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Prices Paid: Buying & Leasing Experiences Jeep Liberty Lease Questions
102 messages, Last post on Aug 27, 2008 at 3:20 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: kyfdx (Jun 13, 2008 12:53 pm) The depreciation amount on my current lease is $9758.40 and the rent charge is $4331.52, that seems outrageous to me, I'm wondering if that also includes the extra miles we purchased, we paid for 15,000 miles/year? How would I figure what the interest rate is, based on these figures?
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Replying to: jen_b (Jun 13, 2008 1:01 pm) |
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Replying to: jen_b (Jun 13, 2008 1:04 pm) Divide by the term.. 48 months. Result: $90.23/month Add your net cap cost and your residual amount. Just as an example.. $20K + $11K = $31,000 Divide $90.23 by $31,000 = .0029.. This is your money factor Multiply .0029 X 2400 = approx. 6.96%.. This is the equivalent APR of your lease, assuming your CAP and residual are the same as above.. regards, kyfdx |
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Replying to: kyfdx (Jun 13, 2008 1:12 pm) We are currently being quoted a money factor of .00259/6.2% for an 08 Liberty Limited, I think that seems high based on the fact that we qualify at their top tier level. Do you think this seems high? We could probably find a better rate, but then we would have to give up some of the incentives, so... Thanks for all your help.  )
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Replying to: jen_b (Jun 13, 2008 1:49 pm) He will roll through here periodically to answer money factor and residual questions.. regards, kyfdx Host-Prices Paid Forums |
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I have three payments left on my 06 Liberty, I want to come out of the lease now. Will I just have to pay the 3 months payments, plus the $300 early lease termination fee or will I have other penalties? Thank you
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Replying to: cbam (Aug 10, 2008 1:19 pm) Car_man Host Prices Paid: Buying & Leasing Experiences Forumv |
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Replying to: kyfdx (Jun 13, 2008 12:53 pm) |
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Replying to: kyfdx (Jun 13, 2008 1:12 pm) Take your rent charge... $4331 Divide by the term.. 48 months. Result: $90.23/month Add your net cap cost and your residual amount. Just as an example.. $20K + $11K = $31,000 Divide $90.23 by $31,000 = .0029.. This is your money factor Multiply .0029 X 2400 = approx. 6.96%.. This is the equivalent APR of your lease, assuming your CAP and residual are the same as above.. regards, kyfdx What I want to understand in your example is what is the 6.96% applied against? In other words, what value exactly are you being computed the equivilent of interest against? II would have thought you should owe interest on the part of the car you are buying, or the depreaciation and amortization (i.e. the adjusted cap cost MINUS the residual value). But in your example, for instance, that would be 20K-11K = 9K, But if I use a compound interest calculator against 9K over 48 months the monthly interest payment should be less than $30/month of the total payment, far less than the $90.23. So the "interest" must be calculated against something far larger than the amount being the equivilent of "borrowed" or used. The interest is larger even than if applied to the residual amount, but smaller than if applied to the entire value of the new vehicle. Your help is appreciated.
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Replying to: citivas (Aug 26, 2008 7:02 pm) The amount that is financed is an average of those two numbers.. You start out borrowing $20K (the cap cost), and end up owing the residual amount (which is satisfied by giving the car back). You owe interest on the whole car.. because, after all, you can't borrow just the part you use... you have to borrow the whole car... then, give back the part you didn't use.. Since you pay for the car as you use it, that amount gradually drops to the residual over the life of the lease. So, technically, it is ($20K + $11K) divided by two.. But, the division calculation is accounted for in the money factor.. Hope that helps, kyfdx |
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