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!

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.

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%.

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.

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.

...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.

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?

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..

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.

Negotiated a price on a Grey 97x for 36,986 after all is said and done - rolled over all fees - except the tire tax of $7.50 I will be paying 417 a month. I don't think I can get much better. Is that alright for a 2006, when the 2007 are right around the corner?

I am about to lease a 2006 Saab 9-7X 5.3i with Nav and DVD. The MSRP is $44,535 but I negotiated a price of $38,178. What’s more, Saab is providing $2000 cash to put towards the capital-cost reduction.

The term of the lease is 27 months (15K miles/year) with a residual of .67 ($29,833). This means, in plain English, that I have to pay $6345 over a term of 27 months ($235 X 27 = $6,345) PLUS the interest rate and taxes.

Here is where I get lost.

They claim my “rate” is 4.2% (for those of you who like the term “money factor” - 4.2% is equivalent to 0.00175). If this were the case, my fee for that rate would equal $115 per month.

I know my depreciation fee is exactly $235. I also know my tax (on the payment) is exactly 6%. However, I have been quoted a monthly payment of $399.54 (X+Y is not equaling Z).

$235 + $115 = $350 AND $350 + 6% equals $371 How did GMAC come up with $399?

I have also determined if my interest rate were actually 5.2 % (which happens to be exactly one percent higher than my quoted 4.2%), my payment comes out to $400 (which is essentially what they quoted me).

Here is my question. Does anyone know if GMAC has a fee of 1% hidden behind their advertised rate, or is my dealer (who knows I have a great deal) trying to sneak some profit back into his end of the deal?

That's a thought, but I don't think any acqusition fee is hiking the rate like that. Their payment quote is $371 ($29 per month higher than my math indicates it ought to be), which is a difference of $783.00. I'll let you know if I am able to figure it out and/or what "I am told".

Just when I thought it couldn’t get any better...

Well, it turns out the figures my dealer quoted me were dead on. The reason my numbers failed to add up is this: GMAC charges interest, not only on the vehicle itself - but on the depreciation value as well. Nevertheless, I was happy when my dealer informed me (today) that Saab just added an additional $1500 cash off incentive as part of a Labor Day special. As a result, my payment dropped an addition $60

Vehicle stats are in my post above:

$670 down (includes first month payment) for Drive Off $368 per month 18000 miles/year (I added $25 per month to the $342 payment quoted for 15000 miles/year) 27 Month lease.

Hi sharonnj. I would be happy to give you my opinion of this deal if you provide me with this vehicle's full MSRP. This number will show me how much of a discount you are being given on it and will enable me to use Saab's actual lease program to estimate what its monthly payment should be.

Hi frykman. The method that was used to calculate the sales tax on your 9-7X has nothing to do with GMAC. The way that sales tax is charged on vehicles varies from state to state. Congratulations on getting such a good deal on your truck. The extra bonus cash that was available out there over Labor Day made for some excellent deals. I'm glad to hear that you were able to take advantage of it. Enjoy your new ride.

Indeed, The Labor Day bonus was a nice surprise (I'll take luck over negotiating skill everyday of the week). Nevertheless, I still do not fully understand the interest rate. It's more complex than I would expect. Even lease calculators I find on the internet don't arrive at the same figures as GMAC. I understand the sales tax (it's just 6% of the payment).

Hey Car Man. Any info on the money factor for 3yr 15K miles in Florida? Also, any reason no one is looking for info on this vehicle? I have not looked at one yet, but it has received pretty good reviews. Thanks.

I'm waiting for a quote on this vehicle too. 27mo, 15k per year.

Where do you get your information from?? Is it public information that consumers can look up or are we at your mercy?? There are several vehicles I'm looking into, Saab 9-7 being one of them, but I don't want to go into each of the forums and ask you about the latest programs, money factors, yada yada yada....

Let me know, otherwise, I'm afraid I'll have to pester you!!!

