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2013 and earlier GMC Acadia Lease Questions

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  • Hey autoboy19. GMAC's current base lease rate and residual value for a 36 month lease of a 2010 GMC Acadia SLT-2 AWD with 12,000 miles per year are 0.95% and 43%, respectively.

    The lease rate for an otherwise identical lease of an Acadia SLT-2 FWD is the same, but its residual value is 1% lower.

    When negotiating your deal, make sure to take advantage of the $2,900 cash incentive that is currently available on leases of this truck through GMAC.

    Car_man
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  • Hi joeystiffs19. General Motors is currently providing a $2,900 cash incentive on leases of this truck through GMAC. I don't believe that there is any bonus cash available on it right now, other than for current Toyota and Lexus owners.

    Please see my previous post for information on this truck's April lease program.

    Car_man
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  • Are the rates and residuals the same for a SLT1 FWD for 36 months and 39 months?
  • Hi Car Man,

    Can you please help me better understand $2,900 cash incentive for leases on 2010 Acadias? I'm searching all over the Internet and the only deal that keeps coming up is $2,000 cash back or 0% financing. Where are you seeing the $2,900 cash incentive for leases? It seems like an odd number, is it a combination of two incentives? Also, do you know if GM is offering any additional loyalty incentive (i.e., current GM lessee) toward leases?

    Thanks for all your posts!!
  • bkorol24bkorol24 Posts: 3
    Can you please tell me what the lease residual/money factors are currently for a 2010 GMC Acadia SLE? I am looking at lease for 36/39/48 months and both 12,000/15,000 miles. I appreciate your help.
  • bkorol24bkorol24 Posts: 3
    Hi Car Man,
    Can you please provide the money factor and lease residuals for the following scenarios:
    AWD SLT1 - 39/48 months - 15,000 miles per year
    AWD SLE - 39/48 months - 15,000 miles per year
    I appreciate all your help.
  • Hi evahnulahm. GMAC's April base lease rate and residual value for a 36 month lease of a 2010 GMC Acadia SLT1 FWD with 15,000 miles per year are 0.95% and 41%, respectively.

    The numbers for an otherwise identical 39 month lease are 0.95% and 38%.

    When negotiating your deal on this truck, make sure to take the $2,900 cash incentive that is currently available on leases of it through GMAC into account.

    Car_man
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  • You're welcome, bmwnewbie530i. General Motors does not advertise the cash incentives that it provides on leases, but trust me much like the dealer cash that is runs on Cadillac models that it doesn't talk about the cash is definitely there. GM's lease cash is often an odd number, like the $2,900 on the Acadia or the $2,680 that it has on the Chevy Malibu. It probably sets vehicles' lease rates and residual values first and then use the cash to help arrive at target payments for vehicles, hence the non-round number.

    Car_man
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  • Here you go, bkorol24. GMAC's current base lease rate and residual value for a 36 month lease of a 2010 GMC Acadia SLE AWD with 15,000 miles per year are 0.95% and 42%, respectively.

    The numbers for an otherwise identical 39 month lease are 0.95% and 40%. This truck's 48 month / 15k numbers are 1.85% and 34%.

    If you were to lease one with only 12,000 miles per year, its residual values would be 2% higher.

    As I mentioned in previous posts, when negotiating your deal, make sure to take advantage of the $2,900 cash incentive that is currently available on leases of this truck through GMAC.

    Car_man
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  • Hello bkorol24. I think that the information that you are interested in is available in the previous couple of posts that I just made. Good luck and let me know if you need anything else.

    Car_man
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  • saaber1saaber1 Posts: 31
    hi carman,

    i got this from a northern NJ dealer. i think it's overpriced and believe i can do alot better. the dealer says good luck.

