Last post on Aug 06, 2010 at 3:34 AM
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Land Rover LR3, Car Leasing, SUV
#81 of 569 Did I get A Bad Leasing Deal On a 2005 LR3 SE?
Jun 07, 2006 (3:53 pm)
I stumbled into your forum by accident and wish that I could have discovered it earlier.
Please tell me if I might have got a bad leasing deal. A week ago (5/30), I saw an ad on the paper by a local Land Rover dealer that they had a new 2006 LR3 SE with a MSRP of $50,770 that they were selling for $40,770. When I went into the dealership asking to see that car, I was told that it was a mistake on the news paper's part. This was actually a 2005 model, and by the way, it also had 1600 miles on it. I test-drove the car and it seemed to be in good shape. The dealership told me that there were a couple thousand dollars worth of additional dealer-installed options that they were not counting in the pricing. Although I was unhappy with the misrepresentations, I thought $10,000 to $12,000 off on the car was still a good deal, so I decided to discuss leasing the car with them.
My leasing terms were 36 month, 15,000 miles/year and with the least amount of out of pocket money. I was told that since it was a 2005 model, they had to go with a commercial bank but that had a very good rate. The lease payment that they worked out for me was $728.44/month (7.5% tax included) with $943 out of pocket (Including the first month payment and paper work. There was no need for security deposit but I will have to pay a disposition fee when I return the car at the end of the lease.) Just to make sure, for comparison purpose, I asked them to work out the payment for the case if I would have leased a new 2006 LR3 SE with exactly the same options and same leasing terms using Land Rover financing. The factory options on both cars included lighting package, cold weather package, convenience package, rear park distance control, navigation system and a tow hitch. After crunching through the numbers, they showed me a lease rate that was more than $200 per month higher. I asked them further if they were using the MSRP value for the 2006 car calculations. They assured me that they were using a realistic sale price not the MSRP. With that information, I signed the papers and took the car home the next day.
Upon reading the postings by "Car-man" and others on this forum today, I came to realize that I probably could have leased a 2006 LR3 SE (and without the 1600 miles on it) for near the same level of payment that I am having now. I priced out the 2006 LR3 SE with the options mentioned using Edmunds.com tools, it came out at $51,050 MSRP and $46,520 invoice. What would the fair leasing payments for such a car be? Was I misdirected by the dealership? Was the lease rate they quoted me for the 2006 car off base? If this is the case, will it be too late for any recourses such as negotiate for reducing the length of the lease to 24 months? Thanks for your help.
#82 of 569 Re: Lease Quote [Car_man]
Jun 07, 2006 (6:07 pm)
Interested in leasing the LR3 HSE w/ options. MSRP from Edmunds is $55,850 & Invoice is $50,888. Got a lease quote from a dealer: MSRP $55,950 & the selling price/cap cost is $51,352. 15,000 miles per year for 30 months, money factor is 1.61%,residual value 60% ($3,3570) with minimum drive off, payment is $751.82 plus tax. Please let me know if it is a good deal.
I'm also interested in leasing for 24 or 30 months at 15,000 and 18,000 miles per year. Would you please run the numbers for me? Is it better to lease a LR3 V8-SE model with MSRP $53,100 Invoice $48,895 Selling Price/Cap Cost47,895. Please advise.
Thanks a lot!
#83 of 569 Re: Lease Quote [Car_man]
Jun 10, 2006 (9:43 am)
Ok, here's the final number....I pick the car up on Monday.
2006 LR3 SE w/Cold Climate Pkg, Lgt Pkg w-PDC, Rear Seat & Climate Pkg
MSRP $50600, got it for invoice which is $47000
2yr lease w/12k a yr
MF .00167 (I know its .00157 but they claim there's a processing fee mixed in there.....whatever)
Residual is 73%
$1500 coupon from LandRover good for New Purchase or Lease on LR3 (all I did was inquire on the LandRover home page and they sent me a coupon......it also had $2k of Range Rover but wife wouldn't let me get that one) I highly recommend going on the website and filling out the inquiry form.....it's found money.
so apply the $1500 to the $47k invoice px and now I'm down to $45500 sale price.