Hey jefflawyer. Here's the information that you're looking for. Saab Financial Services' current base lease rate and residual value for a 36 month lease of a 2007 Saab 9-7X 4.2i with 15,000 miles per year are 3.08% and 60%, respectively. As you can see, Saab publishes lease rates instead of money factors for the vehicles that it leases. You can convert its published lease rates into approximate money factor equivalents by dividing them by 2400.

The 9-7X is not a very popular truck. There's nothing really wrong with it, but in my opinion there are a lot of other trucks out there that one can lease for a similar payment that I would personally rather lease.

Hi maradag. You're not pestering me at all. I'm always glad to help. I am not aware of any resource that provides information on manufacturers' current lease programs to the general public. Saab Financial Services' current base lease rate and residual value for a 27 month lease of a 2007 Saab 9-7X 4.2i with 15,000 miles per year are 3.08% and 66%, respectively.

When negotiating your lease on this truck make sure to take the $1,000 lease cash that Saab is currently providing on it into account. If you are interested in a unit that has been in dealer inventory since December 15th or earlier, there is an additional $750 bonus cash that you can use to your advantage. These cash incentives will help you to negotiate an attractive capitalized cost.

Hi Carman, I was wondering if you could mention a couple of the other alternatives out there for similar pricing which you feel are better vehicles/deals?

Also, I am weiging two choices: A 2006 97-x with 6k miles that was an "executive" vehicle/ It's list is about $42k, but I amoffered it for $28,118. Choice two is a 2007 with a list of 41,235 that I can buy for $34,300.

Hi suburbman. Other trucks that I would consider if I was looking at the Saab 9-7X include the BMW X3, Volkswagen Touareg, Cadillac SRX, Acura RDX, Toyota 4Runner, Toyota Highlander, and the Honda Pilot. In my opinion, these trucks are either better values or better trucks than the 9-7X.

Car_man,Please answer this question honestly:Is your stated opinion regarding the value and quality of the 9-7X vis a vis other competing models based on actual hands-on experience driving a 9-7X 0r just based on the assumption that it is a rebadged Chevy Trailblazer?Please be frank.

Hi saablcp. I have driven the 9-7X. I have nothing personally against Saabs. In fact, I am a former Saab lessee. The 9-7X is based upon the Chevrolet Trailblazer, but that's not why I said that some of the vehicles on the list that I mentioned are better trucks or better deals right now. There's nothing wrong with the 9-7X, but I personally would rather have a BMW X3, Volkswagen Touareg, Acura MDX, or a Toyota 4Runner over it. Without getting into specifics, I just like them better. As far as the deals go, the Honda Pilot and Toyota Highlander will cost over $100 per month less and the Acura RDX will cost $50 per month less than the 9-7X to lease right now.

Hi avalon2000. Let's crunch some numbers and see what we come up with. According to my calculations, if you were to lease a 2007 Saab 9-7X 5.3i that has an MSRP of $44,080 and a capitalized cost of $36,731 through Saab Financial Services' Corp. right now for 27 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $352. The payment for an otherwise identical 36 month lease would be $437.

## Comments

6The 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!

8Yeah, 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.

6What 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.

8I'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.

656,294overstatethe 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

MODERATORPrices Paid, Lease Questions, SUVs

Need help picking out a make/model, finding inventory, or advice on pricing? Talk to an Edmunds Car Shopping Advisor8Most people do focus on the monthly payment. It's understandable.

8So, 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?

56,294Possibly, 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...

MODERATORPrices Paid, Lease Questions, SUVs

Need help picking out a make/model, finding inventory, or advice on pricing? Talk to an Edmunds Car Shopping Advisor8Since 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.

1after all is said and done -

rolled over all fees - except the tire tax of $7.50

I will be paying 417 a month.

I don't think I can get much better.

Is that alright for a 2006, when the 2007 are right around the corner?

5364I am about to lease a 2006 Saab 9-7X 5.3i with Nav and DVD. The MSRP is $44,535 but I negotiated a price of $38,178. What’s more, Saab is providing $2000 cash to put towards the capital-cost reduction.

