Last post on Sep 12, 2008 at 2:15 AM
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Saab 9-7X, Car Leasing, SUV
#36 of 85 Re: My leasing experience [mister_mark]
Aug 16, 2006 (12:15 pm)
I hope I didn't appear confrontational, not my intent. I was simply focused on the $440 number for 27 months ... after that, didn't really care how they got to the number.
#37 of 85 Dividing by 2400...
by kyfdx@Edmunds HOST
Aug 16, 2006 (12:18 pm)
...is just a rough calculation... It doesn't come out exactly the same... Generally, when converting from the money factor and multiplying by 2400, you will overstate the interest rate charged...
The conversion assumes that the same amount is subject to interest over the life of the lease, but if it were a true loan, the balance would be higher in the early part of the lease, and lower later...
Of course, leases don't work exactly like that, so the conversion isn't exact.
#38 of 85 Re: My leasing experience [sbr3500]
Aug 16, 2006 (12:24 pm)
Nah, I didn't take it as confrontational at all. I just wanted to fully explain my reasoning.
Most people do focus on the monthly payment. It's understandable.
#39 of 85 Re: Dividing by 2400... [kyfdx]
Aug 16, 2006 (12:33 pm)
Thanks, kyfdx. I really appreciate your speaking up.
So, is there any way to really know what your rent charge should be on a lease? And if so, how do you calculate it?
I was told my interest rate would be 3.7%, so I assumed the money factor would be 3.7 ÷ 2400 = .0015417. If I wanted to know the exact rent charge ahead of time, should I have asked them for the money factor instead?
#40 of 85 Re: Dividing by 2400... [mister_mark]
by kyfdx@Edmunds HOST
Aug 16, 2006 (12:42 pm)
I'm not really sure exactly how it works with GM...
Possibly, there is a formula that takes the cap cost and residual, and applies that exact interest rate over the life of the lease... Just as if you were doing a balloon note... (this is my guess)..
So, it is possible that they add up the payments calculated this way, and divide by the number of months to get an average payment...
In other words, you may not be able to calculate it using a simple formula, like a money factor..
Sorry I can't be of more help...
#41 of 85 Re: Dividing by 2400... [kyfdx]
Aug 16, 2006 (2:54 pm)
No problem. I really appreciate your responses. Just knowing that there's more than one way to calculate it and that each company might do it a little differently makes me feel better about my situation.
Since the interest rate I calculated on my lease was so close to what they told me it would be, I'm sure there's just some little quirk about GM leases that causes them to arrive at a different number from mine.
#42 of 85 My leasing Offer
Aug 28, 2006 (12:04 pm)
Negotiated a price on a Grey 97x for 36,986
after all is said and done -
rolled over all fees - except the tire tax of $7.50
I will be paying 417 a month.
I don't think I can get much better.
Is that alright for a 2006, when the 2007 are right around the corner?
#43 of 85 GMAC (Saab) Lease
Aug 28, 2006 (12:51 pm)
Riddle me this...
I am about to lease a 2006 Saab 9-7X 5.3i with Nav and DVD. The MSRP is $44,535 but I negotiated a price of $38,178. What’s more, Saab is providing $2000 cash to put towards the capital-cost reduction.
The term of the lease is 27 months (15K miles/year) with a residual of .67 ($29,833). This means, in plain English, that I have to pay $6345 over a term of 27 months ($235 X 27 = $6,345) PLUS the interest rate and taxes.
Here is where I get lost.
They claim my “rate” is 4.2% (for those of you who like the term “money factor” - 4.2% is equivalent to 0.00175). If this were the case, my fee for that rate would equal $115 per month.
I know my depreciation fee is exactly $235. I also know my tax (on the payment) is exactly 6%. However, I have been quoted a monthly payment of $399.54 (X+Y is not equaling Z).
$235 + $115 = $350 AND $350 + 6% equals $371 How did GMAC come up with $399?
I have also determined if my interest rate were actually 5.2 % (which happens to be exactly one percent higher than my quoted 4.2%), my payment comes out to $400 (which is essentially what they quoted me).
Here is my question. Does anyone know if GMAC has a fee of 1% hidden behind their advertised rate, or is my dealer (who knows I have a great deal) trying to sneak some profit back into his end of the deal?
Aug 28, 2006 (12:53 pm)
"sneak some profit back into his end of the deal?"
But, that is the way the smart money would bet...
#45 of 85 Re: GMAC (Saab) Lease [frykman]
Aug 28, 2006 (12:25 pm)
What about the lease acqusition fee?