Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Are you shopping for a new car and having a hard time finding what you want or did you recently buy a car but had to settle for something different than what you originally wanted? A reporter wants to speak with you; please reach out to [email protected] by 10/22 for more info.

Land Rover Range Rover Sport Lease Questions

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Land Rover Range Rover Sport. Thanks.

Car_man
Host
Smart Shopper / Prices Paid Forums
«13456711

Comments

  • surfd90surfd90 Posts: 2
    This will possibly be the first time i have paid MSRP for a new car - is this really the case with other buyers?

    Here is the lease they are proposing:

    MSRP and Cap Cost with the options - $63,400
    bank fee $695
    total cap $64,095
    RESIDUAL $33,588 (is this fixed or can it be negotiated?)
    total depresication $30,507
    license $480.75
    other fee $45

    15k miles - 36 months
    $1,693.89 drive off
    $1164.55 per month


    15k/mo - 36 months
    $6,987.28 drive off
    $1000 per month

    Do you think i can do better?

    Thanks in advance.
  • 72774667277466 Posts: 6
    For that much down and per month you should just go ahead and buy.
  • You cannot negotiate the residual, it is set by the bank. I don't know if your license fees are just high because of where you live, or if they are high because they are raising the rate.
    Ask them to try Chase's lease rates. They are very good.
  • Those numbers seem similar to what I am getting quoted in San Francisco
    ....but i am thinking it may be a better purchase than a lease
  • i just leased one last week, sticker was 60k, i got 2300 off sticker. 1900 at inception (first month, sec and fees) and my payment is 839 a month before local taxes.
  • Hi surfd90. While the selling prices of leased vehicles are negotiable just as if you were paying cash or financing, I am not surprised that the dealer that you are working with is trying to get close to full MSRP for the 2006 Land Rover Ranger Rover Sport right now because it is such a new model and it has been relatively well received by the public. I personally think that it is a really neat truck, though it is a little expensive.

    One problem that I have with the lease that you were quoted is the large 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 Range Rover Sport would be exactly the same, regardless of whether you had put nearly $7,000 down, or had made absolutely no down payment at all.

    I will work up a sample lease payment on this truck for you to give you an idea of what it should cost to lease using Land Rover Capital Group's actual base lease program. According to my calculations, if you were to lease a 2006 Land Rover Range Rover Sport HSE (not the Luxury or Supercharged model) with an MSRP of $63,400 and a selling price of $64,095 (after adding in the $695 acquisition fee, which I though should only be $495 so there may be a little mark up going on) through LRCG right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $1,063. With a $6,000 capitalized cost reduction, which I strongly advise against, this truck's monthly payment would drop to around $879. I am not sure if there is any money factor mark up going on here because I don't know what the payments that you were quoted would be before tax. You may want to ask your dealer so that you can compare them to the payments that I came up with. Also, if there are any other Land Rover dealers in your area, you may want to see if you can get this truck for less than full MSRP.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • That was very helpful analysis! Much appreciated.

    dwax1...where did you get your car? I am in California

    thanks
  • I read a posting here somewhere where the buyer got a RRS SC on the X Plan pricing (works for a Ford partner company) from a dealer. I can't find one in So Cal who will honor this pricing. Any suggestions?

    Thanks.
  • I have always bought my vehicles, but now find myself being a partner in a new small business.

    the business itself could borrow the 75K $ for a new SC RRS or I could opt to lease:

    I guess i would be in the highest tax bracket, but I really do not understand whether that really matters.

    Does the accelerated depreciation that i would be eligible for, make any difference?

    Does acquiring a RRS with a lease make one less or more able to return a vehicle with a leaky sunroof?

    I live in North Carolina in the Raleigh area, and have not contacted any dealerships yet

    your advice or recommendations for further web based readings would be appreciated,

    cheers

    :confuse:
  • grommetgrommet Posts: 445
    No dealers I know of will discount on RRS. And markups have been seen! LR3 is pretty easy for X-Plan, but the RRS is too new and inventory is even more limited. Welcome to California. :)
  • You're very welcome brian500. I don't personally have a Range Rover Sport, though I wouldn't mind owning such a neat looking truck.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • Hi heli_doc. I hesitate to answer any specific income tax questions because I am not personally an accountant. I can tell you though that you cannot return a truck with a leaky sunroof, regardless of whether it was financed or leased. If you have one that has this problem, you will have to take it to your local dealer to have it repaired under warranty.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • ll10ll10 Posts: 1
    I am looking at the RR Sport, HSE with lux package, satellite radio and bluetooth. Sticker is $60,300, selling price $58,800. For 36 months, 10,000 miles it is about $925 / month. It is through Land Rover Capital. Their money factors strike me as high but I'm not sure.

