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thanks again
Print it and tell them to match it or you will drive to Ohio and get it there. They don't need to know you have no desire to go to Ohio. Tell them you go there every year for Christmas anyway. After all they lie all the time.
Heres is the Voss deal and how I think the formulas work. If you wish you can adjust the down payment and get different monthly rates such as a rate with zero down and the loan acquisition fee included in the capital cost (which I think equates to $317/mo or so)
But for the 1999 down (capital reduction) deal
here is how a lease is calculated
MSRP is $30,435
Voss Discount is $2492
MSRP-discount = sale price = 27,943
in this case down payment is $1999
so capital cost to lease is 27943-1999=25944
quoted residual is 18,262
How the payment breaks down
depriciation portion of the payment is (25944-18261)/42 month lease term = 182.93 per month
interest portion of the payment is (25944+18261)x.00149 money factor= 65.87
you pay interest on the average. That is why you add the two numbers together
total payment is $182.93 + $65.87 = $248.80
With this deal $3262 is due at signing. I think the breakdown is something like this
Downpayment = $1999
Documentation Fee is $100
Loan acquisition fee is $595.00
Tag and Title is $20
1st month payment is $248
security deposite is $300
even though they say $3262 is due at signing. I think also tax is due on the down payment and the 1st month payment and is not in the 3262 number.
once again this is my assumpton of the breakdown I have not talked to them yet.
Are they giving you 36,000 miles on this 42 month lease or 42,000 since it is a 3 1/2 year lease? I would also negotiate mileage to 42,000 if it is not offered.
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While manufacturers do allow the residualization of most options, taxes and fees other than your vehicle's destination charge usually can not be residualized.
I am not personally all that familiar with what the market is like for the S4 right now, but you definitely can do better than $200 under MSRP for one. You may be able to find a few S4 shoppers and owners in the following discussion who can give you an idea of what you should pay for this car: "Audi A4: Prices Paid & Buying Experience" .
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I would be more than happy to try to work up a sample lease payment on this car for you, but something about the pricing that you provided me with does not make sense. You stated that this car has a "Sticker price" of $31,587 and a "Sale price" of $33,587. By sticker price I suspect that you mean MSRP. The selling prices of leased vehicles are negotiable, so there is no way that you should be paying over full MSRP for one. Double check these numbers to make sure that you have them right. Perhaps you just reversed them. Once you confirm the selling price and MSRP I will work up a payment for you.
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The first thing that I noticed about the lease that you were quoted was 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 this Honda Pilot would be exactly the same, regardless of whether you had
put $2,500 down, or had made absolutely no down payment at all.
The good news is that the dealership that you were dealing with was being straightforward with you about this truck's lease money factor. American Honda Finance Corp.'s base lease money factor for the '05 Pilot is indeed currently .00149.
I am not personally all that familiar with what the Honda Pilot is selling for right now. I do know that in most areas the days of them going for full MSRP are long gone. You were able to negotiate a discount of around $1,200 on a truck that typically has a gap of around $3,200 between its full MSRP and dealer invoice prices. I suspect that you may be able to get a Pilot with a slightly larger discount of there is a decent amount of competition for your business in your area and you comparison shop a little bit. Make sure to check back on the Priced Paid discussion for the Honda Pilot where you also posted this message to see what others have been paying for similar models lately.
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> the lease deal for the 05 MDX with NAV&RES. Do not take delivery for 10-14 days since dealership did not have color we wanted(Silver with Ebony interior). Lease details from purchase agreement below. Again, lease is for 42 months 12k/per yr. 15cent
(mileage penalty).
Residual Value: $25,001.20
Base Monthly Payment: $476.19
Sales Tax: $23.81
Total Monthly Payment:$500.00
Security Deposit: $0
Bank Acquisition Fee: $595.00
Capital Cost Reduction: $1990.95
Tax on Cap Cost Reduction: $129.30
Plates and Registration: $284.75
Total Amount Due: $3,500.00(Down Payment)
Total Monthly Payment:$500.00
> What do you think?
waiting down south 4 a good deal.
