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Toyota Camry Lease Questions
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Comments
I didn't have to put any month down and I got 15K miles a month, so yes, this adds a little to the payment but that's after taxes btw. Also, my quoted payment initially was $259.22 but my credit wasn't perfect. It ended up having my mortgage on it twice...which is WRONG so I didn't qualify for teir 1 credit and I was on the phone today with Experian to dispute it. Still cost me more money b/c of an error from my mortgage company. I checked my credit and my score was almost 750 Sept. 2, 09...so who knows what happened. ?? But that's another story!
So back to my question, are these payments including taxes? As in, you write your check out and the payment each month is........
Thanks for your response. No offense either, I want to hear about some of the deals out there.
I looked at the website: fitzmall.com but I can't find anything for California. It looks like the great deals there are only in FL, MD, PA, VA and DC but this doesn't really help me. Did you get your deal through them? What state are you in?
Good prices nonetheless! Thanks for sharing!
I would like to hear about some other great deals in the state of California, then I can really compare apples to apples. Even then, I'm thinking my deal still could have been better..arrrggg!
Yes, fitzmall is mostly eastcoast, but honestly the deals they give, you could pay shipping and probably still be better off then buying locally.
Also, make sure that the dealer is using Toyota Financial Services' current buy rate lease money factor of .00050 (for consumers who qualify for its top credit tier) to calculate your monthly payment.
Car_man
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Toyota Financial Services' current residual value for a 36 month lease of a 2010 Camry SE with 15,000 miles per year is 63%. The problem is that Toyota's published residual values are for base vehicles. It places restrictions upon what options can be residualized that make it difficult to calculate the actual dollar residual value for specific units, so much so that it provides dealers with a list of the actual dollar residuals for the units that they have in stock.
Car_man
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The problem is that Toyota's published residual values are for base vehicles. It places restrictions upon what options can be residualized that make it difficult to calculate the actual dollar residual values for specific units, so much so that it provides dealers with a list of the actual dollar residuals for the units that they have in stock.
Car_man
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you are correct in your info. But for an 10 SE model, for 12k miles alone, on An SE msrp of around 27400, the residual value was actually around (58.7-59%). So with 15k miles, ur easily 57 or high 56.
Toyota does leasing residuals very differently, and I feel is because, they tell they you they are giving you "extra value packages" at such a discount, but really tho ur getting a deal on the options, they are getting the money back on the lower residuals.
So best bet is to just lease the base models...but ehh.
Can you please post the residual and money factor for Camry SE V6 (24 and 36 months 15k/year),
I am in the Southern California Region 91789.
Thanks!!!
Can you please post the residual and money factor for Camry SE V6 (24 and 36 months 15k/year),
I am in the Southern California Region 91789.
Thanks!!!
For a NEW 2010 Camry V-6 XLE loaded with every option available and an MSRP of $31,475.00 and a sell price of $28,528.00. They want $360/month for a lease with 0 down, 15,000 miles per year for 36 months.
1) is this a good price &
2) has ANYONE bought a NEW Toyaota from Carmax?
Buy it from who ever offers the lowest price. Warranty service is through any Toyota Dealership
As I have mentioned in the past, TFS' residual value percentages are unfortunately fairly worthless. It places restrictions upon what options can be residualized, essentially making its effective residual value lower than the published percentage. Calculating the dollar residual value for vehicles is so tricky that TFS provides dealers with a list of the residuals for the actual units that they have in stock rather than relying upon them to calculate them themselves using the percentages like many other banks do.
Car_man
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I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive.
You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.
Car_man
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Giving $3,250 down (includes all fees, taxes, etc) monthly payment is $179/month.
Giving $2000 down (includes all fees, taxes, etc) monthly payment is $221/month
Also...they offered to take my 2008 Nissan Sentra from me...no questions asked. I have 1 month left on the lease. What do you all think?? I live in Northern New Jersey.
Could you tell me what the residual value and money factor would be for the following lease?
2010 Toyota Camry Base Model - 4 dr. sedan, automatic
36 mo. lease
12,000 miles/yr.
area code 29926
Also, are there any current dealer incentives for my area?
Thanks!
