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Land Rover LR2 Lease Questions

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Comments

  • bmk007bmk007 Posts: 27
    I dont know what the 36 mo lease prices are.

    You 24 mo deal is a little better than mine in total when you factor in everything.

    24 mo. lease
    10,500 miles/year
    $340 per month
    $3995 down
    Blue with tan interior
    Cold climate & lighting packages
  • stonefoxxstonefoxx Posts: 14
    I just came from the dealer in manhattan, I test drove the lr2 and it was great- Hands down the best car in the class even rivals my X5-

    For a 24mo lease, They had blue and black, white ect. 10.5k miles-nav,tech pkg,cc pkg,lighting pkg, most of which is standard I believe except nav. I was quoted invoice price 37,200 - 4839 due on delivery( taxes inculded) 468.00 per month, Can I get better?
  • star8star8 Posts: 8
    The packages you are stating are not standard.
    You have the option of:
    Lighting Package
    Technology Package
    Cold Climate Package

    The more packages you add the more expensive you lease will be.

    I just took the Cold Climate Package because its cold here. I don't need navigation because its pretty pointless for me, and the lighting package isn't a big deal either. I want the lr2 so I'm trying to keep the price low.

    I got quoted 451 with 1100 due at signing for just the cold climate package. So I dunno. You have to figure in your down payment with the overall. That's an extra $200 per month. You're look at $668. PLus taxes if they aren't already included in the 468 price. Does the 4839 include your first month?
  • british_roverbritish_rover Posts: 8,476
    You are at invoice what do you expect Manhattan to lose money selling you the car?

    There are no incentives on the LR2 any price below invoice is a true loser.
  • stonefoxxstonefoxx Posts: 14
    yes it includes the 1st month. can some one explain this: Money factor is .00193 I am not sure what that is or means is that a good money factor?
    Residual % is .67 res amount is 27.034.50 I assume that's what I can buy the car for at lease end?

    Any help would be greatly appreciated.

    Thank you
  • star8star8 Posts: 8
    I'm not sure what money factor is either.. But yes, residual is how much the car is worth at the end of the lease.
  • stonefoxxstonefoxx Posts: 14
    Down Payment 4839.00 + 486.00 per month x 24 = 16503.00
    Insurence est. 2200 per year x 2 = 4400.00
    GAS est if it stay in this range 2k per year 4000.00

    Parking 350 per month 8400.00
    GRAND TOTAL: 33,303.00
    wow- taxi!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    congratulations on getting your new LR2, k8y. I'm glad to hear that you had such a good sales experience. You definitely should stop by the new Edmunds.com Dealer Ratings & Reviews section to share your thoughts on the dealer that you worked with with an even wider audience.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi stonefoxx. Money factors are used to calculate the interest portion of lease payments. You can convert a vehicle's money factor into an approximate interest rate equivalent by multiplying it by 2400. So a money factor of .00193 is equivalent to an interest rate of around 4.63%, which is pretty good.

    The .00193 money factor that you were quoted is right in line with Land Rover Capital's buy rate for a 24 month lease of an '08 LR3 without the Tech package. This is a good thing because it means that the dealer you are working with is not trying to mark your truck's factor up to add additional hidden profit to your deal.

    If you end up going with this deal, make sure to stop by the new Edmunds.com Dealer Ratings & Reviews section of this site to share your thoughts on the dealer with other consumers.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • First off I would like to thank everyone on this board for all your help and guidence it was a great help to me and my family in the decision making process of leasing a new car. so for that I am grateful to you all, Thank you.

    I went with the BLK on BLK , NAV pkg, Lighting pkg, Cold Climate pkg.

    4800.00 down includes, tax,title licence, registration, 1st month payment ect...
    469.00 a month for 24 months 12k miles per year. .15 over that. This was the best deal I could get for talking to 4 dealers in the tristate area. So I am comfortable with it.

    I will post another review once I put some miles on it.

    Thanks again-

    Mr. Foxx
  • mcarlmcarl Posts: 4
    I was at the local Rover dealership this past weekend ready to lease a LR2. I ended up walking away from the deal b/c i felt like I was getting hosed. I was looking at a LR2 with a MSRP of $35,400. Lease terms as follows: Did anyone else lease one and if so what are your terms. The car was great and I want to counter but would like to know the limits. The payment doen't bother me, I don't want to come to the table with $4 grand after fees, registration and down payment.

    $420 per month incl. Taxes
    24 or 30 months
    $3,000 down payment (plus and additional $1,000 for regisatration, 1st month & fees)

    Thanks for your help
  • I went with the BLK on BLK , NAV pkg, Lighting pkg, Cold Climate pkg.

