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Smart Shopper Smart Shopper-Archives Lease Questions - Ask Here 
23872 messages, Last post on Sep 20, 2005 at 8:08 AM
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Replying to: drdog (Nov 03, 2004 6:19 pm) Honda CR-Vs, even with high mileage, have a very high resale value.. The residual on a 15K lease may reflect this, but the excess mileage charges you would incur, even if buying the miles upfront would not.. I would advise buying the car on a 3 year loan term... $24K borrowed at 4% for 36 months is about $710/month.. I'd much rather pay that to drive the car for 100K miles, then possibly get $8K-$10K back in resale, than to pay $500/mo. for a 36mo/90K lease, then still get hit with possible mileage and wear/tear penalties.. You could even get the warranty extended to 100K for around $900-$1000. Really high miles isn't a good situation for leasing, especially since you aren't sure of your mileage needs (25K-50K?). Even if you pay a little more for the car than the total of your monthly expenses, you will be financially ahead in the long run. regards, kyfdx |
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Replying to: Car_man (Nov 04, 2004 4:53 am) Another poster questioned the amount due at lease, the salesperson broke it down like this: The salesperson broke it down like this: 453.00 first payment 813.86 (NJ tax) 334.50 "motor vehicle fees" incld. registration for next 3 1/2 years) 125.00 title fee 895.00 bank fee (which she said includes gap insurance) I asked why she went through Chase instead of Volvo and she said because of the free versatility package and Chase is currently waiving security deposit. I met with her on Nov. 2nd. Do you think the bank fee is unfairly high? I've seen you post that the dealer can inflate that # for profit. What would a fair amount of profit be for a dealer on this vehicle in Northern NJ? I'm fine with being fair, I just don't want to be taken advantage of... As per the Edmunds TMV the price is about $750 over invoice accounting for free versatility package, if they're adding another $300 or so to the bank fee that is already $1000 profit, not including holdback or other incentives I don't know about- my impression is that there should be some wiggle room in that figure - what would be reasonable? Another poster questioned paying tax on the lease in NJ, do you have any knowledge of that? Thanks so much, kzybulew
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Replying to: kzybulew (Nov 04, 2004 7:22 am) Yes, NJ taxes leases.. I believe it is 6% on the depreciation portion of the lease, but not sure on the exact specifics.. $895 seems a little high, but independent banks do tend to have higher acquisition fees.. I'm sure Car-man didn't realize you were paying the taxes upfront in your lease.. I won't speak for him... but, that would change my opinion on the upfront costs.. That said (or written), I would see if I could roll some of those fees into the cap cost and pay them over the 36 months, instead of upfront. For sure, you could do that with the acquisition fee and probably the sales tax as well. The less paid upfront on a lease, the better. regards, kyfdx |
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Hi all, Six days ago my wife and I leased a new 350Z. We liked the lease terms: Gross Capital Cost, Residual and payment. Yesterday they called me and said that the leasing bank did not qualify us. But that they had another lender who did and could we please come back to sign a new lease agreement. I asked if all the terms and numbers were they same - they said yes. So my wife and I show up there tonight and I look over the new lease agreement and start to match up the numbers - they didn't match! The monthly payment was the same but the Gross Capital Cost (the cost of the vehicle) did not match the GCC of the old agreement - it was now $1000 more than the old agreement. And the Residual (what we'd owe) was now $1000 more than the old agreement. They had added $600 for an "aquisition cost" for the new lender and $400 added to the residual was unexplained. I didn't sign it. I still have the car and plan to show my terms to another dealer and see if they can match the old agreement. Anyone have experience/suggestions about this matter?