    SLT-1 AWD with no additional options including no nav or rear entertainment
    12K miles per yer
    $0 cap cost reduction
    taxes included
    36 mos

    $1,000 Down (includes 1st month payment and MV fees)
    payment is $645
    Residual is 46%
    Money Factor is .00040
    MSRP is $42,785
    Invoice price is $41,196
    Your price is $41,696.

    thanks alot!
  • bkorol24bkorol24 Posts: 3
    Thanks for your help carman. Unfortunately, we are now into May and I know the lease deals have changed. My understanding is that there is $3,300 cap cost reduction on the SLE AWD. Can you please let me know what the residuals are for 39 month/48 month with 15,000 miles per year.
  • ccracinccracin Posts: 3
    edited May 2010
    Hi carman, I have to say the information you provide is outstanding. I currently have an Outlook XR AWD lease coming to an end in June. I am interested in the current lease factors and residuals for the Acadia SLT1 and SLT2 AWD's. I would be interested in 12K and 15K 36 month leases. We are able to use the GM employee pricing if it makes sense. Any information you can provide would be helpful. I am in southwestern PA. Any incentives? Thanks for any information you can provide. I will be posting the same questions in the Traverse forum.
  • Hi saaber1. If the dealer is subtracting the $3,300 cash incentive that General Motors is providing on leases of this truck through GMAC from the $500 over invoice price that you were quoted this is a pretty good deal. If the dealer is pocketing the three grand, then this is a terrible deal.

    Car_man
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  • No problem bkorol24. The $3,300 cash incentive that you mentioned is correct.

    GMAC's May base lease rate and residual value for a 39 month lease of a 2010 GMC Acadia SLE AWD with 15,000 miles per year are 1.55% and 39%, respectively.

    The numbers for an otherwise identical 48 month lease are 2.45% and 35%.

    Car_man
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  • Thanks ccracin :) . Here's the information that you're looking for.

    GMAC's current base lease rate and residual value for a 36 month lease of a 2010 GMC Acadia SLT1 AWD with 15,000 miles per year are 1.55% and 42%, respectively.

    The lease rate for an otherwise identical lease of a '10 Acadia SLT2 AWD is the same, but its residual value is 39%.

    Increase the above residual values by 2% for leases with only 12,000 miles per year.

    When negotiating your deal, make sure to take advantage of the $3,300 cash incentive that General Motors is currently providing on leases of this truck through GMAC.

    Car_man
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  • Carman, if I may, can you please give me the lease rate and residual for an 2010 Acadia SLT1 AWD with the spring special package option. Also, I have been to 2 dealerships and both were pushing the lease with US Bank as opposed to GMAC. I have always financed through GMAC. Is this something new? Are the dealerships pocketing the $3300.00 cash incentive? Please help! Thanks!
  • I just got word from a dealer. SLT1 AWD w/ spring special pkg.
    39 months, 12k miles. $2500 out of pocket. $643.46 per month
    Residual vale 40%, Money factor 1.55% he thinks. I did my math on a lease calculator and I get $608.57. In addition, why is the vehicle valued so low at 40% residual? When the number on here reflect higher? ( I assumed it would be around 42-44%)
  • 2010 Acadia AWD SLT-1 with Spring Package, NAV/DVD, Rear Entertainment, Black Color, and Advanced Remote Start.
    Total MSRP = $46,650
    Negotiated Price = $40,650
    No money down, 36 mo., 12k lease, before tax = $607.81
  • Hey joeystiffs19. GMAC's June base lease rate and residual value for a 36 month lease of a 2010 GMC Acadia SLT1 AWD with 15,000 miles per year are 1.55% and 42%, respectively.

    I'm not sure why dealers would push the US Bank lease over the GMAC lease. Perhaps the US Bank lease results in a slightly better monthly payment.

    I'm sure that dealers will try to pocket anything that they can, I certainly would if I was in their situation. The fact that you know about the $3,300 cash incentive on leases puts you in a much stronger bargaining position.

    Car_man
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  • rju103rju103 Posts: 10
    2010 SLE w/AWD. Sticker Price is $37,335. Lease offer is $498/month, 48 months - this includes all taxes. Without the inclusion of tax, the cost per month is approx. $452/month. Had the dealer extend the bumper to bumper warranty by a year to 48K/4YR. Downpayment (tax, title, registration, etc.) - $1259.

    Looking to add the rear set DVD player (drop down, not the headrest version) after the fact.