    4800.00 down includes, tax,title licence, registration, 1st month payment ect...
    469.00 a month for 24 months 12k miles per year. .15 over that. This was the best deal I could get for talking to 4 dealers in the tristate area. So I am comfortable with it.

    I will post another review once I put some miles on it.

    Thanks again-

    Mr. Foxx
  • mcarlmcarl Posts: 4
    Does anyone have an idea how X-Plan pricing works. Are there set lease packages for each eligable vehicle (which is what GM's is). Can you negotiate on top of X-plan. In theory I should get the same deal from all Rover dealers in my area. Thanks
  • That sounds like a good deal. For the exact same package, I was quoted yesterday: $3605 down and $635.53 a month for 24 months at 15k miles. This includes all taxes (CT) and fees. Even with the extra monthly mileage, this seems much higher than your deal. The purchase price was $37,950 (includes fees but not tax). Which dealers did you use?
  • Hi All,
    My wife and I are considering leasing or buying an LR2 (Cold Pack only, we live in Mass) but I am having trouble finding lease info even on the Land Rover website, but no real details so I can't estimate lease payments.

    Does anyone know where I can find the residuals and money factors for an LR2? Maybe buried on some Ford website? I want to be sure I have a true Land Rover source before I go into the dealership.

    I've seen postings here for $469/month but that was with $4800 down which we are uncomfortable with. Then others have posted $600 range lease payments which to me defeats the point of a lease. I can buy it over 72 months for $500/month so why bother with the lease. To me, $3000 down plus tax and title for ~$400/month is fine. For example, the BMW X3 is offering $409 for $3300 down, 10k yr. Thats a reasonable lease program.

    thoughts?
    thanks so much.
  • british_roverbritish_rover Posts: 8,476
    The LR2 does not lease well. There is ZERO lease support behind the car and yes a 5,000 dollar more expensive X3 leases for less then a LR2. I have complained about it to Land Rover plenty but they do not have the ability and/or interest in offering a competitive Leasing Program on the LR2 at this time. It costs BMW 9,000 dollars or so to buy the lease down on the X3 to that level and Land Rover doesn't have the volume to support that.

    You are better off taking the 4.9 for 60 months that Land Rover is offering on the LR2 and put down 4,000-5,000 dollars.
  • Thanks British Rover. We decided to just buy it outright. They have located our color choice. Here is our deal.

    LR2 Stornoway Grey, Ebony Interior

    $33,400 (cold pack only)
    $2000 cash down
    $1500 equity left from trade-in (a fair price)
    $295 doc fee
    $130 registration
    $720 mass tax
    ---------
    approx: 7% over 72 months = approx: $520/month

    I think its good deal. Thoughts?

    BTW, were working with Metro West Land Rover in Sudbury Massachusetts. They have been great!

    K.
  • british_roverbritish_rover Posts: 8,476
    Yeah you did good I know the guys up in Sudbury and they are good people.

    Good price for the car and the 7 percent for 72 months is a fair finance deal too.
  • So I am looking to lease the LR2.

    The best lease deal I've been offered is detailed below - it's the fees that are out of hand.

    LR2 - Blue on Tan - Cold Climate.

    MSRP = base 33,985 +700 cold climate +715 destination = $35,400

    Selling price (gross cap cost) = $32,500
    Cap Cost Redeuction = $2,500
    Net Cap Cost = $30,000

    24 months
    RV = .71
    MF = .00193 (very good)

    Pretax = $309.16 per month
    Excise tax = $40.71
    Sales Tax = $17.49
    Month Pay = $367.36

    For the most part, that is all well and fine, although it bugs me that Land Rover wants to roll the Excise Tax into my monthly payments AND TAX ME ON THE EXCISE TAX!

    Sounds like pure dealer/finance arm profit crap.

    The real problem is that because the dealer/sales drone knows I know all the ins and outs of leasing - plus all the numbers - I feel that they are just layering on BULLS*&* fees in order to make some money. To wit:

    Bank Fee of $595.00 So LR Finance can punch a few numbers into a computer?

    Doc Fee of $249.00 Sure, go photocopy the title flunky.

    And most ergregiosulsy, taxing, at 5% Massachusetts tax, not only the cap cost reduction of $2,500 which is fine, BUT THE BANK FEE OF $595????

    They are trying to charge me tax on the excise tax PLUS tax on a fee to the finance company???

