Last post on Sep 12, 2008 at 2:15 AM
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Saab 9-7X, Car Leasing, SUV
#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?
#46 of 85 Re: GMAC (Saab) Lease [coppamc]
Aug 29, 2006 (4:09 am)
That's a thought, but I don't think any acqusition fee is hiking the rate like that. Their payment quote is $371 ($29 per month higher than my math indicates it ought to be), which is a difference of $783.00. I'll let you know if I am able to figure it out and/or what "I am told".
Take care and thanks for the reply.
#47 of 85 Re: GMAC (Saab) Lease [frykman]
Aug 29, 2006 (12:43 pm)
Just when I thought it couldn’t get any better...
Well, it turns out the figures my dealer quoted me were dead on. The reason my numbers failed to add up is this: GMAC charges interest, not only on the vehicle itself - but on the depreciation value as well. Nevertheless, I was happy when my dealer informed me (today) that Saab just added an additional $1500 cash off incentive as part of a Labor Day special. As a result, my payment dropped an addition $60
Vehicle stats are in my post above:
$670 down (includes first month payment) for Drive Off
$368 per month
18000 miles/year (I added $25 per month to the $342 payment quoted for 15000 miles/year)
27 Month lease.
#48 of 85 Re: My leasing Offer [sharonnj]
Sep 07, 2006 (2:22 am)
Hi sharonnj. I would be happy to give you my opinion of this deal if you provide me with this vehicle's full MSRP. This number will show me how much of a discount you are being given on it and will enable me to use Saab's actual lease program to estimate what its monthly payment should be.
Prices Paid Forum
#49 of 85 Re: GMAC (Saab) Lease [frykman]
Sep 07, 2006 (2:27 am)
Hi frykman. The method that was used to calculate the sales tax on your 9-7X has nothing to do with GMAC. The way that sales tax is charged on vehicles varies from state to state. Congratulations on getting such a good deal on your truck. The extra bonus cash that was available out there over Labor Day made for some excellent deals. I'm glad to hear that you were able to take advantage of it. Enjoy your new ride.
Prices Paid Forum
#50 of 85 Re: GMAC (Saab) Lease [Car_man]
Sep 07, 2006 (9:52 am)
Thank you Car_man.
Indeed, The Labor Day bonus was a nice surprise (I'll take luck over negotiating skill everyday of the week). Nevertheless, I still do not fully understand the interest rate. It's more complex than I would expect. Even lease calculators I find on the internet don't arrive at the same figures as GMAC. I understand the sales tax (it's just 6% of the payment).
#51 of 85 Re: GMAC (Saab) Lease [frykman]
Sep 28, 2006 (2:35 am)
You're very welcome, frykman.
Prices Paid Forum
Mar 12, 2007 (4:41 pm)
Hey Car Man. Any info on the money factor for 3yr 15K miles in Florida? Also, any reason no one is looking for info on this vehicle? I have not looked at one yet, but it has received pretty good reviews. Thanks.