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Prices Paid: Buying & Leasing Experiences Chevrolet Tahoe Lease Questions
246 messages, Last post on Jul 22, 2008 at 2:22 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: Car_man (Jun 06, 2007 3:56 am) I am looking at either a 36 or 48 month lease with 15K miles p/year. Zero down. Any help would greatly be appreciated
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Replying to: illinoisman (Jul 29, 2007 8:12 am) Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: dcbeltran (Aug 07, 2007 8:09 am) Car_man Host Prices Paid: Buying & Leasing Experiences Forum
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Replying to: stanman4 (Aug 09, 2007 12:26 pm) According to my calculations, if you were to lease a 2007 Chevrolet Tahoe that has an MSRP of $49,305 and a selling price of $44,616 through GMAC right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $631. The payment for an otherwise identical 48 month lease would be around $598. Car_man Host Prices Paid: Buying & Leasing Experiences Forum |
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Replying to: Car_man (Aug 10, 2007 2:29 am) Do you have any other tips to share? Thanks again.. |
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Replying to: stanman4 (Aug 13, 2007 8:27 am) If it's a GMAC SmartLease, then the lease rate will be an interest rate and not a money factor. Alway ask for the base rate which is sometimes called the buy rate. This is the rate with 0% reserves. Don't let them play the game of convereting the rate to a money factor because, although close, it's not spot on. Reserves work in much the same way that points do on a mortgage loan. You want the base rate (e.g., 3.9% + 0% reserves). If they insist on reserves, then I simply deduct the dollar amount of the reserve from the agreed upon value (i.e., sell price). GMAC computes two annuity factors; one that's applied to the adjusted capitalized cost and the other that's applied to the residual... Base Payment = CapFactor x Adj. Cap Cost - ResFactor x Residual. ResFactor x Residual really amounts to a credit of the unused portion of the car's value (as measured by the residual) applied against the adjusted cap. GMAC does something very peculiar that very few people realize and that is this... They use the lease rate to discount the residual one month nearer to the present. I'll call the result the adjusted residual... adjusted residual = Residual/(1 + r/12) where r = lease rate (e.g., 0.039). The ResFactor already accounts for this discount factor. This causes the payment to inflate somewhat because the adjusted residual < Residual. I'm not sure why they do it and neither was GMAC when I confronted them with this several years ago. My best guess is that they do it to account for the fact that they don't charge a disposition fee but, then again, not many other captives do either. If you like, I can confirm the dealer's calculations. I'll need the following info... Adj. Cap, Residual Value, Lease Rate, Term, Base Payment (without tax) Good luck!
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Replying to: delta737h (Aug 13, 2007 4:59 pm) This is great info and nice to finally know how this all works. Thanks again, |
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I have a few questions... Is it better to wait until a big holiday (Labor Day, 4th of July, etc...) to lease a car since that is when GM, etc... offers discounts (or do these discounts only apply to purchases)? I have a GM Supplier discount - is this also applicable to Lease Vehicles? What is the best way to approach a dealer/salesperson regarding a lease - do you negotiate the price up front as if you were to buy the car and then use that price as the value of the lease?