2010 Camry LE V6 w/Moonroof (MSRP Approx $26,000 + taxes)
Cash out of pocket: $460 (DMV fees & 1st month pmt)
$250/month (12,000 miles/year, 36 months)
With all of the information that I provide below, please tell me whether or not I got a very good lease deal on my new 2010 Camry LE:
3 Years/54,000 Mile Lease (I leased the vehicle for 18,000 Miles/Year for a total of 3 years)
The current MSRP of the vehicle is................ $23,035.00
DISCOUNT TAKEN OFF of the MSRP........... $4,432.87
The GROSS CAP COST is........................... $18,602.13
TOTAL DOWN PAYMENT............................. $2,800.00 Down Payment (includes $595.00 GAP insurance PLUS all other fees like taxes, title, bank fees, ect)
FREE REMOTE START ADDED to the vehicle at NO EXTRA CHARGE
TOTAL MONTHLY PAYMENT = $156.01 per month
Is the $156.01 per month lease deal that I just got a good monthly lease deal or did I "over pay" on the Down Payment?
Just so you know, in the beginning, I initially agreed to only give a down payment of $1,500 and with that $1,500.00 down payment, the dealership agreed to give me a lease on a brand new 2010 Camry LE for $169.00 per month for 3 Yrs./54,000 Miles (with 18,000 miles per year in the lease agreement) with a FREE REMOTE START.
With the old $169.00 per month lease deal, I would have added the Satellite radio option and I had agreed to initially pay $498.00 up front out of my own pocket AT DEALER COST for the SATELLITE RADIO.
BUT instead, I only got the FREE REMOTE START and I dropped/deleted the satellite radio option on the vehicle and instead put more money down "up front" on the down payment for the vehicle in order to pay for the $595.00 GAP INSURANCE up front. I did "NOT" want to "roll-in" the GAP insurance into the monthly payments of the lease because the monthly payments would go up to around $170 to $185 per month from $156.01.
So, "without" the GAP INSURANCE my TOTAL DOWN PAYMENT was $2,205.00
The way that I currently structured and did the lease deal "WITH" the $595.00 GAP INSURANCE is by adding and including the $595.00 GAP INSURANCE in my down payment. So the TOTAL DOWN PAYMENT that I ended up giving was $2,800.00.
Did I give too much on the TOTAL DOWN PAYMENT with the GAP INSURANCE "included"? Do you think that I got an excellent deal with the total amount of money I put out for the $2,800.00 down payment and on the $156.01 per month monthly payment that I got on the lease?
The sales and leasing managers at the Toyota dealership where I just leased my 2010 Camry LE told me that I got an "EXCELLENT" lease deal. They ALSO told me that they "NEVER, EVER" wrote up such a low monthly payment lease deal like the one that I just got on a $23,035.00 MSRP brand new 2010 Camry LE vehicle like this. Are they serious or are they joking?
Is the lease deal that I just got really an "excellent deal" or are the sales and lease managers at this Toyota dealership where I just leased my vehicle pulling my leg?
What do you think?? Is this an excellent lease deal or a bad deal that I just made?
I would like to hear your feedback on this.
THANK YOU
$350 a month taxes included 12,000 miles per year in its Long Island,NY residual $19,504, first month and plates down($550)
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I went to a Toyota Dealership here in South Central Massachusetts this evening. I just closed a deal and leased a brand new 2010 Camry LE, 2.5 liter, 4 cylinder, automatic thru Toyota Financial Services.
With all of the information that I provide below, please tell me whether or not I got a very good lease deal on my new 2010 Camry LE:
3 Years/54,000 Mile Lease (I leased the vehicle for 18,000 Miles/Year for a total of 3 years)
The current MSRP of the vehicle is................ $23,035.00
DISCOUNT TAKEN OFF of the MSRP........... $4,432.87
The GROSS CAP COST is........................... $18,602.13
TOTAL DOWN PAYMENT............................. $2,800.00 Down Payment (includes $595.00 GAP insurance PLUS all other fees like taxes, title, bank fees, ect)
FREE REMOTE START ADDED to the vehicle at NO EXTRA CHARGE
TOTAL MONTHLY PAYMENT = $156.01 per month
Is the $156.01 per month lease deal that I just got a good monthly lease deal or did I "over pay" on the Down Payment?