    Any thoughts?
  • Hi ll10. Land Rover is not currently providing much in the way of lease support on the Range Rover Sport. If you were to lease a 2006 Range Rover Sport through Land Rover Capital Group right now for 36 months with 10,000 miles per year, its buy rate lease money factor and residual value should be .00285 and 60%, respectively. Using these numbers, an MSRP of $60,300, and a selling price of $58,800, I come up with a 36 month, zero down, pre-tax monthly payment of around $899. This is not that far from the payment that you were quoted. If you are having your truck's security deposit waived or if your quote includes tax, that would make up for the difference.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • rrfan1rrfan1 Posts: 7
    it seems if MSRP is 57 for the HSE and invoice is closer toi 51k. with a little downpayment you could get 36 months & 10kmiles for @ $600/month.

    putting down a small down payment, say $3k is not an issue as suggested above. I think that is is just a question of the time value of money. If the car gets totaled, insurance will pay to recoup the car.

    does anyone else think it is possible to get the RR Sport base model for 600/month with 3k down?
  • No you could not. I had a guy trying to get into the 800 dollar range for a lease pretty much the same is that. He had to put down over 7000 dollars in order to make it work and he did not want to do that.
  • rrfan1rrfan1 Posts: 7
    how did you get that 2300 off the sticker price? was your residual 58% or 60% of the total and the last question is the money factor?

    i just went to the dealership and they were telling me that the residual is 58% which i think is BS and they were trying to tell me that normal money factor was 0.0036. so the 60400 sticker was coming out to 1049 a month after 5k down.
  • Car-man,
    I'm really at a loss to understand the lease figures on a RRS. I've been quoted about $944 inc tax (6%) for a 30 month lease, 0 down, 12K miles based on an adjusted cap cost of $57700 plus acq fees etc of $595 (=$58295). LRFC MF is 00.355 (quite high).
    Upfront is just the first month plus $15-00 fee.

    What I don't undertsand is why the lease is generally this high given that the residual is $42210. This means depreciation is about $16,000 of the adjusted cap cost. Add to that sales tax of $3498 ($58295 x 6%) = $19,500. The difference between this figure and the total cost to me of the lease (30 x $944 = $28320) is the finance charge - ie $8820 !

    How can the finance charge be $8820 when I'm in effect financing about $20,000 ??? Even at a compounded rate of 8.5% per annum for the 30 months should mean that the finance element should be about $4000. Therefore, it seems that i'm being 'overcharged' by about $5000 !!!

    As I see it, the lease on a RRS shouldn't be more than about $800 per month (unless my figures are drastically wrong somewhere)......?
  • kyfdxkyfdx Posts: 167,439
    You aren't financing $20,000... The bank that is leasing you the car has to buy it from the dealer.. In this case, they are paying them $58,295... That is the amount you are financing...

    Actually.. to put a finer point on it.. you are financing the average of $58,295 and $42,210 (which is the value of the car when the lease is finished).

    So, your average "balance" over the life of the lease is approximately $50,250.. Multiply that by 8.52%, then again by 2.5 years... I think you'll see where it is going ..

    The finance charge is actually much greater than $8800.. I think you've overstated your sales tax... The finance charges are over $10K...

    regards,
    kyfdx
    Host-Prices Paid Forums

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • Kyfdx,

    I thought that the whole point of leasing was that you only have to finance that portion of the car that you use/lease for the period that it's kept.

    I don't understand the 'average' that you state as the finace charge over the period that I lease the vehicle should cover the bank's cost of buying the vehicle and having equity tied up in the vehicle which is realised at the end of the lease.

    If I'm being asked to finance the 'entire' cap cost amount for the 2.5 year period, then is it not worth just buying the vehicle outright?

    Also, if I purchase the vehicle at the end of the lease, I've already paid the bank its finance charges for leasing me the vehicle AND, in effect, for purchasing the vehicle for me 2.5 years earlier...???!!!
  • kyfdxkyfdx Posts: 167,439
    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
    Host-Prices Paid Forums

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • 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'?
  • kyfdxkyfdx Posts: 167,439
    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

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • 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
    Host
    Smart Shopper / Prices Paid Forums
  • 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.
  • kyfdxkyfdx Posts: 167,439
    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

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • 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?
  • kyfdxkyfdx Posts: 167,439
    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

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • 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..
  • hvfhvf Posts: 12
    atsu888
    What equipment has the car that you're talking about?
    DOWN PAYMENT
    Taxes?
  • hvfhvf Posts: 12
    Carman
    I'm currently in NY state moving to florida in few months (3). How should the taxes be calculated. Would it be beneficial just lease down in Florida?

