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Car Buying Advice - How to compare leasing prices?
I'm a first-time car owner and trying to compare lease prices (vs everything else).
Found a few real price lease calculators that include entering Final Negotiated Price, Final Negotiated Price, Down Payment, Usage Tax, New Car Lending Rate (%), Car Value at End of Loan etc.
I wonder where do I get all this information, as the quote I received from the dealer doesn't include it.
Found a few real price lease calculators that include entering Final Negotiated Price, Final Negotiated Price, Down Payment, Usage Tax, New Car Lending Rate (%), Car Value at End of Loan etc.
I wonder where do I get all this information, as the quote I received from the dealer doesn't include it.
0
Answers
Down payment is up to you. We recommend not putting more than DMV fees and 1st months payment down.
Tax is typically calculated off the lease monthly lease payment but some states calculate tax differently (VA, NY, TX, GA, MN).
Lending rates are called "Money Factors" in leasing. Very similar to a APR but in form of a decimal. I have access to Money Factors but most people have to depend on the dealership.
Car Value at the end of the loan is called a residual value. I have access to residual tables. You take the residual percentage and multiply it by the MSRP of the car you're interested in and that gives you the residual value at the ed of the lease.
The main thing about leasing is to treat the negotiations like you are purchasing the car. The major factor in decreasing the payment is the Sales Price (Cap Cost). I would recommend reading these articles as they will help familiarize you with leasing:
- http://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html
- http://www.edmunds.com/car-leasing/four-ways-to-spot-a-good-lease.html
- http://www.leaseguide.com/lease13/
I also recommend researching the True Market Value (TMV) on our site. The TMV is the estimated average price a car is being sold for (not including tax, title, license, fees, etc.). You can use this to help negotiate on the sales price and make sure you are getting a fair deal. Follow these directions to get the TMV for any NEW car you are interested in:- On www.edmunds.com, at the top of the page, select "New Cars" and then continue to select the Make, Model, and Year for the vehicle you're interested in
- You will now be on the "Overview" page for the vehicle you selected. On the blue banner at the top select "Build" then select the green "Build and Price" button that is right below the color options.
- You will now build and price the exact vehicle you are tying to price.
- On Step 1: make sure you have the correct engine, trim, transmission, etc. selected, then select the orange "Next" button
- On Step 2 is to add options, colors, packages, etc., select the options/features/packages/color you would like then select the orange "Get True Market Value Pricing"
- On Step 3 will show you the "Invoice, MSRP, and TMV price for the vehicle you just built.
- Step 4 is if you would like quotes from a dealership, select the orange "Get Dealer Quotes". If not, don't select anything
As a reminder, the TMV is the average price people are paying for the vehicle you built in your region.Sincerely,