Just so you know, in the beginning, I initially agreed to only give a down payment of $1,500 and with that $1,500.00 down payment, the dealership agreed to give me a lease on a brand new 2010 Camry LE for $169.00 per month for 3 Yrs./54,000 Miles (with 18,000 miles per year in the lease agreement) with a FREE REMOTE START.
With the old $169.00 per month lease deal, I would have added the Satellite radio option and I had agreed to initially pay $498.00 up front out of my own pocket AT DEALER COST for the SATELLITE RADIO.
BUT instead, I only got the FREE REMOTE START and I dropped/deleted the satellite radio option on the vehicle and instead put more money down "up front" on the down payment for the vehicle in order to pay for the $595.00 GAP INSURANCE up front. I did "NOT" want to "roll-in" the GAP insurance into the monthly payments of the lease because the monthly payments would go up to around $170 to $185 per month from $156.01.
So, "without" the GAP INSURANCE my TOTAL DOWN PAYMENT was $2,205.00
The way that I currently structured and did the lease deal "WITH" the $595.00 GAP INSURANCE is by adding and including the $595.00 GAP INSURANCE in my down payment. So the TOTAL DOWN PAYMENT that I ended up giving was $2,800.00.
Did I give too much on the TOTAL DOWN PAYMENT with the GAP INSURANCE "included"? Do you think that I got an excellent deal with the total amount of money I put out for the $2,800.00 down payment and on the $156.01 per month monthly payment that I got on the lease?
The sales and leasing managers at the Toyota dealership where I just leased my 2010 Camry LE told me that I got an "EXCELLENT" lease deal. They ALSO told me that they "NEVER, EVER" wrote up such a low monthly payment lease deal like the one that I just got on a $23,035.00 MSRP brand new 2010 Camry LE vehicle like this. Are they serious or are they joking?
Is the lease deal that I just got really an "excellent deal" or are the sales and lease managers at this Toyota dealership where I just leased my vehicle pulling my leg?
What do you think?? Is this an excellent lease deal or a bad deal that I just made?
I would like to hear your feedback on this.
THANK YOU
I just closed a deal two days ago on a Camry LE with leather upgrade on a 3 year / 36,000 mile lease.
Got the Camry LE w/ leather upgrade for 20,787 which was 300 below invoice. Money factor = .00050 with residual of .69.
Put $2850 down on a trade in plus they gave me $1,000 for college incentive.
Payment came to $158.
White SE V6 with Leather Package
$329 a Month for 36 Months/12,00 miles
paid $669 up front for first month payment and the Reg/Dmv/Other Fees.
what do you guys think about this deal?
Got an offer for 262$ per month on 2010 Camry XLE, plus 1000$ down payment.
This is not the V6, but it does have a GPS package, leather heated seats, etc.
Is it a good deal? I am in PA, zip 19382. Are there any hidden costs I should watch out? When is the best time to close the deal?
Please advice.
Thank you in advance!
I think that the end of the month is the best time to close the deal. How many miles per year are you getting for the $262 per month lease payment on your 4 cylinder Camry XLE? It seems that you got nice options in the vehicle that you chose, but the biggest thing is the annual mileage that you are going to lease it for.
I leased my 2010 Camry LE for ONLY $156.01 per month for 3 years/ 18,000 miles per year and I put a $2,800 down payment which included the Gap Insurance in the down payment. I got an excellent deal considering that I can drive 18,000 miles per year with my vehicle.
Also, there are NO other hidden costs in my lease.
Thanks
I think that the car will be worth $13,500 after 3 years/54,000 miles. I can buy the vehicle for a little bit under or around $14,000 if I want to after the lease is up. The price of the vehicle at the time that the deal was made for the lease was $18,800. The MSRP sticker price for the car which I leased was $23,085.
I got $4,285 OFF the MSRP price of the car at the time of the lease.
The mileage we discussed was 12K per year.
In another dealership the best offer was 299x36 plus 1000$ down (incl. lisence and registration), with no additional costs.
Also - the 2010 4 cyl XLE is a loaded one (leather, Nav)... Doesn't include Gap insurance though...
