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Prices Paid: Buying & Leasing Experiences Land Rover LR3 Prices Paid and Buying Experiences
337 messages, Last post on Nov 02, 2009 at 10:17 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
| So did you buy a car from yourself or were you just giving a plug for your role as the Internet manager!!??!! | |
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Wow, what a coincidence! I just moved to the Chicagoland area about 5 months ago, and have decided to buy an LR3, but don't have any experience with any of the dealers around here. Now, here's a post from someone singing the praises about the dealership he bought his LR3 from. I have to admit I was a little cynical, given that you had never posted here before and were so over the top in describing what the dealer could do for out-of-staters, even though you had no reason to care. I have to admit I was truly amazed to see that the very next post was from the very same guy, fessing up that we couldn't really trust him... That takes true gumption! Thanks for helping me make my decision - I love a good deal, but I'd rather have a good dealer. Anyone have any experience with LR Hoffman Estates? They're closer to me, and haven't made total boobs of themselves, which gives them a huge leg up on some of the competition...
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I'm looking to lease an HSE for 36 months with about 15000miles a year, but every time I walk into a dealership they are telling me that lease rates are around $850 a month. Personally I think that is high, especially because I have x-plan. So I went on to leasecompare.com and put in the figures and it gave me a price of around $600.00? How does x-plan work with outside leasing agencies, and is that price anywhere near where it should be?
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Replying to: aront (May 24, 2005 12:18 pm) |
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Replying to: cpp (May 23, 2005 7:02 pm) kirstie_h Roving Host Host, Future Vehicles & Smart Shopper discussions |
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Replying to: ngnewyork (Apr 16, 2005 8:13 pm) |
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Replying to: sivart (Apr 18, 2005 12:14 am) Thanks |
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Hello all: I see there is an ongoing discussion about leasing, and having leased two Land Rovers, I wanted to make sure everyone knew the exact formula for determining how the monthly lease amount is calculated. Here it is: [(Cap. cost - resid. value)/# months] + [(Cap. cost + resid. value) x (money factor)]To this sum, you must add the percentage sales tax for your state. This will be the total monthly lease amount. Note that the Cap.cost is the net sale price of the car, so if the MSRP is $50,000 and you get a $1,000 discount and have a $5,000 trade-in or down payment, the Cap cost will be $44,000. The resid. value is the amount set by the lease company for what the car will be worth at the end of the lease term. The money factor is expressed in decimal form, such as .0013. This decimal multiplied by 2,400 will equal the interest rate in more familiar terms: .0013 x 2,400 = 3.12%. Sometimes, when you ask for the money factor, the salesperson has been trained to mislead you by saying something like "it's 1.3", which makes you think it's 1.3%, whereas in fact it's .0013, which is really 3.12%. If you study the lease formula, the first term represents the portion of the car's value you pay for during your lease, while the second term is the "interest", or profit, to the lease company. The problem is that federal law does not require auto dealers to disclose all of the variables, so it is almost impossible to know how the variables are being manipulated unless you ask for the numbers and plug them into the formula yourself. In fact, the money factor is not even required to be disclosed on the final lease documents; all that is required is to state the total cost for the "interest" portion of the lease, in addition to the Cap. cost and residual value. Obviously the Cap. cost is negotiable, and so is the money factor, especially if you have information on other competing programs from your bank or credit union, or other sources such as www.leasecompare.com. The residual value, while usually not negotiable, can be manipulated. First, the residual value should always be calculated as a percentage of MSRP, not as a percentage of your Cap. cost. This is because the car is worth the same residual value at the end of the term regardless of what you pay for it now. In my example, if MSRP is $50,000 and you get a $1,000 discount, if the residual value is set at 57% for a 3-year lease, it's 57% of $50,000 ($28,500), not 57% of $49,000 ($27,930). The same would be true if you paid $1,000 above MSRP for the car. Second, the residual value is adjusted downward by the lease companies every quarter of the model year. The highest residual is in the October-December quarter when the new models first come out, and then it goes down from there. The reason is that as the year progresses, the car will be worth less after the fixed lease term. This is why it makes sense to lease at the beginning of the model year. Third, the lease company should add the MSRP of all permanent, factory or dealer-installed options to the MSRP, and then apply the residual percentage. For example, if the MSRP is $50,000, and the dealer throws in the DVD system for free, the MSRP should be an additional $1,700 (per the LR web site) higher, or $51,700. You then take 57% of that number for the residual value. This is because the car is worth more at the end of the lease with the DVD. If you add a lot of these options to the car, it will make a significant difference in the monthly lease cost to include them in the MSRP for purposes of calculating the residual value. Note that you cannot include removable options like floor mats in the MSRP for purposes of the residual. Hope this is helpful, and if anyone has questions or comments, feel free to contact me separately at mlz  adcl.com.
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Replying to: cfy (Mar 08, 2005 6:19 pm) |
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