    I've already got them to get rid of the $300 advertising fee crap (sure let me pay you to sell me a car).

    And the dealer/sales drone have the gaul to tell me that they are losing money on the deal. HAHAHAHAHAHAHA!

    I know I should tell them to shove it but I kinda like the game.

    Any thoughts regarding the fees/extortions, please pipe in.

    Bateman
  • british_roverbritish_rover Posts: 8,476
    I will try not to insult you in this post but I am sorely tempted.

    Dealers don't make any money on Tax that money is the states money. I have only had one person blow their top about the tax on ESCROWING excise/property tax. If you don't believe that the state requires that to be taxed then please call someone in your state treasurer's office and they will tell you that it MUST be. Somewhere I have a letter from the CT government confirming this I will see if I can find it.

    The bank fee is part of the cap cost so it must be taxed just like the doc fee. The majority of your complaints are just stupid TAXES go to the state. Neither Land Rover nor the dealer gets any profit from collecting taxes. If they do over collect for some reason then when the paperwork is submitted to the RMV a refund check will be cut back to you.

    All leases have acquisition fees attached to them. Sometimes they are called bank fees. In fact $595 is fairly reasonable for a bank fee. Last time I did a Chase lease the bank fee was $995. A 249 doc fee is very reasonable. Some of the dealers in my area charge 349 or more.

    As to your complaint that they are not losing money well they are at least as far as the sales department is concerned. The invoice price of your car is $32,578. That 300 dollar advertising fee is a legitimate fee that Land Rover charges all the dealerships in that market. You have a Cap cost of 32,500 listed so they are losing 78 dollars on the front end to make the sale. If that 32,500 cap cost includes the 595 acquisition fee then they are losing 673 dollars.

    So to sum up the 595 fee goes to Land Rover directly and is not being marked up a penny by the dealer.

    You can debate wither the doc fee is pure profit or not but even if it is it doesn't cover the 673 dollar loss on the car.

    And finally ALL TAXES GO TO THE STATE AND NOT DO THE DEALER OR LAND ROVER

    Why is that so hard for so called "leasing experts" to understand. Since you are such an expert why don't you calculate out what you would pay in excise tax on the LR2 if it was not escrowed into the lease. I guarantee that it is cheaper to have the excise tax escrowed into the lease. I have done the math for several different people and every time you come out ahead by including it in the lease.

    Over a two year lease you are only paying $977.04 in excise tax. If you paid it directly on a nearly 35,000 dollar vehicle I know Mass would charge you more. Plus this is more convenient since you never get a tax bill from the state. Also having the tax built into the lease saves you from getting a tax bill months and months after your lease ends. People hate when they have to pay tax on a car that they no longer have.

    You are complaining about a 5 percent tax on 40 bucks. That is only 2 bucks a month. :surprise: That is only half a percent of your total lease payment.
  • Congratulations on getting a good deal on your new LR2, Mr. Foxx. Make sure to stop by the new Edmunds.com Dealer Ratings & Reviews area to share your thoughts on your recent dealer experience with others. Enjoy your new truck :shades: .

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi mcarl. Ford's X-Plan provides a set, attractive price on the vehicle that you are interested in. If you want to lease, this price would be used as your vehicle's capitalized cost. The dealer would then use Land Rover Capital Group's lease program to calculate your monthly payment. I can provide you with information on what this trucks' current lease money factor and residual value are like if you want to double check the numbers that your dealer is using. I just need you to provide me with the exact trim level that you want, how long you want to lease for, and what mileage allowance you need.

    The X-Plan price should be better than any price that you would be able to negotiate on your own and you probably will not be able to negotiate an additional discount on top of it. You are correct, in theory if you go through the X-Plan the deals should be the same at all of the Land Rover dealers in your area.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • jax10jax10 Posts: 36
    :confuse: :confuse: I know this is a forum for leasing, but, no one seems to be on the buying forum...

    british rover,
    Looked at LR2, salesman told me, "nothing to talk about on the price, it is on the sticker"...said something about 5.9 interest...I told him I had read on internet some people were buying them for 500 above invoice,....he did NOT mention Xplan pricing, whatever that is?? Told him I was going to sell my Tahoe myself.....I have a 2005 Chev. Tahoe LT, EXCELLENT CONDITION, FULLY loaded, everything EXCEPT navigation...bucket seats, third row, DVD entertainment pkg, towing pkg.,...38,700 miles, I owe too much money on it...don't think I can sell it for what it is worth...should I go to another salesman, ask for a deal figured with trade-in & also one figured with no trade-in??? Would the sales tax money from the trade-in make up for the cheaper price they will give me...may not can sell it myself unless I lose alot of money, but then again, they may not give me near enough for it...??? How do I get the best deal??? :confuse: Wait longer to get a better deal on the price of the LR2? When did this model come out, April? When does the next one come out? :confuse:
    Just wanted the base, none of the option pkgs., they are too expensive...don't need heated seats, etc.. Thanks.
  • When the LR2 was first released I went to the dealer I had leased a Freelander from and asked for a lease price for the LR2 loaded, $39,950. With the minimum down, the lease price at 2 years and 12K miles was about $670, but because I was a past customer they offered me $635/month. Since then, nothing has changed.