What do you think?
The mileage we discussed was 12K per year.
In another dealership the best offer was 299x36 plus 1000$ down (incl. lisence and registration), with no additional costs.
Also - the 2010 4 cyl XLE is a loaded one (leather, Nav)... Doesn't include Gap insurance though...
What do you think?"
quankop,
I am located in Massachusetts.
This is what I would do if I were you:
Go into the dealership and start the negotiations process by telling them that you want to lease a BRAND NEW 2010 Camry LE. Whatever you do, do NOT be excited about the car. Just tell them that you want a point a to point b vehicle. The dealer will ask you what you are looking for in a car. Tell them that you want the 2010 Camry LE. ALSO tell them that the MOST IMPORTANT thing about the car is the MONTHLY PAYMENT that you will be paying for the monthly lease. Whatever you do, do NOT get excited about the car. The LE comes with all the power features. Do not get the extra stuff like the NAV and the sunroof. These extras just inflate the cost of the car. Also, do not get the XLE. The XLE is the same exact vehicle except that it has the wood trim and the leather option in it. Again, the price of the vehicle gets inflated if you select the XLE.
ALSO, whatever you do, do NOT let the dealer try to convince you to get a DEMO. Tell them that you want a BRAND NEW 2010 Camry LE from their lot. Tell them that you want to pick one out from their lot once you work out the lease deal with them. The dealer will have plenty of Camry vehicles for you to pick from so don't worry about getting excited to go out on the lot to pick one out right away. Whatever you do, work out the lease deal first, THEN go out and pick out your Camry. That's how I did it. The dealer was trying to get me to lease a 2010 Camry LE Demo and I told him that I was not interested in a demo. I wanted to lease ONLY a brand new 2010 Camry LE from his lot. This method will show the dealer that you are not excited or hooked only on one Camry vehicle and it will allow them to concentrate more on trying to work closely together with you so you can get the BEST possible lease deal. That's how I did it and it worked for me 100%.
When the dealer asks you how much you are looking for a monthly lease payment, tell them that you do NOT want to pay anymore than $150 per month. BE STERN about this and BE SERIOUS and BE NICE about it too. Tell the salesman that you are NOT here to waste his time or yours. Make sure that you tell him that you are serious in trying to work out a deal with him TODAY.
When the salesman asks you how much you want to put down tell them that you are willing to put down $1,000 for the lease. ALSO tell the salesman that you want the lease to be 18,000 miles per year for 3 years. Whatever you do, stick with the 18,000 miles per year for the annual mileage. The salesman is going to go to the sales manager to give him your offer. The sales manager is probably going to reject your offer, but do NOT worry. If that happens, whatever you do try to keep the deal open.
If your first offer is rejected then tell your salesman:
"Look, what if I put an extra $500 down?" That's what I told my salesman and I got my current lease deal. Tell them that you still want to somehow work out the deal with them and that you still want to pay only $150 per month and the 18,000 miles per year for 3 years, but this time around you want to put down an extra $500 to make the down payment $1,500 in order to make the deal for the monthly lease payment work at $150 per month. The salesman is going to go back again to the sales manager. When the sales manager comes over to you be nice about everything and tell them that you are serious about wrapping up the deal RIGHT NOW (Today) and that you want to close the deal. The sales manager will come back with a counter offer. When the counter off comes back from the sales manager, tell him that you are in disagreement with it. THEN increase your monthly payment and tell them that you are willing to go up on the monthly payment, BUT NO MORE that $165 per month. Stick with the 18,000 miles per year annual mileage.
That's how I did my lease deal and the sales manager wrapped up and closed the deal with me at $169 per month with 18,000 per year. I spent over 3 hours at the dealer. I went to the dealer about 2 hours BEFORE he closed on a Friday. I was very nice and very humble about everything and I got an excellent lease deal from them.
After the sales manager agreed to do the lease deal for me with $1,500 down, I offered to put down an extra $500 to bring the monthly payment down to $156.01. Once you get the sales manager's approval on the deal you can put a few bucks more down to decrease the monthly payment $15 to $20 per month if you like. That's what I did.
