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Car_man
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Prices Paid Forum
Car_man
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Prices Paid Forum
Car_man
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Prices Paid Forum
MSRP*: $44,875.00
Supplier Price: $41,277.36
Current Offers: -$2,000.00
Net Price: $39,277.36
39M\10K YR lease
Is this about right, or can i get him to go down a little?
Is the MoneyFactor and Residual Value still @ 6.9% and 60%
15K miles a year
36 Month
.0079 Money Factor
60% Residual
$52,839 MSRP
$50,350 Capital Cost ( so they are discounting the car about $2,500)
6.25% For taxes
0 down
Monthly Payment $954 !!!
This is ridiculous my Audi A8L 2005 payment is $907 a month based off $68,000.
Then the quoted me $864 a month to purchase it out right based off $48,350 72 months. 0 down with taxes included.
Any thoughts on this one?
Thanks
MSRP: 44,000
Lease payment: $440 a month
Term: 39 months
Miles: 12,000/yr
Cap cost reduction: $1500 cash + 3600 GM Card earnings
Is this a good lease deal? Also, they are only giving me the $1000 Bonus cash and said the $2000 Customer Rebate does not apply to leases. Is this correct? Do you think GM will offer any better lease deals on Tahoes in the near future? Thanks!
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In "the old days" dealers would consider advertising just another cost of doing business along with utilities, rent, etc. Nowdays since all dealers are expected to sell their vehicles for invoice or close to it they are looking at any way they can make a few more bucks. Charging an add fee is no different than if they said there would be rent fee or a utility fee added to your costs. Ask the dealer why they don't have a roof repair fee or a landscaping fee....it is all the same. If you are happy with the price then go for it. $1000 should not make or break the deal on a $48K plus vehicle.
Car_man
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Prices Paid Forum
Car_man
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Prices Paid Forum
Car_man
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Prices Paid Forum
Make sure to stop by the following discussion to see how much other community members have paid for their Tahoes lately: "Chevy Tahoe: Prices Paid & Buying Experiences".
Car_man
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Prices Paid Forum
What you were told about General Motors customer cash allowance is correct. It is not available on vehicles that are leased through GMAC. It is difficult to predict exactly what manufacturers will do with their future lease programs, but I do not anticipate making any significant enhancement to the Tahoe's program.
Car_man
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Prices Paid Forum
Car_man
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Prices Paid Forum
Thanks
MSRP 50445.00
PEP Mileage Price
PEP1 1-3,000 $42116.00
PEP2 3,001-6,000 $41043.50
PEP3 6,001+ $39792.25
I am looking at either a 36 or 48 month lease with 15K miles p/year.
Zero down.
Any help would greatly be appreciated
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
According to my calculations, if you were to lease a 2007 Chevrolet Tahoe that has an MSRP of $49,305 and a selling price of $44,616 through GMAC right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $631. The payment for an otherwise identical 48 month lease would be around $598.
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Do you have any other tips to share?
Thanks again..
If it's a GMAC SmartLease, then the lease rate will be an interest rate and not a money factor. Alway ask for the base rate which is sometimes called the buy rate. This is the rate with 0% reserves. Don't let them play the game of convereting the rate to a money factor because, although close, it's not spot on.
Reserves work in much the same way that points do on a mortgage loan. You want the base rate (e.g., 3.9% + 0% reserves). If they insist on reserves, then I simply deduct the dollar amount of the reserve from the agreed upon value (i.e., sell price).
GMAC computes two annuity factors; one that's applied to the adjusted capitalized cost and the other that's applied to the residual...
Base Payment = CapFactor x Adj. Cap Cost - ResFactor x Residual.
ResFactor x Residual really amounts to a credit of the unused portion of the car's value (as measured by the residual) applied against the adjusted cap.
GMAC does something very peculiar that very few people realize and that is this...
They use the lease rate to discount the residual one month nearer to the present. I'll call the result the adjusted residual...
adjusted residual = Residual/(1 + r/12) where r = lease rate (e.g., 0.039). The ResFactor already accounts for this discount factor.