The term of the lease is 27 months (15K miles/year) with a residual of .67 ($29,833). This means, in plain English, that I have to pay $6345 over a term of 27 months ($235 X 27 = $6,345) PLUS the interest rate and taxes.

Here is where I get lost.

They claim my “rate” is 4.2% (for those of you who like the term “money factor” - 4.2% is equivalent to 0.00175). If this were the case, my fee for that rate would equal $115 per month.

I know my depreciation fee is exactly $235. I also know my tax (on the payment) is exactly 6%. However, I have been quoted a monthly payment of $399.54 (X+Y is not equaling Z).

$235 + $115 = $350 AND $350 + 6% equals $371 How did GMAC come up with $399?

I have also determined if my interest rate were actually 5.2 % (which happens to be exactly one percent higher than my quoted 4.2%), my payment comes out to $400 (which is essentially what they quoted me).

Here is my question. Does anyone know if GMAC has a fee of 1% hidden behind their advertised rate, or is my dealer (who knows I have a great deal) trying to sneak some profit back into his end of the deal?

56,294"sneak some profit back into his end of the deal?"But, that is the way the smart money would bet...

MODERATORPrices Paid, Lease Questions, SUVs

Need help picking out a make/model, finding inventory, or advice on pricing? Talk to an Edmunds Car Shopping Advisor4Take care and thanks for the reply.

4Well, it turns out the figures my dealer quoted me were dead on. The reason my numbers failed to add up is this: GMAC charges interest, not only on the vehicle itself - but on the depreciation value as well. Nevertheless, I was happy when my dealer informed me (today) that Saab just added an additional $1500 cash off incentive as part of a Labor Day special. As a result, my payment dropped an addition $60

Vehicle stats are in my post above:

$670 down (includes first month payment) for Drive Off

$368 per month

18000 miles/year (I added $25 per month to the $342 payment quoted for 15000 miles/year)

27 Month lease.

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4Indeed, The Labor Day bonus was a nice surprise (I'll take luck over negotiating skill everyday of the week). Nevertheless, I still do not fully understand the interest rate. It's more complex than I would expect. Even lease calculators I find on the internet don't arrive at the same figures as GMAC. I understand the sales tax (it's just 6% of the payment).

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185Where do you get your information from?? Is it public information that consumers can look up or are we at your mercy?? There are several vehicles I'm looking into, Saab 9-7 being one of them, but I don't want to go into each of the forums and ask you about the latest programs, money factors, yada yada yada....

Let me know, otherwise, I'm afraid I'll have to pester you!!!

Thanks!!!

38,515The 9-7X is not a very popular truck. There's nothing really wrong with it, but in my opinion there are a lot of other trucks out there that one can lease for a similar payment that I would personally rather lease.

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38,515When negotiating your lease on this truck make sure to take the $1,000 lease cash that Saab is currently providing on it into account. If you are interested in a unit that has been in dealer inventory since December 15th or earlier, there is an additional $750 bonus cash that you can use to your advantage. These cash incentives will help you to negotiate an attractive capitalized cost.

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5I was wondering if you could mention a couple of the other alternatives out there for similar pricing which you feel are better vehicles/deals?

Also, I am weiging two choices: A 2006 97-x with 6k miles that was an "executive" vehicle/ It's list is about $42k, but I amoffered it for $28,118.

Choice two is a 2007 with a list of 41,235 that I can buy for $34,300.

Which do you think is a better offer?

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19538,515Car_manHost

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25With factory installed navigation:

2007 9-7X 5.3i lease

MSRP: $44080

Base Cap Cost: $36136 [from www.carsdirect.com] +acq. fee of $595

Term: 27 mo. & 36 mo.

Down: $0

Sales Tax: 8.375%

15K @ yr. mileage

NYC metro area

What should my monthly lease payment be for both 27 mo. & 36 mo.?

I usually use www.leaseguide.com/calc.htm as my calculator.

Thanks!

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