    Is this a good deal?
  • Hi Car Man, Is the lease rate and residual value for an Acadia SLT-1 FWD different from the AWD version? Could you confirm those FWD and AWD numbers for June for 12,000 and 15,000 miles per year? Also, is the $3300 cash incentive still applicable and does that come right off the top of the negotiated price of the car?

    Thank you so much for any input. My '08 Acadia was just totaled last week and I need to make a quick decision on a replacement vehicle.
  • dave_63dave_63 Posts: 1
    2010 AWD Acadia SLT 2 with all options (DVD, entertainment)
    36 month
    12k miles

    MSRP - $48,540

    $45,427 (including DMV, deposit, destination)
    $43,967 (including destination)
  • Hi baseballmom97. GMAC's current base lease rate and residual value for a 36 month lease of a 2010 Acadia SLT1 FWD with 15,000 miles per year are 1.55% and 41%, respectively.

    The lease rate for the AWD version of this truck is the same, but the residual value is 1% higher.

    I believe that GMAC's residual values for leases with 12,000 miles per year are 2% higher than its 15k residuals.

    The $3,300 cash incentive is still available on leases of this model through GMAC, but don't just assume that the dealer will automatically deduct it from your negotiated selling price. Make sure that they take it into account.

    Car_man
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  • Hi dave_63. Let's take a look at this deal. You were quoted a discount of $4,573 on this truck.

    There is probably a gap of around $2,600 between its full MSRP and its dealer invoice price. Add the $3,300 cash incentive that General Motors is currently providing on leases of this truck to that and there is a total of around $5,900 to play with during negotiations.

    That puts the selling price that you were quoted at around $1,350 over invoice. If I was in the market for an Acadia right now, I personally would shoot for $500 to $1,000 over invoice. It would be in your best interest to comparison shop a little.

    Car_man
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  • Thank you, Car Man. I really appreciate your quick response! You really provide an invaluable service!
  • You're very welcome, baseballmom97. I'm glad that I was able to help you out.

    Car_man
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  • jstewie23jstewie23 Posts: 14
    Has anyone heard about the July lease deals/info? One dealership I am working with says they don't even know what the residual values will be on the 2011s.

    We were looking for a 3yr/36k lease for a 2010 SLT-1 AWD black with nav and they said they can't find them but they have them for 2011, but no finance info.

    Any info would be great...thanks.
  • Hello jstewie23. General Motors is not scheduled to introduce its new July lease program until some time tomorrow, July 7th.

    Please feel free to check back with me in a day or two and I will be happy to fill you in on the details of the new program.

    Car_man
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  • Car man your info is priceless... Do you have any updates on the new July lease program and cash incentive offers for the Acadia?
  • eric1973eric1973 Posts: 15
    Carman-
    Do you have any info on 2011 Acadia programs. I was at the dealer today and he told me that a 2011 Acadia SLT-1 with NAV, RES and Sunroof (MSRP $45,740) would have a residual of 49% and a MF of .00045 on a 39 month/ 12k lease. However, he quoted me $1262 down and $676 a month for the vehicle including all TTL. What do you think? Are there any incentives on the 2011 or holdbacks I should know about? Does the MF and residual sound right to you?

    Based on his #'s and a 7.4% sales tax in NJ (MSRP is over 45K) the monthly payment numbers work out to exactly MSRP! Am I missing something? Any help would be appreciated.
    Thanks for your help!
  • michaelj7michaelj7 Posts: 5
    Hello Car Man,

    Does this deal sound reasonable?

    2011 - GMC Acadia SLT-2
    MSRP - 49,750
    Purchase Price - 47,410 I am told this is invoice
    Residual - 48%
    Money Factor - .00045
    Term - 39 Months/12K miles per year
    Sales Tax - 7%
    Payment - $684.10
    Total Due at Signing - 2019

    I appreciate the help.
  • michaelj7michaelj7 Posts: 5
    As an aside, when I price the vehicle on Edmunds, the invoice is 46,592. It appears my purchase price of 47,410 is actually 818 over invoice. Is it safe to assume the dealer's information is inaccurate?
  • aiduaneaiduane Posts: 15
    Looking for lease figures for 39 month 15k miles SLT1 AWD 2010 or 2011

    The dealer I stopped at over the weekend quoted me:
    2010 - 40%, .00020, plus $3000 rebate
    2011 - 48%, .00045, plus $1000 rebate

    Can anyone confirm these are the rates/incentives for July?
  • mfine416mfine416 Posts: 9
    Does anyone know the residual and rate/mf on a 48 month/48,000 mile (12k per year) lease on a 2011 Acadia SLE with tow package and heated seats?