    From all the posts I have read since that time, no one has gotten a better deal and in fact many people writing into this forum are still confused about lease prices from Land Rover, and the fact that there is nothing on their website and no incentives doesn't help.
    I am also surprised at how many people want to put down thousands more than necessary in order to lower their monthly payment? Don't they know this is a salesman trick; all you are doing is paying your high monthly payment in advance and artificially lowering your monthly payment; it is still the same deal only better for them because they get more of your money up front.

    I was in the market for an LR2 but I after I heard the lease price, and the purchase deal, I had to back out as it was all too rich for my blood. It is a shame so many people like this car and want to perceive it as an economical, entry level Land Rover, (as it use to be) but it clearly isn't anymore.

    I understand the frustration when you shop similar spec cars, like the BMW X3, and they have much lower, more attractive lease rates and incentives. This makes Land Rover look very overpriced and makes it look like they are not interested in volume sales or making profit through volume or even being competitive with cars in the same class. I really don't think this is a case of a very expensive, high cache, luxury SUV being too expensive and people who can't afford it being bitter about it. I would reserve that superior attitude for the RR Sport, don't you think?

    So what exactly are they interested in? Building reputation slowly, selling more in Europe, keeping exclusivity through price hikes, making a big buck on low volume and low overhead? Who knows? It isn't by offering incentives or volume sales that's for sure. I live in an affluent suburb of NYC where the price for a basic house starts at about one million, and in the past six months I have seen only two LR2's on the road driving through; no one in my town owns one (but there are a lot of BMW X3's and X5's).

    It's a shame really because I understand the price and cache of the RR Sport and the Range Rover; I don't understand the price and lease price for the LR2. Is it possible this will change in the near future? Could Land Rover increase volume for the US and offer BMW X3 type lease programs and thus make huge profits through volume sales? Probably not, because they can't; though I bet they know if they could they would sell tons of these cars and make big profits, much more than they make on it now regardless of how much we all know they mark it up.
  • It takes over 9,000 dollars for BMW to offer those kind of lease deals on the X3. Land Rover simply can't afford to do that on the LR2. I doubt BMW makes any profit on X3s that are leased because the incentives are so huge. Currently the X3 is built in Austria with very high labor rates but production is moving to South Carolina, where the X5 is built, soon.

    Land Rover simply doesn't have the volume to offer Lease deals like BMW and Mercedes do. Land Rover only sells 200,000 vehicles in the entire world and all of those vehicles are built in only two factories. The LR3, Range Rover and Range Rover Sport are built in Sollihul. The LR2 is built in Halewood alongside some Jags.

    Then you have the pending sale of Land Rover and Jaguar. That is causing problems on the production side of things and the finance side.
  • Thanks for the response but I have a couple of issues with this because I have heard this before.

    BMW is making enormous profits on the X3 and they sell a ton of them because the lease deal and build quality is excellent. To imply, or directly state that BMW's X3 lease/sale price makes no profit for BMW is incorrect and, if believed, can easily cause people to somehow conclude that LR's lease price is fair (because BMW gives it away). Come on, BMW doesn't give anything away.

    If it's true that Land Rover "doesn't have the volume to offer lease deals like BMW" I would consider two points regarding this:

    1. Doesn't that, by default, then admit that Land Rover's prices are inflated and unjustified in the US market for what they are selling, because they don't make enough cars for it to be a good deal? Isn't that, in effect, saying we are paying for their inefficiency, rather than, it's a great car worth a lot more money than a BMW X3?

    2. If low volume production is the reason they can't sell at a fair market price, then how do you explain the old Freelander pricing, which was competitive? Yes, the LR2 is a better built car but it's still called Freelander in the UK and still looks a lot like the old one and is in fact it's successor. When was the last time you saw an upgrade in one model year that nearly doubled the previous model year's lease price?