After you wrap up the lease deal, the salesman will bring you into the finance manager's office so they could do the paperwork for the lease. While you are inside the finance manager's office the finance manager will ask you if you want GAP INSURANCE on your vehicle. At the time, I didn't know that I could get Gap Insurance from my own insurance company for much less money and I purchased the Gap Insurance thru the dealer for $500. The Gap Insurance from the dealer is really $700, but they gave it to me for $500 and I bought it. I did NOT want to add the Gap Insurance to my monthly lease payment so I put down $500 more to pay off the Gap Insurance for the car. I put down a TOTAL of $2,800 for EVERYTHING to get the deal that I got.
If you go to your own auto insurance company you can get the exact same Gap Insurance for an extra $50 per year ($50 x 3 years = $150 total cost for the Gap Insurance thru your own insurance company). I didn't know this at the time, but I would have not had to put an extra $500 dollars down for the Gap Insurance if I had purchased it from my own insurance company. The next time that I lease I will know this and I will purchase the Gap Insurance from my own insurance company. The dealer will NOT tell you this or make you aware that you can buy Gap Insurance from your own auto insurance company. But now you know so get the Gap Insurance separately from your own insurance company.
This is EXACTLY how I structured my negotiations for my lease deal and that's how I was able to get the $156.01 monthly lease payments with the 18,000 miles per year for 3 years. If you structure your negotiations just like I did you will be able to get the same deal. Just take your time and copy my negotiation deal that I mention here. You should be able to get the same exact lease deal like I did with the 18,000 miles per year for 3 years. Take your time negotiating. Don't look desperate and be nice all the way thru the negotiations. It took me over 3 hours of back and forth negotiations to get the deal that I got. I tried to make the process fun. Tell me how it goes.
I just gave you detailed instructions in the previous post above here regarding how I structured my negotiations when I went to the Toyota dealer to do my lease deal on my brand new 2010 Camry LE.
You need to copy and duplicate my lease deal and try to get the same exact deal as I did. You should be able to get the same exact deal like I did with the same exact monthly payment and mileage terms if you copy and duplicate my negotiation process. Please let me know how things go with everything after you do your lease negotiations. I am rooting for you to get an excellent deal on your 2010 Camry LE.
Let me know how things go for you.
For me, it is a smarter and a wiser move to put down a down payment because I LOWERED my payment by $69 each month. If I did the lease deal with $0 down I would have to pay MORE each month. I would rather give some money down up front and have smaller monthly payments each month. If the vehicle gets totaled then YES, I would lose the $2,300 that I put down PLUS I would lose the other $500 that I put down for the Gap Insurance.
I look at it this way:
If I hadn't leased and if instead I had purchased a vehicle, I would STILL had to put some money down. And with this same scenario, if my vehicle which I purchased to own were to get totaled, I would STILL lose all the money that I put down to purchase the vehicle. The down payment would be gone. If the vehicle had any equity in it, I might get some money back from the insurance company, but for the most part, all or most of the money that I put down for the vehicle would be gone and unretrievable. The same goes for my lease. You never can win when it comes to making up for the down payment when you lease or buy if your vehicle gets totaled. Especially in a situation when you are in an "upside down" situation when you "own" the vehicle. Either way, it's a gamble. I'm NOT going to worry whether or not my lease vehicle gets totaled.
I am not the type of person who wants to work for the car payment. I am a big skin flint and a cheap-skate and I want to have "affordable" and "comfortable" monthly lease payments for the next 3 years. That's the ONLY reason WHY I used a down payment to lease my Camry.
At the end of 3 years, I will lease another Camry and do the same thing.
1) You might then consider a program Toyota offers (or, at least, offered not long ago) to prepay ALL lease, with zero monthly payment.
2) It is not true that you have to put money down on a purchase, you actually can finance 100%.
3) Can anyone explain why would one buy the Gap insurance at all when putting money down? I understand why you need Gap if you sign and drive. But with such high downpayments you are not, probably, going to be upside-down anyway, at least not on Toyota, at least not significantly (esp. compared with the Gap premium you already paid).
GAP insurance is included on nearly every lease except Toyota's. They don't include it as a way to scam more money out of you during the lease negotiations. Do you honestly think you are going to be upside down on your Toyota the day you drive it off the lot? If so, it's because you negotiated a terrible deal.
