqool Posts: 4
    Thanks Car_man. The article on calculating lease payments was especially helpful.

    So I'm in contact with a Saab dealer, and the purchase price seems fair to me, but they don't have a specific color I'd like. I've been avoiding specifics to keep the focus on the price.

    Do you have an idea what it might cost a dealer to trade with another dealer or manufacturer for a specific color 9-3? I'm thinking it would be around the ballpark of $100-$300 if the dealer had to pay to transport it. (I shipped my car across California for $300 a year ago)

    The nocturne and fusion blues look awesome!

    Rob
  • saablcpsaablcp Posts: 195
    A Sport Combi is the same thing as an Avant.....as if that would tell you anything!!!!LOL!!!!
  • saablcpsaablcp Posts: 195
    I stand PARTIALLY corrected... partially because the Z-4 that was quoted was UNDER $40k. but only by a few hundred dollars.That being said the Gentleman who prompted my statement said he lived in Northern Illinois. He is more than welcome to visit his local BMW dealer for a great deal on a small,2 seat,R.W.D.sportster that he MIGHT be able to take out of the garage in 6 months,when Chicago thaws out!!!
  • dhanleydhanley Posts: 1,531
    A z4 will give you 9 mos in N illinois, with winter tires, year-round fun.
  • qoolqool Posts: 4
    Hello again,

    Has anyone on this forum explored the up-front single payment lease option? Details are limited on the net, but from what I understand you simply pay the depreciation of the car and no finance fee, since you are not borrowing the depreciation over the term of the lease. Does that sound correct?

    In numbers, a money factor of .00164 translates into an annual interest rate of 3.936%, which you would be saving per year. Or, if you opted to go with the traditional monthly lease, you would have to be able to earn greater than 3.936% from investment money to cancel out Saab Financial's finance fee.

    Am I reasoning about this correctly? Anyone know of some huge downsides to the up-front single payment lease?

    Thanks people.
  • kyfdxkyfdx Posts: 28,657
    Even though you make a single lease payment, that doesn't cover the cost of the entire vehicle, so you still have finance charges..

    If the bank buys the vehicle you are leasing from the dealership for $30K, and you pay $15K to lease it for 3 years.. ..there are still finance charges to pay on the residual amount (assume $17K).... By paying all of the depreciation and finance charges upfront, the bank will usually charge a reduced finance rate.. and that is where the savings occur.. but, it is nowhere close to the entire finance charges...

    regards,
    kyfdx
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  • qoolqool Posts: 4
    Ahh. *light bulb*

    Thank You, kyfdx.
    Rob
  • gperrgperr Posts: 126
    Car_man,

    Hi. Can you please provide the current MF and Res for 2006 Saab 9-3 2.0T, 36m, 10 & 12k miles.

    Also can you please provide the standard Saab lease acq fee.

    Does the $500 cash incentive apply to 2.0T as well?

    A friend received a solicitation from GM saying they would pay up to $2000 toward any current lease he is in if he wants out early on any lease he currently has. It does not even say the current lease has to be a GM lease. Is this the standard we'll just roll it in offer, or is GM really making this offer?

    thanks

    gperr
  • Trying to tie-down the November MF & Residuals for a 2006 2.0T Sedan.

    MF seems to be .00164, regardless of 36 / 24 month term. Correct???

    Residuals for would be:
    24/12k
    24/15k

    36/12k
    36/15k

    I assume that residuals would differ from the combi and convertible . . . lots of discussion on these models but not the base 2.0T.

    I need to close a lease prior to month end as my current car is due back on Nov 29. Your assistance would be appreciated.

    Thanks,
    Michael
This discussion has been closed.