    Maybe you were just "explaining" rather than defending. Perhaps you even agree with me. But I already know people think what you wrote, however, I just can't imagine how any auto or LR enthusiast thinks all this is okay (just because it can be explained by volume). Sure, some people have money to burn, I know that; but I also know "most" people who are attracted to this car think it is overpriced with one of the worst lease deals (if not "the" worst) in the industry.
  • I agree that it is a bad lease deal but that is also typical of Land Rover. None of Land Rovers models lease well because they DO NOT PROVIDE lease incentives. The only time Land Rover provides lease incentives is for end of model year clearance and then only if there is an excess of ground stock.

    Right now they are decent Lease deals on the 2007 LR3 and there were decent lease deals on the 2007 Range Rover. They never came out with lease deals on the 2007 Range Sport because there was no left over ground stock. Most of the 2007 Range Rovers are sold now so the lease special will probably be discontinued at the end of the quarter if not earlier.

    I would like to see Land Rover provide better lease support for all of their vehicles but they will not do that. I have asked and they have basically given the same explanation I gave you.

    "We don't have the volume to support those kind of incentives. The cars sell fine on their own merits so their isn't a business case for increased incentives. We can't afford 9,000 or more dollars a car to move units that are moving at a good clip."

    A few things you probably don't know.

    Land Rover's Sollihul Plant is MAXED OUT. They can't build any more cars there they are at capacity and are barely satisfying demand as it is. Makes no sense to offer incentives on cars to move them faster when supply and demand are nearly equal.

    LR2s are also selling at a pretty big clip with very little exess supply. Could they sell a few more with a killer lease deal? Yeah but would it be enough to make a business case for several thousand dollars in incentives? I don't know Land Rover seems to think it would not.

    I would argue that BMW has the X3 over priced. You keep talking about lease deals and how the LR2 is over priced but an equivalent X3 is thousands of dollars more. A loaded LR2 is around 40,000 dollars. To get a similar equipment level in a X3 would put the price to around 50,000 dollars.

    Sure the X3 will lease for less but what about the poor schmucks who don't lease it? They got screwed.

    Land Rover has 4.9 percent for 60 months on the LR2. Take the 4.9 percent put 5,000 dollars down and you will have positive equity after 36 months assuming you don't blow the miles out.

    You can probably get that 40,000 dollar MSRP LR2 down to just under 38,000 with some hard negotiating too.

    Right now my dealership only has about a six week supply of LR2s, after we bought extra cars from port, and we are just getting into our busy season. A single busy month could wipe us out of cars which will require us to buy more cars from port further reducing national reserve inventories. I am sure other dealers are in the same situation.
  • Thanks for the response. I think what you've said is correct and it's also a shame for people who are looking for a good (fair) lease deal on the LR2 because it is clearly not coming. If Land Rover considers all this a success, more power to them; but I feel like I was excited about the LR2 when it was announced and now I'm completely losing interest.
  • Muddy, I hear ya. A fair lease deal is not happening. Its frustrating, but not all that bad when consider the following: Not to start a war ;-) that while BMW's own leases are readily available, they are no panacea. I just priced out an X3 to be comperable to my new LR2 with cold pack (only) on bmwusa.com.

    Using BMW's build your own web site feature, that meant sport pack, steptronic, cold pack, rear park distance, premium sound, 18" wheels, privacy glass and real leather and wood trim.

    That BMW totals $45,625 (inc destination) that vehicle leases at 3 yrs (12,000) per year for: $496 (approx) And that is with $4500 down. Or $633 with no money down. Yikes!

    In my opinion, that is not a deal. I only paid $33,400 for the LR2 with the same equipment (no Nav, no Lighting). $12,000 less! Put $3000 down. That gives one approx $585 for 5 yrs with 6.5%

    Sorry, but I'm not spending $500/month on a BMW lease after putting $4500 down on a $12,00 more expensive vehicle. I'll put less down and still own my LR2.

    I guess all I'm saying is that one has to look at it from multiple ways.

    good luck.
  • jax10jax10 Posts: 36
    u2,
    how did you get the $33,400, that includes cold climate? 33,400 plus tax, title, fees? The MSRP 34,700 is the base with no options not including tax, title, fees. the one salesman I have talked to said "there is nothing to talk about on the price, they are what the sticker says." I keep reading that people get them for less, some $500 over invoice, how do you do that? Don't want cold climate, navigation, but would like satellite radio, don't want to pay $3000+ for it though, but I guess if I could get a good deal I would pay for the tech pkg, but would never use navigation, heated seats, etc....thanks.
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