Not sure why you kept debating putting money down on a lease vs buying. I never said anything about buying.
thats another reason why you don't ever lease longer than the warranty period for a car, that means 3yrs for the lower divisions and 4 yrs for the luxury divisions
thats what annoys the crap out of me with Nissan, they keep advertising leases and people buy into them for 39 months, but last time I checked, Nissan's warranty is only 36 months - so for 3 months you'll be out of warranty and pay for 4yrs of DMV fees and registration
but, if you love the car and decide to buy it out at the end of the lease then nothing I just said would matter, but personally I would never do more than 15k miles/yr on a lease
chuck68516,
I see what you mean, but if I didn't use the $2,000+ that I put down "UP FRONT" to pay for a higher monthly lease payment everything would STILL come out the same dollar-wise spent over the 3 year period of the lease for the lease payments. I wouldn't be paying more on the lease. Either way, I decided that I wanted to put money down ONLY because I wanted the monthly lease payments to be low for me. I do NOT like paying over $200+ per month for 36 months STRAIGHT for a car.
For you, putting down $2,000+ for a lease might be flushing it down the crapper, but for me it's a way to REDUCE the monthly lease payments for 36 months straight. At the end, the total payments that I would make for the 3 year lease on the deal come out the same dollar-wise.
thats another reason why you don't ever lease longer than the warranty period for a car, that means 3yrs for the lower divisions and 4 yrs for the luxury divisions
thats what annoys the crap out of me with Nissan, they keep advertising leases and people buy into them for 39 months, but last time I checked, Nissan's warranty is only 36 months - so for 3 months you'll be out of warranty and pay for 4yrs of DMV fees and registration
but, if you love the car and decide to buy it out at the end of the lease then nothing I just said would matter, but personally I would never do more than 15k miles/yr on a lease"
smarty666,
I'm NOT worried about the 18,000 miles per year that I am going to put on the car. I feel that I got an excellent deal on the lease, so the 18,000 miles per year doesn't bother me. If the Toyota Warranty runs out after the 3 years/ 36,000 miles and if I need to do any repairs to the vehicle then I am responsible for any repairs. I already know that. Toyota vehicles for the most part are trouble-free and I highly doubt that the Camry that I leased will need anything more than tires and brakes after 36,000 miles. I take care and maintain all of my vehicles, so the chances of needing any major repairs after 36,000 miles is very slim to none.
Also, I have no intentions of buying the vehicle that I currently lease. When the lease is up, I will either lease another vehicle or maybe purchase a vehicle. The decision will depend on what types of deals are going to be out there 3 years from now.
So far, I am very happy that I leased and that I didn't have to fork out many thousands of dollars to put down for a new car and still have astronomical $350+ monthly car payments for 5+ years. Being a skin-flint like I am, leasing was the cheapest way to go for me.
Thank you
MSRP: $28,892.0
LEV:$18,006.00
LEV%:%62.32
Down Payment: $2000.00
Money Factor:0.00050
Monthly payment $294.01
Is it worth it? Thanks!
Msrp 31693.
cap cost is 100 over inv = 28980
$400 / mos for 24 mos. $850 down
Thoughts?
Thanks in advance.
Plus it goes against the whole point of leasing. You don't throw $2000 at the car rental guy do you?
It is not the whole point of leasing, not to pay any money until you absolutely have to. One usually doesn't mind to make a downpayment on a loan, or cut the loan term short to save on the interest. The situation is not much different here. The comparison to the rental is not entirely accurate: if I rented for 36 months and if they charged me interest, I would throw $2k at the rental guy.
The only difference (in financial terms) between a lease and a loan, and the whole 'financial' point of leasing, is that you pay only for the part of a car which you actually use (~40-45%), and don't lock your cash in that part of a car which you never use but rather trade-in every time you change a car (residual value,~55-60%). How exactly do you handle this, it's of minor importance. Naturally, you try to lose as little money as possible in the process, and prepayment is legitimate, although carries some risk.
Probably, for many people the whole point of leasing is not even financial, it is the convenience of a guaranteed no-haggling riddance of the old vehicle.