    I was quoted $484 a month with $2600 first payment/due at signing from two different dealers. The MSRP is $38015 and we have 8% sales tax (on full price not just lease payments). The dealers did not quote me the cap cost, the residual, or the rate/mf yet so I am having a hard time evaluating the deal and knowing how much room I have to negotiate and where.

    Thanks
  • aiduaneaiduane Posts: 15
    mfine416 - I dont know the numbers for the SLE or 12k, but for a SLT AWD 48month/60,000 mile they quoted me 43% and .000095..
  • mfine416mfine416 Posts: 9
    Thanks for the info aiduane. Based on those factors the, SLE for 48/60 should be $426 for 60k and $411 for 48k, not $484 for 48k. Sounds like I have a lot of room to negotiate, perhaps they are holding onto the cash back incentives. FWIW, I assumed the factor was .00095, I think you have an extra 0 in there. If not the payment should be even lower, but that would be something like a 0.23% APR which seems low given the residual and the cash back incentives.
  • mfine416mfine416 Posts: 9
    Ahh the joys of car shopping.

    So, the leases I have been quoted are US bank leases with a residual of 44% (actually just a touch under) and a money factor QUOTED to be .00095 for 48 months, 12K miles per year. When I back out the payments (I am a finance professional who is not going to accept their numbers as face) I find that the dealer is jacking up the interest on the lease by about 1.0% to a money factor of .00138. Cute! So, in addition to the few hundred over "invoice" they are also getting a holdback from GM and another $1000+ hidden into the financing. Two different dealers are playing exactly the same game. It seems like they probably have a pretty good idea what the local competition is offering for Internet quotes.

    For a GMAC lease on the same car, they are quoting a residual of 41% and a APR interest rate of 4.5% (mf of .00188). Again this is what they are telling me the rate is, not what the rate really is. I did not get a payment quote for the GMAC lease, but I would be surprised if they were not adding the extra $1000 into that one as well. Is the GMAC lease worth the extra money, or is US bank that bad that I should avoid them?

    FWIW, both leases include a $1000 GM incentive on 2011's. It seems like they are trying to keep that for themselves by jacking up the interest rate. The 2010's have a larger "cash back" incentive, but the residuals are lower so the payments come out to about the same if you can even find a 2010 you are happy with. It does not seem to make any sense to pay the same amount for a 2010 as a 2011, unless you plan on buying it out at the lower residual in 4 years, and in that case you should think about whether a lease makes sense for your situation.

    Just wanted to post this info so others new what to expect and what traps to look out for. I will let you know how successful I am at negotiating the rate back down to .00095 and or getting the purchase price down.
  • eric1973eric1973 Posts: 15
    I just leased a 2011 Acadia SLT-1 AWD in NJ. The MSRP was $44250. I ended up paying $1088 down as an out the door payment and $608/ month including all fees, taxes etc.. I had a very difficult time working with the GMC dealers in NJ and this was the lowest I could do. I was also eligible for the conquest rebate. They refused to actually go through the numbers ( and therefore they didnt break out the taxes and fees in the lease docs) and I needed a car ASAP. I am confident I could have gotten the car for less but the dealers got the best of me. The dealers seemed like they didnt even want to sell cars!
  • delta737hdelta737h Posts: 625
    mfine416,

    I don't mean to be a wise guy buy when you make a statement like...

    "When I back out the payments (I am a finance professional who is not going to accept their numbers as face) I find that the dealer is jacking up the interest on the lease by about 1.0% to a money factor of .00138."

    It suggests to me that you might not understand how leases are structured or how payments are calculated. It is extremely unlikely that the dealer would disclose a 0.00095 money factor and then jack it up to 0.00138. That's a real stretch. The part that's especially troubling is the beginning part of your statement...