$2064.67 out of my pocket....$595 bk fee, $550.00 sec deposit, $212 Registration and title fee, $7.50 MV tire fee, $169 doc fee, and $531.17 1st month payment.
so that's the final number a month....$531.17 for 2yr/12k lease.....I think I did very well....due to all the info I got off this site.
so Thank you all !
#84 of 569 Re: Lease Quote [mrchili]
Jun 10, 2006 (9:53 am)
btw....here's a great website if anyone needs to run numbers...my numbers are off about $6 but otherwise it works very well.
#85 of 569 Re: Lease Quote [mrchili]
Jun 11, 2006 (12:52 am)
"$1500 coupon from LandRover good for New Purchase or Lease on LR3 (all I did was inquire on the LandRover home page and they sent me a coupon."
Can you state exactly where you inquired? Was it just to request information?
#87 of 569 Re: Lease Quote [Car_man]
Jun 11, 2006 (10:22 am)
Need your advice. I was orginally not thinking of a LR3 however a recent newspaper advertisement peaked my interest. My local Land Rover dealership is advertising a 24 month lease deal for $399/month with $2495 down. This does not include TT&L or a security deposit (not sure how much this will be). The terms are 10K miles a year with a residual of $34,891. This lease deal is for an LR3 V8 SE. Is this as good of a deal as it appears? Thanks for your help.
#88 of 569 Re: HSE Lease How much? [bigjoelr3]
by Car_man HOST
Jun 19, 2006 (2:47 am)
Hey bigjoelr3. I believe that Land Rover Capital Group charges an acquisition fee of around $595 on every vehicle that it leases. Bank fees and acquisition fees are the same thing, so that second charge that you mentioned is probably just a way for the dealer to pad its profit. Skip the WearCare, it's not worth it...especially on a lease. All you should have to pay on your lease is your truck's first month's payment, a security deposit that is equivalent to that payment rounded up to the nearest $50 increment, a acquisition fee, and any required state taxes or fees.
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#89 of 569 Re: Did I get A Bad Leasing Deal On a 2005 LR3 SE? [s.k.]
by Car_man HOST
Jun 19, 2006 (3:00 am)
Hi s.k. It certainly sounds like the dealership that you dealt with pulled the old bait and switch on you. The truck that it advertised in the paper is nothing like the one that they were actually selling, it was a different model year, had less options, never mentioned the mileage...etc. That would have left a really bad taste in my mouth right off the bat. Let's see how much it would have cost you to lease a 2006 LR3. Let's assume that you were able to get the truck that you mentioned, an '06 LR3 SE V6 5-Passenger with an MSRP of $51,050 and a dealer invoice price of $46,520, for $500 over invoice. Using these prices and Land Rover's actual lease program I estimate that your 36 month, 15,000 mile per year, zero down, pre-tax monthly payment should be around $654. Unfortunately now that you have signed the lease for your '05 LR3 and have physically taken delivery of it, there really is not anything that you can do to unwind your deal. Just chalk it up as a learning experience and research your next lease thoroughly before committing.
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#90 of 569 Re: Lease Quote [ahgouah]
by Car_man HOST
Jun 19, 2006 (3:18 am)
Hi ahgouah. I'm surprised that you were quoted such an attractive money factor for this truck. The last time that I saw its lease program, Land Rover's buy rates lease money factors for it were .00132 for 24 months and .00202 for 36 months (I have not seen its 30 month numbers). these are equivalent to interest rates of around 3.17% and 4.85%, respectively. Perhaps the 30 month money factor that you were quoted was .00161. Let's use Land Rover's actual lease program to estimate what this truck's payments should be. According to my calculations, if you were to lease a 2006 Land Rover LR3 HSE with an MSRP of $55,950 and a selling of $51,352 through Land Rover Capital Group right now for 24 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $673. Interestingly, the payment for an otherwise identical 36 month lease is not as attractive, at around $724. The payments for the V8 SE model will probably be a little lower than this because it is a less expensive truck.
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