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| My mistake. The tax was rolled into the monthly payments on the lease, not paid up front. Which, as you should be able to do, is certainly the wise decision. If you pay the sales tax up front and the car is totalled or stolen, bye bye $. If you roll it in, you simply have the insurance co. pay off the lease (assuming gap, etc.), and walk away. | |
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Replying to: 350z (Nov 04, 2004 8:03 am) THIS IS NOT TO BE CONSTRUED AS LEGAL ADVICE. THIS IS OFFERED ONLY AS PARTICIPATION IN A DISCUSSION BOARD. THE WRITER IS NOT FAMILIAR WITH DETAILS THAT MIGHT EFFECT YOUR RIGHTS, HAS NOT SEEN THE LEASE AGREEMENT YOU EXECUTED AND DOES NOT KNOW WHERE YOU RESIDE AND MAY BE UNFAMILIAR WITH THE LAWS OF THAT LOCATION. YOU SHOULD CONSULT WITH AN ATTORNEY LICENSED TO PRACTICE IN THE JURISDICTION IN WHICH YOU LIVE. RELY ON THE OPINIONS STATED HEREIN ONLY AT YOUR RISK. If I read the post correctly, you went to a dealer who as agent of a lessor offered you lease terms that were acceptable. You accepted. You made a down payment, which is consideration. You have a valid contract. Apparently, an assumption was made by the dealer that you would qualify for the program that they quoted and you accepted. This is the dealer's blunder and you do not need to hold them harmless. They seem to have acted outside of their authority as the lessor's agent. If they acted with authority, the lessor cannot make you reform the lease after it was executed by their agent. The dealer probably has no way to get paid for the product. If a lessor needs to make another $1000 to write the deal it should come from the dealer, who probably was required to have had the lease approved and fully placed with a lender before delivery. The only exception, I can think of, would occur if there was some explicit language in the sales or lease contract that indicates that the offer is subject to the buyer qualifying for the lease offered. But, an option in that case would be to simply return the car and walk away from the deal. They will make you a better offer if you say you are walking. I would suppose your walking would cost the dealer money more than doing the deal by paying the additional $1,000 the new lender wants. After a week the car is not really new. How could they market it? If under your state's law it would have to be sold as used, the dealer will surely pay the $1,000 to keep you in your car. Probably the best option for them would be to make the car a demo if the manufacturer would allow it. Good luck. |
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a double post 50 minutes apart? how does that happen? just curious. anyway, i think upndown covered it pretty nicely. Give the original dealer a chance to straighten it out and by no means go lease another one until the current one is straightened out. You may end up with 2 leases. Only if they "unwind" the first deal should you go lease another one.
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Replying to: Car_man (Nov 04, 2004 4:23 am) -c |
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Replying to: avp2417 (Nov 04, 2004 6:28 am) http://www.leaseguide.com/calc.htm That is without tax. There are different ways to handle taxes depending on the state you are in. In some states you pay tax on the entire cost of the car, some states only on the depreciation cost, and some states you pay tax on deprication plus the finance charge. The calculator above assumes the last scenario. To give you an idea, I just finished leasing an MDX Touring with navi and res (top of the line) for 42 months/15k miles for $565 a month including taxes and 1800 out of pocket. That is with 6 percent tax here in NJ where you don't pay tax on the financing. Residual 56 percent and money factor .0023. My advice to you, is to figure out your payment with tax, using the .0026 money factor with the corresponding residuals and $500-$1000 over invoice for 36, 39, and 42 months. Remember that money factors and residuals change depending on how many months and miles you are looking for. Usually Honda will offer the best money factor for x amount of months because they want stagger the end of lease terms so they don't get a whole bunch of cars coming back at the same time. In October and November for the MDX, it was .0023 for the 42 month program. Then simply tell the dealer that is the monthly payment you are looking for and that you will pay everything else out of pocket, and let him play with numbers to match it. Once you have his best offer, go to another dealer and ask them to beat it. Most times they will, especially if it's close to the end of the month and they have the car in stock. It's not an easy thing to play one dealer against another if that is not your nature, but it's the best way to get a good deal. It also pales in comparison to the tricks they play on you. If this is your first time leasing, then definetely don't go with the first deal offered. Chances are you will get screwed. |
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