    "When I back out the payments..."

    This doesn't make sense. In order to confirm the money factor, one needs to know the payment, adjusted cap, residual value, and the term.

    Also, GMAC leases are different than bank leases primarily for two reasons...

    (1) GMAC SmartLease uses an interest rate in lieu of a money factor and

    (2) GMAC discounts the residual one month nearer to the present causing the payment to inflate slightly. See post #242 at

    http://townhall-talk.edmunds.com/direct/view/.f134cca/241#MSG242

    if you're interested.

    You also stated...

    "FWIW, both leases include a $1000 GM incentive on 2011's. It seems like they are trying to keep that for themselves by jacking up the interest rate."

    Anyone that knows how to structure leases and compute payments, with spot-on accuracy, would be able to determine this in a heartbeat because they can account for every single penny in a lease. In fact, if you give them a blank lease contract (e.g., GMAC, US Bank), they can easily complete it themselves.

    Car shopping can actually be an enjoyable experience provided consumers understand the process and how the financing mechanisms (e.g., leasing) work.

    John
  • aiduaneaiduane Posts: 15
    I wish they would just be straight up and no BS...on the Acadia I am shopping for, I keep coming up with diifrent numbers than they do. I have used the lease calculator on here, on leaseguide and i have even written my own excel spreadsheet to mirror the lease contract on a Infinity G I just leased last week to account for the fact that NJ makes you pay your sales tax in full, up front, which they add to your capitalized cost (unless you pay it in your upfront fees).

    So with my Acadia, I had the MF, Residual, and Capitalized Cost, but still could not get my figures to be close to theirs...finnaly, after demanding an explanation, they disclosed a $895 inception fee that was being added to my lease contract as additional capitalized cost! This angered me as from the beginning I explained that I wanted to pay all fees up front.

    Now for the icing on the cake...I was trying to get a payment between $550-575 for a basic AWD SLT1, no other options, they have one with the sunroof so the payments are coming in over $600...they came back with a payment under $600, but with an increased upfront cost...they added a capital cost reduction to bring my monthly payment down...hello...?

    They also told me the $1000 consumer cash is not avaialble on leases and I believe they are using US Bank to finance the car, not GMAC as my figures match the posts above.

    So...does anyone know what the inception fee is for a US bank lease compared to GMAC?

    Does anyone know if you CAN use the $1000 cash to consumer that was available if you lease and if you lease from US Bank?

    I wan't going to do this all no as i have till 10/15 on my existing Murano lease and I still have plenty of miles...but they were pushing me for month end..well it came and went and now maybe I'll just wait?
  • aiduaneaiduane Posts: 15
    One more question...what is a fair deal on a 2011 Acadia AWD SLT1 in refrence to invoice? $500 over? $500 under? please let me know not including any incentives...edmunds and trucar show different deler invoices for the same car so not sure which is right?
  • Thanks millertime2. GMAC's current base lease rate for a 36 month lease of a 2010 GMC Acadia is 2.0%.

    General Motors is currently providing a $3,600 cash incentive on leases of the '10 Acadia through GMAC.

    Car_man
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  • Hi eric1973. GMAC's current base lease rate and residual value for a 39 month lease of a 2011 GMC Acadia SLT1 FWD with 12,000 miles per year are 3.0% (approx .00125) and 49%, respectively.

    You never mentioned the selling price that the dealer is charging you for this truck. That is a very important number to know. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without this number, it is more difficult to tell how large a dealer discount you are being given. Find out what the selling price is and let us know. I'm sure that either myself or another knowledgeable community member will let you know what they think.

    Car_man
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  • delta737hdelta737h Posts: 625
    edited August 2010
    aiduane,

    The best safeguard against being taken by dealer BS is to educate yourself about leasing. Learn the vocabulary, learn how to compute payments, learn how to compute sales tax in your state, and understand what happens on both the front-end and back-end of a lease.