I really appreciate your response.
nolafilm
MSRP- 21,170
Selling Price- 20,670
Money Factor- .00055
$700 dollar trade with only approx $260 going towards my selling price after subtracting first months payment and $152 for title and licence.
monthly payments he's given me are $270.
thank you so much for your help!
oops..i almost forgot to mention that i'm getting 15k miles a month. i don't know if that changes anything. thanks!
Currently Saab is offering $2k lease cash and $1.5k conquest cash for VW owners, which I am.
Also offering $3k incentive on a purchase.
Trying to figure out whether it's better to lease or buy.
The advertised lease is $2999 down & $179/mo. I'd rather put less down and have a payment in the low-mid $200's.
Need residual & money factor so I can tell if the dealer is trying to give me a raw deal.
I think i got the numbers wrong. I enquired again. The price of the car is 33,587 and he was ready to reduce it by 2000$ to 31,587. for a TSX he was ready to reduce the price by 700$. My credit union is offering a car loan at 4.24%. is it better than the honda is offering. I was looking for TL, TSX or Infinti G35. What do you think is better. is there any way i can get a smaller monthly payments on this car.
The purchase price of the vehicle is $26,700. Can you help me out with what I can expect from Chrysler financial, for a mf and residual?
Thanks, Car_man!
OK – I have never leased a vehicle.
I am looking at a short term lease (2 years / $499 / 2005 Audi S4) that is 10,000 miles / year.
Fine Print includes: Over 10,000 miles = $0.25 / mile.
I typically drive 15 – 16,000 miles / year.
I asked what it would cost to buy miles “up front”. Answer = $0.15 / mile.
So – question is: Does buying miles “up front” make any sense?
Related – if so, how does it work? Single check for the total? Additional amount each month?
I have read a bunch or recent posts here, but did not see this topic. . .
Thanks,
- Ray
Also unsure of other things, but . . .
New cars loan APR and money factor rates are not exactly the same. They cannot be meaningfully compared. Monthly lease cost is effected greatly by the residual value of the vehicle, in addition to the money factor APR. Residual value effects the monthly price because the lessee only pays for that part of the car's value that is consumed during the lease term. Interest is charged on the lease term, but not on the entire value of the car. A new car loan causes the buyer (as opposed to lessee) to pay the entire cost of the vehicle. At the risk of seeming tautological, the lessee is responsible only for maintaining the vehicle and returning it with only reasonable wear and tear, an owner owns and therefore the vehicle is the owners worry. For example, my wife's Passat was in the body shop 2 months after an accident that included a bent frame. If I owned the car I'd be a lot more unhappy and would be wishing the vehicle was totalled. But, it will be VW's problem down the road because were surely returning it now. I don't plan on having to drive it as it ages. If the accident lessened the worth of the vehicle, it is not my worry.
Leasing is right for me for business/tax reasons and I like having new cars more often. I am looking at the TL and I think it is very, very nice. Honda knows this, it is Acura's biggest seller. I think 60,000 annual units in the USA, compared to 15,000 for the TSX.
As an aside, the TSX smaller sales numbers can mean that they are sometimes in scarce supply. I think that the $700 under MSRP reflects the high demand relative to available units compared to the TL. For the extra 70 horse power and with the discounting closing the price gap between the TL and TSX by $1,300, I think the TL is clearly the better value for the money. I also think that the TSX is much smaller than the Chrysler, feels smaller than the TL, but is pretty comparable size wise to the Infinity. However, Infiniti also knows they have a winner in the G35 and its lease price with options making it similarly equipped to the bigger TL are higher.
The TL money factor is high, but it has a high residual value compared to cars like, say, the Saab 9-3. Accordingly, lease payment is still pretty good if you like the vehicle. However, the 9-3 is an example, IMHO, that is either designed to be leased rather than owned or became that type of vehicle because of reliability concerns. GM jacks up MSRP, subsidizes the money factors to make them below market and provides lease cash, and the dealers offer substantial discounts on top. Still, I think my 36 months and 45,000 miles will be more happily spent behind the wheel of a TL.
Good luck.
Thanks again for your help. Just a quick update - I spoke with two dealers in the area - they say they can't budge from the deal I listed above because it's Honda's national program and they have to abide by this. They can't lower the down payment, or the monthly payments - they have to stick with the Honda program as Honda lists it on their website. Are the not telling me the whole story? Or do you think this is the best deal I can get (at least in this area)?