This causes the payment to inflate somewhat because the adjusted residual < Residual. I'm not sure why they do it and neither was GMAC when I confronted them with this several years ago. My best guess is that they do it to account for the fact that they don't charge a disposition fee but, then again, not many other captives do either.
If you like, I can confirm the dealer's calculations. I'll need the following info...
Adj. Cap,
Residual Value,
Lease Rate,
Term,
Base Payment (without tax)
Good luck!
This is great info and nice to finally know how this all works.
Thanks again,
Is it better to wait until a big holiday (Labor Day, 4th of July, etc...) to lease a car since that is when GM, etc... offers discounts (or do these discounts only apply to purchases)?
I have a GM Supplier discount - is this also applicable to Lease Vehicles?
What is the best way to approach a dealer/salesperson regarding a lease - do you negotiate the price up front as if you were to buy the car and then use that price as the value of the lease?
Is it better to wait until a big holiday? Sometimes. Check to see what incencentives are being offered now. In September, those same incentives may not be available. As a general rule, though, it's not a bad idea to wait for a holiday especially Xmas because the dealerships compete with Santa. Discounts and incentives apply to leases unless specifically stated otherwise.
Yes, your GM Supplier discount applies to leases. Check out the following website for further information...
https://www.gmsupplierdiscount.com/ip-gmsupplier/virtual/pages/html/sd_faq.html
ALWAYS negotiate sales price just as though you were buying it. Check edmunds.com or kbb.com for MSRP/Invoice pricing information and incentives.
It's best to prepare a one page lease proposal similar to the one described below. A proposal saves time, money, and aggravation. If my proposal is accepted, I tell the dealer to have the keys and papers ready for me to sign and away I go! Easy, huh?
Know how to calculate lease payments. Your proposal MUST BE DEAD ACCURATE; otherwise, you risk not being taken seriously and that can cause problems. Incorrect payments create opportunities for the dealership. It sends the message that you don't know what you're doing. You want to make it easy for the dealer to transfer the numbers on the proposal directly onto the lease agreement. So, you need to make sure that every number in your proposal is spot on.
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Consumer Retail Lease Pricing Information
Base MSRP 2007Corvette 2dr Hatchback (6.0L 8cyl 6M) 44,170.00
Machine Silver with ebony interior 0.00
3LT Coupe Preferred Equip Group . 4,945.00
QX3 Chrome Aluminum Wheels 1,850.00
Destination Charge 825.00
MSRP .. . 51,790.00
Capitalized Costs
Agreed Upon Value .. 44,233.47
Gross Capitalized Cost 44,233.47
Adjusted Capitalized Cost 44,233.47
Residual Data
Residual Factor .. 0.58
Residual Value (Res. Factor × MSRP) .. .. 30,038.20
Cost of Money/Term
GMAC Int. Rate . *7.50%
Term (months) 36
Payment Calculation
Monthly Lease Payment (0.0309130 x Adj. Cap - 0.0245484 x Residual)................ 630.00
Initial Lease Charges
Title, Registration, Plates .. 200.00
1st Month’s Payment 630.00
Security Deposit .. 650.00
Acquisition Fee 595.00
Sales Tax @6.25% x Agreed Upon Value .. 2,764.59
Amount due at lease signing . . 4,839.59
* GMAC Tier S (top tier) Rate
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Remember that the above is an example only. If GAP insurance is not included, I suggest you purchase it from your insurance agent. GAP costs approximately 0.1% of the MSRP annually or 0.1% x 51,790 = 51.79 in this example.
The Residual reflects an annual mileage allowance of 12,000 miles in this example. GM leases do not have disposal fees.