    A HUGE factor that is often overlooked in lease transactions is the sales tax calculation. On October 1, 2005, New Jersey joined a 22 state coalition and bought into the Streamlined Sales and Use Tax Law. The key points governing sales tax treatment given to motor vehicle leases in New Jersey, under this law, are briefly summarized in the following document…

    http://www.state.nj.us/treasury/taxation/streamfaqs.shtml

    This document describes the two methods for computing sales tax in NJ:

    (1) tax rate x manufacturer’s invoice price (Item 7) and;
    (2) tax rate x total taxable lease payments; otherwise, known as the total payment
    method (Item 8)

    Either way, you can roll the tax (finance) into the lease (see below). More than likely, you’ll want to opt for (2- total payment method) as it is usually the cheaper of the two methods.

    The best way to illustrate the sales tax calculation methodology and, subsequent lease payment calculation, is to use a concrete example. Because the first method is straight forward, I’ll describe the second using a hypothetical example. What follows is somewhat long-winded, so please hang-in. Consider a lease, originating in NJ, with the following data…

    Adjusted MSRP………….…… 22,800
    Sell Price (S)...…………….…... 20,000 (negotiated)
    Acq. Fee (A)…………….…….. 650 (Acq Fees are taxable in NJ)
    Trade Equity (Q)...………..…… 500 (we’ll assume financed negative equity- NOT taxable in NJ)
    Cap reduction (D)…………...… 600 (assume $600 cash down- taxable in NJ)
    Cap reduction: trade credit (T).. 1,000 (assumed trade-in allowance- NOT taxable in NJ)
    Money factor (F)………………. 0.00020 (assumed)
    Residual Factor………………. 0.68 (assumed)
    Residual Value (R)…………. 15,504 (Residual Factor x Adj. MSRP)
    Term (N months)....…………. 36
    NJ Sales Tax Rate (t)………… 7.00% (assumed)
    NJ Sales Tax (X)................... _____ (to be computed... see below)

    Note that the entire trade-in value of $1,000 is non-taxable in NJ; regardless of the fact that a $1,500 loan balance remains outstanding producing negative equity in the amount of $500.

    Taxable Payment = F x (C + R) + (C – R) / 36

    For purposes of computing the taxable payment, the adjusted cap cost is...

    C = S + A - T - D
    = 20,000 + 650 - 1,000 - 600
    = 19,050

    Taxable Payment = 0.00020 x (19,050 + 15,504) + (19,050 – 15,504) / 36
    = 105.41

    NJ Sales Tax Payment Liability = X = Total Payment Tax
    = (t x N x Taxable Payment)
    = (0.07 x 36 x 105.41)
    = 265.63

    This tax, of course, is due and payable at lease inception. However, if you wish to capitalize it in the lease, the dealer simply adds it as an amount financed and remits the tax to NJ.

    The taxable payment is NOT the "lease payment". It's only purpose is to compute tax liability and is, therefore, an intermediate calculation. A CASH down payment of $600 made UPFRONT also triggers an additional sales tax liability in the amount of 0.07 x 600 or $42.

    Now, let's compute the LEASE PAYMENT...

    The new adj. cap cost is C* = S + A + Q - D + X
    = 20,000 + 650 + 500 - 600 + 265.63
    = 20,815.63

    Lease Payment = 0.00020 x (20,815.63 + 15,504) + (20,815.63 – 15,504) / 36
    = 154.81

    Observe that I rolled the acquisition fee (A), negative equity (Q), and taxes (X) into the lease payment calculation. Of course, you can elect to pay these upfront if you like. Also, note that the only role that the trade-in value plays, in this example, is to compute the taxable payment. Beyond that, it's irrelevant and is not used to compute the lease payment. This is triggered by the fact that money is still owed (which the dealer pays) on the trade.

    Your intitial costs, payable at lease inception, are assumed to be the the 1st payment of $154.81, plus $600 down, plus the $42 tax on the $600 down, plus any required security deposit, plus DMV fees and dealer doc fees. These upfront charges can also be capitalized in the lease as well. Whatever you choose to do, you should be able to account for every fee charged; capped or otherwise. And, all calculations must be spot-on!

    You can use the above and apply it to your own situation. For instance, if you don't have a trade or, equity in a trade, simply replace the assigned values above with zero. If you're not putting any cash down, then replace 600 with zero.