Thanks so much again - you should write a book with all your great advice. I think it could be a best seller!
nolafilm
Just wanted to thank you for all the information you provided to help me compare the numerous car options I had been considering. Finally made a decision and went with the 05' SC430. Without a doubt, I was able to get a much better deal than otherwise would have because of the Edmunds website, this forum, and especially the opportunity to ask you specific questions and get accurate and timely responses.
Thanks
I would be more than happy to give you my opinion on this lease, however you never mentioned the MSRP or selling price of the truck 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 the selling price and MSRP of the model 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 these prices is that they are necessary to calculate lease payments. 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 its selling price and MSRP are.
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As far as how long to lease this car for goes, while there are certain exceptions to this rule, generally speaking the longer a lease is, the lower its monthly payment will be. This is because vehicles experience their fastest rate of depreciation during the first year of ownership. The longer your lease is, the larger the number of payments there is to spread out this large initial depreciation hit out over. I personally feel as though 36 to 39 month leases are ideal. Any longer than that and I personally get a little antsy and want something new. Furthermore, it is usually fairly expensive to get out of a lease early. The longer your commit to leasing a vehicle for, the more likely it is that something will happen to change your lifestyle, possibly causing you to need a larger vehicle, drive more miles than you originally thought that you would, etc...
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Acura is not offering special financing rates on either the TL or the TSX right now, so if you were to finance either of these cars through it, you would have to use its standard finance rates. I am not sure exactly what American Honda Finance Corp.'s standard finance rate is right now, but I suspect that it is right around 5%, which is higher than the rate that your credit union is offering.
All of the cars that you are interested in are good vehicles. If I was in the market for one of these models right now, I personally would go with either the TL or the G35. The fact that one can get the G35 with AWD is a big plus in my book. If you can still find a leftover 2004 G35 out there, Infiniti is provising special financing rates of 1.9% for up to 3 years and 2.9% for 4 to 5 years on it.
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two things than - should I go for "buying this model" rather than lease it since there are no incentives?
-or-
go for the best lease I can.
(I do like a new vehicle every few years - so I will always have a payment) this is for my wife (and I know I'm gonna drive this baby more than her previous Grand Cherokee) I put a lot of miles on myself, so I drive a Maxima that I bought. (my original goal was to buy another vehicle and own two) but prices are high out there.
so back to number two scenario on a lease.
MSRP - $43,775 for 05 loaded as per Edmonds with dealer invoice around $40,000 w/ dist chrg.
I don't know what they are going to offer me.
- - I started by looking at a 04 Demo that they offered me for $36,492 plus Dealer fee of 499 plus tx & tag.. this was loaded also and my idea was to buy it.
The dealer then started talking lease on a new one......... They said an 05 would run me $515 42mths. w/ 12K....at which time I left on good terms as I was getting confused with all the numbers. I WOULD LIKE TO GO BACK IN PREPARED.
Any help you can give is appreciated. Superep
I have seen lease numbers anywhere from hi 2's to hi 3's, which I know is tied to what I put up front. My preference is to do as little as possible, but also I want to keep the payment under 350, if at all humanly possible.
Anything I should watch for?
The one sticking point, is right now, I probably go between 15 and 16k per year, but we might still lease for 12k per year, as the first place we went was quoting 20 cents per mile, regardless of pre or post-lease. Pay me now, pay me later, wouldn't save me any money.
thanks
You mentioned in your post that you want to take advantage of the tax break for businesses that purchase SUVs prior to the end of the year. If I am not mistaken, when the government decided to close this loophole several months ago, it did so effective immediately. If this is indeed the case, then it is already too late to take advantage of this rule. Perhaps someone else out there can confirm this for us.
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Thanks a lot for your help. Took a delivery of my new Black Sapphire 530i yesterday, the car is unbelievable and the fact that thank to you and others I got the best possible deal on it makes it even better.
Thanks again and Happy Holidays everybody!!!
Alex
As far as your truck's mileage allowance goes, leases through AHFC are based upon either 12,000 miles per year or 15,000 miles per year. The difference in payment between a 12,000 miles per year lease and a 15,000 miles per year lease will definitely cost you less than $.20 per mile.
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