The Agreed Upon Value is the selling price. If you have access to a TI83/84 calculator or Microsoft's EXCEL, I'll be happy to give you instructions as to how to calculate the payment... it's very easy to do. Otherwise, if you're interested, you can email me and I'll be glad to help you create a lease proposal. The best way to NEGOTIATE with a dealer is DON'T. Once I FAX/email my proposal, I simply want a response of YES or NO. If it's NO, I simply FAX/email another dealer. I do my homework and so I know ahead of time that the terms of my proposal are "doable".
A good rule of thumb for computing GM payments is to convert the GM rate to a money factor (e.g., 0.075/24 = 0.003125) and use the following formula...
Base Payment = MF x (AC + RV) + (AC - RV)/Term (months)
where
MF = Money Factor
AC = Adjusted Cap
RV = Residual Value
Using the above formula, I get $626.41 which is close to $630.00 but not close enough. This formula will get you very close but close is never close enough especially if you're creating a lease proposal. Very few fund providers use interest rates. GM and Ford Credit are the only two finance captives that I'm aware of that use interest rates. The rest use money factors.
Observe that the sales tax is computed on the Agreed Upon Value as practiced by some states. Other states compute the sales tax on the payment streams (e.g., 0.065 x $630.00).
I hope this helps.
John
I have recieved a few offers from dealers here in Houston and wanted your opinion on one.
1) 2007 Tahoe LTZ MSRP $48,010.00
My Price $40,991.00
Is this a decent deal. It appears to be below invoice according to Edmonds price guide.
Also, you have shown me ways to calculate a lease which has been very helpful. Is there a way to do a reverse thought process on this.
Meaning: If I know that I want my lease payment to be around $550.00 p/month what MSRP or bottm line price should I be looking at or shooting for.
I do not want to put any money down and use all rebates etc towards the pricing.
36 or 48 month lease.
15K miles p/year
Can this be done?
Thanks again for your help.
stanman4
None of these vehicles have been discounted through rebates on the prices that I've given. They are all being sold at these prices through GM's company car program and are sold like NEW vehicles. These vehicles would still be able to have whatever rebates or discounts are out there at the time. Very good deal for a company employee or retire and family members that would want to take a vehicle with some mileage.
-D
Sounds like a fairly decent deal. To answer your other question regarding payment, recall the following equation...
P = F (A + R) + (A - R)/T
A little algebra (did you think this stuff was useless in HS?) allows us to solve for A...
A = [PT - R(FT - R)]/(FT + 1)
Simply plug in the known values for Payment (P), Term (months) (T), Residual Value (R), and Money Factor (F) to evaluate the Adj. Cap (A).
Once you've solved for "A", you can use the following identitiy...
V + C - D = A
to obtain...
V = A - C + D
where...
V = Agreed Upon Value (Sell Price)
A = Adj. Cap.
C = Amount(s) Capitalized (i.e., financed) which may include taxes
D = Cap Reduction(s)
Now you have found "V", the Agreed Upon Value or sell price.
And that's what ya call "work'n backwards".
I suggest that you pocket all cash rebates especially if your money factor is low. "C" will most likely be zero in your case unless you have trade equity. DO NOT put cash down as a car/truck is a depreciating asset and, if you have a total loss, it's not likely you'll recover your down payment (cap reduction).
Hope this helps.
John
This information you give in fantastic.
On my deal above you stated that it is fairly decent deal. What would you do to make it a GREAT deal..
I really need help in that area. (negotiating the price).
Also, I heard today that GM will be offering bigger incentives over Labor Day. Do you know what the incentive may be and is it worth to wait if you lease.
Thanks again,
stanman4
Based on the information provided by edmunds, I would say invoice + $3,000 in cash rebates...
http://www.edmunds.com/incentives/RebateController?styleid=100682945&popuppage=o- n
Apparently, there is is $2,000 cash to customer rebate plus a $1,000 cash to dealer incentive. However, I'm not sure whether or not these rebates apply to your model. If not, I'd shoot for at least $1,500 under invoice.
John
I will shoot for that.