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Replying to: 95aggie (Aug 20, 2007 7:40 am) Is it better to wait until a big holiday? Sometimes. Check to see what incencentives are being offered now. In September, those same incentives may not be available. As a general rule, though, it's not a bad idea to wait for a holiday especially Xmas because the dealerships compete with Santa. Discounts and incentives apply to leases unless specifically stated otherwise. Yes, your GM Supplier discount applies to leases. Check out the following website for further information... https://www.gmsupplierdiscount.com/ip-gmsupplier/virtual/pages/html/sd_faq.html ALWAYS negotiate sales price just as though you were buying it. Check edmunds.com or kbb.com for MSRP/Invoice pricing information and incentives. It's best to prepare a one page lease proposal similar to the one described below. A proposal saves time, money, and aggravation. If my proposal is accepted, I tell the dealer to have the keys and papers ready for me to sign and away I go! Easy, huh? Know how to calculate lease payments. Your proposal MUST BE DEAD ACCURATE; otherwise, you risk not being taken seriously and that can cause problems. Incorrect payments create opportunities for the dealership. It sends the message that you don't know what you're doing. You want to make it easy for the dealer to transfer the numbers on the proposal directly onto the lease agreement. So, you need to make sure that every number in your proposal is spot on. _____________________________________________________________________________ Consumer Retail Lease Pricing Information Base MSRP 2007Corvette 2dr Hatchback (6.0L 8cyl 6M) 44,170.00 Machine Silver with ebony interior 0.00 3LT Coupe Preferred Equip Group . 4,945.00 QX3 Chrome Aluminum Wheels 1,850.00 Destination Charge 825.00 MSRP .. . 51,790.00 Capitalized Costs Agreed Upon Value .. 44,233.47 Gross Capitalized Cost 44,233.47 Adjusted Capitalized Cost 44,233.47 Residual Data Residual Factor .. 0.58 Residual Value (Res. Factor Χ MSRP) .. .. 30,038.20 Cost of Money/Term GMAC Int. Rate . *7.50% Term (months) 36 Payment Calculation Monthly Lease Payment (0.0309130 x Adj. Cap - 0.0245484 x Residual)................ 630.00 Initial Lease Charges Title, Registration, Plates .. 200.00 1st Months Payment 630.00 Security Deposit .. 650.00 Acquisition Fee 595.00 Sales Tax  6.25% x Agreed Upon Value
.. 2,764.59 Amount due at lease signing . . 4,839.59 * GMAC Tier S (top tier) Rate _____________________________________________________________________ Remember that the above is an example only. If GAP insurance is not included, I suggest you purchase it from your insurance agent. GAP costs approximately 0.1% of the MSRP annually or 0.1% x 51,790 = 51.79 in this example. The Residual reflects an annual mileage allowance of 12,000 miles in this example. GM leases do not have disposal fees. The Agreed Upon Value is the selling price. If you have access to a TI83/84 calculator or Microsoft's EXCEL, I'll be happy to give you instructions as to how to calculate the payment... it's very easy to do. Otherwise, if you're interested, you can email me and I'll be glad to help you create a lease proposal. The best way to NEGOTIATE with a dealer is DON'T. Once I FAX/email my proposal, I simply want a response of YES or NO. If it's NO, I simply FAX/email another dealer. I do my homework and so I know ahead of time that the terms of my proposal are "doable". A good rule of thumb for computing GM payments is to convert the GM rate to a money factor (e.g., 0.075/24 = 0.003125) and use the following formula... Base Payment = MF x (AC + RV) + (AC - RV)/Term (months) where MF = Money Factor AC = Adjusted Cap RV = Residual Value Using the above formula, I get $626.41 which is close to $630.00 but not close enough. This formula will get you very close but close is never close enough especially if you're creating a lease proposal. Very few fund providers use interest rates. GM and Ford Credit are the only two finance captives that I'm aware of that use interest rates. The rest use money factors. Observe that the sales tax is computed on the Agreed Upon Value as practiced by some states. Other states compute the sales tax on the payment streams (e.g., 0.065 x $630.00). I hope this helps. John |
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Replying to: delta737h (Aug 13, 2007 4:59 pm) I have recieved a few offers from dealers here in Houston and wanted your opinion on one. 1) 2007 Tahoe LTZ MSRP $48,010.00 My Price $40,991.00 Is this a decent deal. It appears to be below invoice according to Edmonds price guide. Also, you have shown me ways to calculate a lease which has been very helpful. Is there a way to do a reverse thought process on this. Meaning: If I know that I want my lease payment to be around $550.00 p/month what MSRP or bottm line price should I be looking at or shooting for. I do not want to put any money down and use all rebates etc towards the pricing. 36 or 48 month lease. 15K miles p/year Can this be done? Thanks again for your help. stanman4
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