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Saab 9-7X Lease Questions

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Comments

  • asr515asr515 Posts: 30
    I just wanted to say Thanks Car_man. I took this deal. They also gave me exactly what I wanted for my trade. I'm finally cruising around in my new 9-7x! AND surprising, I didn't feel like I needed to shower after leaving the dealership!!

    Thanks to you and Edmunds.com for making me an informed buyer!

    Amy
  • huma2huma2 Posts: 24
    car man any idea if the incentives will get better as the summer goes on b/c of the poor sales gm is having. thanks for any thoughts on this matter
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    You're very welcome, Amy. Congratulations on your new truck. Enjoy!

    Car_man
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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi huma2. It is difficult to say what manufacturers' future incentives programs will be like. Saab's current lease program is scheduled to run through September 5th. I don't expect its lease program on the 2006 9-7X to get much better than it is now, but only time will tell what will happen for certain.

    Car_man
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    Prices Paid Forum
  • sbr3500sbr3500 Posts: 6
    I currently have a Saab 9-3 with 5 payments left at $332.

    The dealer said Saab will pull me ahead on 3 of those payments and the dealer will eat the other 2. I was told I also get some loyalty credits, etc.

    2006 9-7X 4.1
    Has NAVIGATION & DVD (does not have the touring package) MSRP $42,535

    27 month lease (71% residual)
    $1264 due at signing ($177 Registration, $275 dealer fee, $670 bank fee, and $142 sales tax) my sales guy told me they are waiving 1st month’s payment and no security)

    Monthly payment $440

    He said he can put me in a 5.3 with Navigation for $465 and a 5.3 with Navigation and DVD for $479.

    Seems to me these are all great deals? I know many who have bought/leased from this dealer and felt they were honest. Please advise if these are bad/decent/great deals.

    Thanks a lot.
  • I just leased a 9-7X yesterday. That does sound like a good deal, although you should find out some other important numbers: The actual selling price, and the money factor. Tell him to put together a contract and fax it to you before you go to his store. It's MUCH easier to study a contract at home than it is at a car dealership.

    A couple of things, though: The bank fee seems high. I (and most people) are paying a $595 bank/acquisition fee. And a $275 dealer fee? That's a load of crap, trust me.
  • sbr3500sbr3500 Posts: 6
    Hey Mister mark,

    What did you pay for your lease and what did the car have on it?
  • Here's what I got:

    27-month lease on a 2006 9-7X 5.3i with Navigation

    MSRP: $43,235

    Negotiated sales price: $40,234 (the invoice price)

    Residual value: $30,696.85 (71% of MSRP)

    Money factor: .00154 (3.7% APR)

    $750 rebate

    10,000 miles per year (I chose this lower number to get a higher residual value. I work at home and never drive more than this in a year.)

    No down payment

    No security deposit

    No disposition fee

    First month's payment waived (a.k.a. A free month!)

    Drive-off cost: $66.88. This is made up of the sales tax on the rebate ($58.13) plus the California tire fee ($8.75). They said this was the lowest drive-off cost they've ever seen at their store.

    Registration ($326), acquisition fee ($595), and document fee ($45) were included in the total cost of the lease.

    Monthly payment: $510.27 (again, the first month's payment was waived, which is great)

    My only concerns about the lease I signed:

    1. The salesperson/assistant manager/finance manager cannot explain how my finance charge was calculated other than to say, "I entered it in the computer and that's what I got." She suggested I call GMAC to have it explained. I did that, but they said they couldn't help me until my contract is "in their system", which will take 3-4 weeks. It's not a big deal, really. They say I'm paying 3.7% APR; I see it as being close to 3.8%. The difference amounts to about $3 extra per month.

    2. Although the salesperson/assistant manager/finance manager said I was not being charged sales tax on the registration, I'm sure I am. I don't see how I couldn't be. The registration fee, acquisition fee, and document fee were added to the price of the car, and in turn, to the amount of depreciation that I have to pay over the 27-month lease. When you make lease payments, every payment is taxed. I called the DMV to ask about the legitimacy of this. They said (with a regrettable sigh), "Yeah, they can do that." This amounts to about $2 extra per month.

    Considering, however, that if I had paid the registration fee, acquisition fee, and document fee up-front, that would have been $966 more out of my pocket. Interest rates are decent enough that makes keeping the money in a bank account nearly negates the extra few dollars per month that I believe I'm paying.