I will let you know how how it turns out.
stanman4
Today when my wife goes to get her new plates on the Trailblazer we find out that the Chevy dealer made a mistake and put the title of the replacement Trailblazer in our name, not GMAC, and has was marked as a purchase not lease. We have the title in our name and in our possession that should have gone to GMAC. GMAC has the Trailblazer listed as leased but they do not have any copies of the title. My wife called the dealer and the lady from the title dept told her that the replaced Trailblazer is listed as a purchase not a lease. The dealership asked my wife to mail the title to them they would fix it and get the new title to GMAC.
After everything we went through with this dealer and the lemon I do not trust anyone that works at that place. I am not going to send it in yet. I am thinking about holding out to see what they do... after all I do have the title in my possession and in my name. Thoughts?
Thanks
The dealer told meet it did not make a difference what dealer I purchased the vehicle at because GMS pricing even on a lease would always be the same. He quoted a price of 720.00 a month. I called him a day later and told him he was playing with the interest, he called back and said he could do 682.00 per month. Does this sound right to you? Are people paying this much for leases these days? Also he suggested this new lease damage protection plan for up to 5000 coverage, 1000 per item its 21.00 a moth rolled in. Do you think this is a fair deal? And should I get the protection plan. Thank You
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Generally speaking, the end of the month is the best time to purchase or lease a new vehicle. Dealers are usually the most anxious to finalize deals then to help boost their monthly numbers. Furthermore, manufacturers often sweeten their incentives at the end of the month.
When leasing, it is important to negotiate your vehicle's selling price, just as if you were paying cash for or financing it. The only difference between negotiating the selling price of a Tahoe that you plan on leasing and one that you plan on purchasing is that the $2,000 customer cash that GM is providing on this truck is not compatible with its special lease program.
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
I definitely would pass on the additional damage protection coverage if I was going to lease. It is going to cost you $819 plus lost interest over the life of your lease. Unless you really mess your truck up, chances are that you won't have to pay more than this in excess wear and tear.
Car_man
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Prices Paid: Buying & Leasing Experiences Forum
Thanks
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That seems like a really high price considering the '08 models will soon be out.....I would go back to the dealer and have them sharpen up the pencil. I'll bet you can better that price by at least $5K. The lower the sales price the lower your lease payments will be. And if they won't make you a better deal just walk out the door. They need you, you don't need them.
I live in Daly City, California. I wouldlike to lease a 2007 Chevy Suburban, 12k miles year, no money down, 36-39 month lease. I am a novice and need help. The dealer tried selling me a 39 month lease for $749, with TAX INCLUDED (8.25%).
I am trying to lease a SUburban for less than $700/month. The news came out today (9/4/2007) about how crappy the car industry has been, and given the fact that the 2008 models are in, is this realistic?
Thanks in advance!
Just trying to see how low I can go.
I got this quote from a dealer in CT.
2007 Chevy Tahoe
LT3
$42,895, Sticker
$40,900. selling price
$4000K down
$541 per month incudes (sales tax, everything else)
39 month lease
$25,900 purchase at end of lease
15k mile per year
Sport Red ( cashmiere leather)
Not sure of money factor
Would love the payment to be around $480 per month....
what do you think the sales price would have to be for that vehicle to get to $480?
I'd hate to give up anything now...the truck is so beautiful.
I can't stop thinking about this car..and it isn't even for me, its for my wife....lol
Let me know if I missed anything....
Thanks again for any and all information, this forum has be so helpful. Thanks for everyone who takes the time to respond.
Kevin ( Jetsss)
I am talking with a few dealers in Philly area and they are not close.
Thanks
My "buyout" for the lease as of today is 42,900. At the end of my lease, Sept. 2010, the residual value will be 27,000.
My question is: Did I get hosed? I would like to buy the new TL when it comes out in Fall of 2008, but I am afraid I will be completely upside down on my Tahoe.
Did I get hosed at the dealer?
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You are correct...you are and will continue to be "upside down" on your lease. Good deal or bad deal, you are underwater.