    The most important items in any lease transaction are the money factor/interest rate and selling price. You should always try to get the buy rate (money factor with 0% dealer profit- reserved only for those with the very best credit) and negotiate the lowest possible sell price. Check Edmunds for invoice price information and scan the posts to see what others are paying in terms of sell price. Also, check overstock at zag.com for competitive sell price information in your area.

    The GMAC SmartLease acq fee is $795. Not sure what US Bank's fee is. Unless I'm mistaken, the $1,000 cash incentive applies to a purchase only and must be financed through GMAC. GMAC also uses an interest rate where US Bank uses a money factor. I don't know the current residuals used by either but, more than likely, US Bank uses an ALG residual. What I do know is that, apparently, a number of complaints have been levied against US Bank. To wit...

    http://www.consumeraffairs.com/finance/us_bank.html

    Questions? Please let me know.

    John

    PS: Never put money down on a car as it's a depreciating asset. If the car is totaled or stolen and, never recovered, you risk losing a portion or all of your down payment. Down payment means cap reduction and nothing else.
  • aiduaneaiduane Posts: 15
    Thanks John, excellent explanation! Also matches my spreadsheet calulations only I did not have any trade in variables.

    In my case, I knew the cap cost, MSRP, MF and Residual and therefore could figure the payment. Where we were off with the dealer was they hid a $895 aquisition fee into my capitalized cost so their monthly lease payments were higher.

    The mistake I made again was letting them quote me on a monthly payment. They gave me the payment I wanted but hid some of the costs to get there.

    So, one last question for you...I know NEVER to put down any cap cost reduction out of pocket because of the reasons you stated above, but what about the other costs...Doc Fee, Aquisition Fee, Tire Tax, DMV fees, Tax...should they be added to the capitalized cost too, for the same reason? and then you only pay your first payment when you drive off? The lease I am doing has a MF of .00045 (1.08%) since the intrest is so low might I be better off keeping my cash and paying a higher monthly payment?
  • delta737hdelta737h Posts: 625
    aiduane,

    The best way to safeguard yourself from hidden fees is to request the dealer's LEASE WORKSHEET. This is a computer generated document that captures all pertinent data including money factor, residual rate, fees (acq fee, doc fee, DMV, etc), taxes, etc. This helps to eliminate confusion or misunderstanding and is a great tool to help you create a one-page lease proposal.

    I always capitalize everything in a lease including first payment and security deposit (if one is required). The DMV fee is the only fee I pay upfront. Because of the narrow margin between savings rates and borrowing rates, it seems that the prudent thing to do is conserve your cash by folding the fees into the lease.

    Financed fees, of course, increase the lease balance and, therefore, increases the GAP between the lease balance and the ACV (actual cash value) of the vehicle. Because GAP coverage "protects" this GAP in the event the vehicle is totaled or stolen, financing the fees is even more attractive given the narrow spread between borrowing rates and savings rates.

    John
  • Hi michaelj7. Dealer invoice is not a very good deal on a leased GMC Acadia. General Motors is currently providing a whopping $3,600 cash incentive on leases of this truck through GMAC. So leasing it at dealer invoice is really like buying it at more than $3,000 over. If I was interested in leasing a '10 Acadia right now, I personally would want a capitalized cost of at least $2,500 less than this. Of course, the exact selling price that you are able to negotiate will depend upon the availability of this model and the level of competition in your area.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hi aiduane. Here's the information that you're looking for.

    GMAC's August base lease rate and residual value for a 39 month lease of a 2010 GMC Acadia SLT1 AWFD with 15,000 miles per year are 2.0% and 40%, respectively with a $3,600 cash incentive.

    The numbers for an otherwise identical lease of a 2011 model are 3.0%, 46%, and $1,100.

    As you can see, GMAC 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.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • Hello mfine416. GMAC's current base lease rate and residual value for a 48 month lease of a 2011 GMC Acadia SLE AWD with 12,000 miles per year are 4.5% and 43%, respectively.

    When negotiating your deal on this truck, make sure to take advantage of the $1,100 cash incentive that is currently available on leases of it.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
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