    I would still say that this was a decent experience and transaction. The salesperson was incredibly patient and helpful over the 2-day period that I took to work this out. We must have exchanged at least 30 emails and several phone calls before coming to an agreement (I had lots of questions), and even then I asked to have a copy of the agreement faxed to me before I came to their store. You probably won't be surprised to hear that some dealers refused to even talk with me about the details of a lease unless I came to see them in person, and some ignored my emails entirely.
  • sbr3500sbr3500 Posts: 6
    Sounds like you got basically the same deal I did. Had you paid the 966 up front, your payment would have almost the same as the $465 i was quoted on that car. I chose the smaller engine with nav and dvd for $440. I drove my other saab 8,000 miles over 31 months. I take the train from CT to NYC everyday. It's basically a train car and I use it on the weekend. Sounds like we both did well.
  • Yeah, I would have gone for the smaller engine too, but apparently, there were no more '06 black/black 4.2i with navigation anywhere to be found. I'm happy with what I got.

    Did you calculate your rent charge to the penny as I did? (I know I'm more interested in precision than a lot of people. I think I drove my salesperson nuts.)
  • sbr3500sbr3500 Posts: 6
    Picked up the car last night (black with Tan).

    The rent charge was 3.7% and the car price was just a hair over $39,000 (I think). I called my salesman (same one as other Saab I had) and told him 2 things: 1.) sharpen the pencil on the numbers as tight as possible so I don't get tempted to call other Saab dealers in the area & 2.) If I don't like the deal I am going to wait until my lease is up and drive everything before making a decision(MDX, Tourag, Etc.) I had 5 payments left and the dealer paid the last 2 and Saab pulled ahead on the other 3.

    After that, I felt confident I was getting a good deal based on information on the internet and I trust the guy. My sales guy spent 10 minutes on this deal. I am in Greenwich, CT ... they got the car from a dealer in Mass ... was the only left in the northeast.

    It's a cool car, I like it so far. I drove it 1.2 miles to the train this morning!
  • Sounds good.

    Yeah, I was told the rent charge was 3.7% too, but the only way to really know what you got is to calculate it yourself. It's a little complicated, but certainly doable.

    Here's the formula to use according to leaseguide.com (the info can be found at http://www.leaseguide.com/lease08.htm):

    Rent Charge ÷ ( (Adjusted Cap Cost + Residual) x Term ) = Money Factor

    To convert the money factor into your interest rate, multiply the money factor by 2400.

    This is the only way to make sure their math is correct. If you calculate it, let me know if it looks correct to you. Mine appears to be more like 3.79%.

    If you need help, let me know. ;)
  • sbr3500sbr3500 Posts: 6
    I signed the lease on the dotted line. I don't live in the past and Math is not my specialty. Do you really care at this point knowing if it was exactly 3.7 or 3.79?

    What I care about is that I forget to ask of the NAV replaces the 6 disc DC and I think the car only has 1 CD ... Am I wrong??? ... Need to play with it tonight on my 1.2 mile drive home.
  • Well, I do care about my money, so if I'm told something is going to cost a certain amount and it turns out that there were hidden charges, then yeah, it would bother me.

    I'm not "living in the past". I just like to understand the contracts I sign, not only for my own benefit, but so I can help others in the future.

    Even the finance manager told me that she didn't understand how the lease was put together! Something's wrong with that. I think a business should be able to explain their charges.

    About your question, yeah, the NAV can only hold 1 CD at a time. The NAV replaces the 6-disc player.
  • sbr3500sbr3500 Posts: 6
    I hope I didn't appear confrontational, not my intent. I was simply focused on the $440 number for 27 months ... after that, didn't really care how they got to the number.
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,898
    ...is just a rough calculation... It doesn't come out exactly the same... Generally, when converting from the money factor and multiplying by 2400, you will overstate the interest rate charged...

    The conversion assumes that the same amount is subject to interest over the life of the lease, but if it were a true loan, the balance would be higher in the early part of the lease, and lower later...

    Of course, leases don't work exactly like that, so the conversion isn't exact.

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • Nah, I didn't take it as confrontational at all. I just wanted to fully explain my reasoning.

    Most people do focus on the monthly payment. It's understandable.
  • Thanks, kyfdx. I really appreciate your speaking up.

    So, is there any way to really know what your rent charge should be on a lease? And if so, how do you calculate it?

    I was told my interest rate would be 3.7%, so I assumed the money factor would be 3.7 ÷ 2400 = .0015417. If I wanted to know the exact rent charge ahead of time, should I have asked them for the money factor instead?
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,898
    I'm not really sure exactly how it works with GM...

    Possibly, there is a formula that takes the cap cost and residual, and applies that exact interest rate over the life of the lease... Just as if you were doing a balloon note... (this is my guess)..

    So, it is possible that they add up the payments calculated this way, and divide by the number of months to get an average payment...

    In other words, you may not be able to calculate it using a simple formula, like a money factor..

    Sorry I can't be of more help...

    Moderator - Prices Paid, Lease Questions, SUVs

  • No problem. I really appreciate your responses. Just knowing that there's more than one way to calculate it and that each company might do it a little differently makes me feel better about my situation.

    Since the interest rate I calculated on my lease was so close to what they told me it would be, I'm sure there's just some little quirk about GM leases that causes them to arrive at a different number from mine.
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