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Re: Saab Combi Lease Specifics cont. [steamboat72]
by Car_man HOST
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Nov 16, 2005 (3:32 am)
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Replying to: steamboat72 (Nov 10, 2005 11:15 pm)
Hey steamboat72. Let's calculate what your lease payment on this car should be like using Saab's actual lease program and the prices that you were quoted. According to my calculations, if you were to lease a 2006 Saab 9-3 2.0T SportCombi with an MSRP of $30,265 and a selling price of $28,970 through Saab Financial Services Corp. right now for 36 months with 15,000 miles per year, your zero down, pre-tax monthly payment should be around $402. I based this payment on the assumption that you are not going to make a capitalized cost reduction (aka down payment) because making one is not in your best interest. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your Saab would be exactly the same, regardless of whether you had put several thousand dollars down, or had made absolutely no down payment at all. If you use the $500 bonus cash that Saab is providing to reduce this car's cap cost, the payment would drop to around $387. If you were to roll Saab's $595 acquisition fee into your car's cap cost, this would be about a wash and result in a monthly payment of around $405. If you were to make the $2,000 down payment on this car that the dealer asked for, it would drop the monthly payment to around $346 before tax. I used Saab's current buy rate lease money factor of .00164 to arrive at these payments. If you pay a security deposit, you should be able to take advantage of this factor. The two things that you need to do in order to assure that you are getting a good lease on this car are negotiate a low selling price and make sure that the dealer is using Saab's buy rate money factor to calculate your monthly payment.
Car_man
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- #51 of 546
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Re: Saab Sports Combi Lease [jack00]
by Car_man HOST
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Nov 16, 2005 (3:39 am)
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Replying to: jack00 (Nov 14, 2005 8:56 pm)
Hi jack00. The selling price that you were quoted on this car looks reasonable to me. The money factor and acquisition fee that you are being charged are a little high though. For consumers who pay a security deposit, Saab's buy rate lease money factor for a 24 month lease of a 2006 9-3 2.0T SportCombi is .00164. Saab will waive its security deposit requirement in exchange for a slight increase in vehicles' money factors. That probably partially explains why the money factor that you were quoted is higher, but there may be some mark-up going on there as well. I personally would rather pay a security deposit that I am going to get back than throw away money on a higher lease payment. Saab Financial Services Corp.'s current base lease acquisition fee is $595 in most states. It is slightly higher than this in a few areas though, such as New York and New Jersey where its base acquisition fee is $695. There may or may not be some mark-up going on with your acquisition fee, depending upon what state you are in.
The main thing that I would change about this deal if I was leasing this car is the down payment. I always advise consumers against making any sort of down payment when leasing. I do so for two main reasons. The first is if your vehicle is totaled in an accident or stolen during your lease, your insurance company pays off the bank that you were leasing it through and your down payment essentially disappears. The second main reason is that down payments on leased vehicles do nothing to reduce their lease-end purchase prices. So your lease-end purchase option price for your SportCombi would be exactly the same, regardless of whether you had put $1,000 down, or had made absolutely no down payment at all.
Car_man
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- #52 of 546
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Re: Saab Combi Lease Specifics [steamboat72]
by Car_man HOST
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Nov 16, 2005 (3:42 am)
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Replying to: steamboat72 (Nov 15, 2005 10:02 am)
You're welcome Steve. Vehicles' selling prices are the main negotiable aspect of leases. The only other thing that you can negotiate is you can make sure that the dealer that you are working with is using your vehicle's buy rate lease money factor to calculate its lease payment. While dealers do not have the authority to lower banks' published lease money factors, they are often allowed to mark them up to add additional back-end profit to deals. Pay a security deposit, and absolutely insist that the dealer use the .00164 factor to calculate your car's lease payment.
Car_man
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- #53 of 546
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Re: I like math [qool]
by Car_man HOST
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Nov 16, 2005 (3:46 am)
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Replying to: qool (Nov 15, 2005 5:12 pm)
Greetings Rob. Unfortunately, Saab Financial Services will not provide you with information on vehicles' current lease programs if you call them directly. They will tell you to speak with your local dealer. You should be able to find out what the lease programs are like for the cars that you are interested in through by visiting the lease discussions in this forum through. Either some other community member who has recently leased one of the vehicles that you are interested in, or I can share this information with you.
Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.
Let me know if you have any other questions.
Car_man
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- #54 of 546
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Re: I like math [Car_man]
by qool
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Nov 16, 2005 (6:25 pm)
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Replying to: Car_man (Nov 16, 2005 3:46 am)
Thanks Car_man. The article on calculating lease payments was especially helpful.
So I'm in contact with a Saab dealer, and the purchase price seems fair to me, but they don't have a specific color I'd like. I've been avoiding specifics to keep the focus on the price.
Do you have an idea what it might cost a dealer to trade with another dealer or manufacturer for a specific color 9-3? I'm thinking it would be around the ballpark of $100-$300 if the dealer had to pay to transport it. (I shipped my car across California for $300 a year ago)
The nocturne and fusion blues look awesome!
Rob
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- #56 of 546
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Re: Saab Combi Lease Specifics [Car_man]
by saablcp
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Nov 17, 2005 (9:34 am)
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Replying to: Car_man (Nov 15, 2005 4:23 am)
A Sport Combi is the same thing as an Avant.....as if that would tell you anything!!!!LOL!!!!
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- #57 of 546
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Re: 2006 Lease price realisticly [dreamrocks]
by saablcp
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Nov 17, 2005 (9:52 am)
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Replying to: dreamrocks (Nov 15, 2005 3:41 pm)
I stand PARTIALLY corrected... partially because the Z-4 that was quoted was UNDER $40k. but only by a few hundred dollars.That being said the Gentleman who prompted my statement said he lived in Northern Illinois. He is more than welcome to visit his local BMW dealer for a great deal on a small,2 seat,R.W.D.sportster that he MIGHT be able to take out of the garage in 6 months,when Chicago thaws out!!!
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- #58 of 546
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lease prices
by dhanley
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Nov 17, 2005 (10:20 am)
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A z4 will give you 9 mos in N illinois, with winter tires, year-round fun.
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- #59 of 546
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Single Payment Lease: Good or Bad?
by qool
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Nov 17, 2005 (4:31 pm)
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Hello again,
Has anyone on this forum explored the up-front single payment lease option? Details are limited on the net, but from what I understand you simply pay the depreciation of the car and no finance fee, since you are not borrowing the depreciation over the term of the lease. Does that sound correct?
In numbers, a money factor of .00164 translates into an annual interest rate of 3.936%, which you would be saving per year. Or, if you opted to go with the traditional monthly lease, you would have to be able to earn greater than 3.936% from investment money to cancel out Saab Financial's finance fee.
Am I reasoning about this correctly? Anyone know of some huge downsides to the up-front single payment lease?
Thanks people.
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