    HVF
  • Hi,

    Can you provide the money factor and residual value on a 2006 RRS supercharged 36 month lease with 12,000 miles a year?

    Thank you,
    Steve
  • OK guys great thread and very helpful

    Couple things off topic before i get into the lease.
    The dealer here in Dallas told me that if i purchase a car from another dealer I will NOT get a car while my car is being serviced. I own and owned many luxery cars Mercedes/BMW/Porsche and never heard of such a thing before. Is this true?

    I was also told at the same dealership that a RRS lease for 36 months zero down would cost me about 1200... reading this thread i see that is crazy. Im not idiot but to me this sounded way to high so i left and decided to do some research. I usually buy but i end up loosing since i keep them for 3 years and get something new anyways.

    30-36 months
    $3000 total out of pocket
    13-15K miles (really need 15k)
    I have perfect credit around 750-780 FICO

    Lease question is:

    I want to do a 32-36 month lease on a RRS with no more than $3000 out of my pocket including taxes and any first payments up front. The options and prices cut and pasted from rover is as stated:

    Range Rover Sport HSE
    Base MSRP $57,250


    Colors - Edit
    Rimini Red $0
    Alpaca Seats/Alpaca Carpet $0


    Options - Edit
    Rear Seat Entertainment $2,500
    Satellite Radio $400
    Personal Telephone Integration $400
    Cold Climate Package
    TOTAL COST: $61850

    Can someone please assist me and tell me what I should or shouldnt pay for this car. I would really like to stay in the 850 range taxes and all a month.

    THANKS IN ADVANCE!
  • Hi tallwoods. There definitely are some things that I don't like about this deal. First, 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 Range Rover Sport would be exactly the same, regardless of whether you had put $5,000 down, or had made absolutely no down payment at all.

    Also, 60 months is way too long to lease any vehicle for. I don't even know if Land Rover will lease their trucks for that long a term. Locking into such a long lease, makes it more likely that you will need to get out of your deal early than if you had leased for a shorter term. Getting out of leases early is usually very expensive to do. You would be much better off leasing the Range Rover Sport that you are interested in for 48, 39, or 36 months.

    I'd be happy to run some calculations for you and let you know what this truck's lease payment should be like right now if you tell me its full MSRP.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • Hi atsu888. You never mentioned the selling price of the truck that you are interested in leasing. This is an important number 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 the price of the truck that you want to lease you don't know how good a price you are getting it for. The second reason is that one needs the selling price of a vehicle that they want to lease is that it is necessary to calculate its lease payment. I would be more than happy to give you my opinion on this lease if you let me know what the selling price is.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • Hi hvf. I am not personally familiar with how sales tax is calculated on leased vehicles in Florida. You may be able to find out by visiting one of the following links: Florida Department of Highway Safety & Motor Vehicles or State of Florida Department of Revenue.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • Hey Steve. Here's the information that you are looking for. If you were to lease a 2006 Range Rover Sport Supercharged through Land Rover Capital Group right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00305 and 59%, respectively.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • Hi dallasrange. Whether you get a loaner car while your vehicle is in for service is really up to the dealer that you use for service. Your local Land Rover dealer certainly has the right to restrict the use of loaners to people who have purchased their car from their store if they choose to. If you don't believe the salesperson who told you this, you can always place an anonymous call to the service department saying that you bought your truck at another dealer, but want to have it serviced there and need a loaner and see what happens.

    Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. I would be happy to give you an idea of what this truck's lease payment should be like. However, in order for me to do so I need you to tell me its selling price. You can get an idea of how much you should pay for this truck by shopping around, or possibly by visiting the following discussion: "Land Rover Range Rover/Sport: Prices Paid & Buying Experience". Let me know what this number is and I'll use Land Rover's actual lease program to tell you what your lease payment should be.

    Car_man
    Host
    Smart Shopper / Prices Paid Forums
  • Thanks Car Man. I've edited my parameters. What I am looking at is the base model with a locking rear diff option, that's about it.

    Purchase price, $58,050 (not including taxes, etc..)
    Down payment: $1000 (to cover taxes, fees, etc)
    lease term: 48 months
    Mileage: standard 15,000/yr

    In your calculation, can you list the money factor you use, and where you got it?

    Regards,

    NW
This discussion has been closed.