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Prices Paid: Buying & Leasing Experiences Toyota Sienna Lease Questions
272 messages, Last post on Dec 07, 2009 at 8:19 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
I'm looking for any info on Q1 or early Q2 lease specials on 05 or 06 Sienna's XLE in Tennessee. Anyone have any help
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Replying to: tnautel (Jan 23, 2006 7:08 pm) Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: vbellino (Jan 31, 2006 1:16 pm) Car_man Host Smart Shopper / Prices Paid Forums
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Replying to: girosc (Feb 01, 2006 8:24 am) Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: Car_man (Feb 08, 2006 2:37 am) |
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Car_Man thanks for the info on rate lease money factor and residual, but can you please explain the mechanics of lease factor and residual, i.e. a real life example and and those numbers play a part? i'm new to leasing. Thanks in advance for the "dummies" explanation.
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Hi car_Man, Could you give me an idea of payments for this vehicle on a 36 month, 36K mile lease, please? MSRP is $30988, and was given price at invoice of $27868 plus $750 rebate in Colorado. Thanks 
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Replying to: tnautel (Jan 23, 2006 7:08 pm) Can you tell me if you think this lease makes sense? The purchase price for the vehicle would be 28,653. We are trading in a 2000 Subaru Outback for $7500. However, we have chosen to roll the $1700 we still owe on the Subaru into the lease. For 36 mos and 12k the monthly payment is $229. Thanks! Tnautel, the reason your lease payment is so low, even though you are rolling the $1700 negative equity into the lease, is that you are also putting $7500 down (your Subaru trade-in). I don't think you are clearly stating the current case with your Subaru. Let me try to interpret. You can't possibly be saying you owe $9200 but are only getting $7500 for your trade, so you have $1700 in negative equity. Your payment would not be $229/month if that were the case. I am not sure, but it sounds like you are getting $7500 for the car, but you still owe $1700. As I see it, you are on the plus side with a net down payment of $7500 - $1700 = $5800. That really isn't negative equity, unless I am misunderstanding what you are saying. Since you sound new to leasing, I would strongly caution you against putting this money down on the new van. It is very unwise to put any money down on a lease. If the van were to be totaled or stolen in the next couple of months to a year for any reason, you will never see that money again. It will all go towards the depreciation of the van. You should instead get gap insurance, which would pay for this "gap" between what you have paid and what you would owe at that point. Remember, cars depreciate a lot in the beginning. Putting the money down yourself would be, in essence, like self-insuring the gap. Another reason this is unwise is that the money you put down is taxed. Also, when you put money down, you are basically lowering your monthly payments. If all you see in this deal is a low monthly payment, you should think again. The $5800 you are putting down is basically lowering your monthly payment by about $161/month ($5800/36 months = $161). If you instead asked the dealer for a check of your positive equity, you would get the $5800 to do with as you please, and your monthly payment would go up to about $390/month. You could just put the $5800 in the bank and use some of it every month to make your higher payment. Hopefully you would be earning interest off of the money, making the money work for you instead of the dealer or the government or anybody else that is in on this deal when you put $5800 down on a lease. |
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Replying to: girosc (Feb 15, 2006 12:12 pm) Girosc, the lease factor is just lease speak for the interest rate. It is also called the money factor. To convert to an interest rate, multiply the lease factor by 24. For example, if the lease factor is 0.0020, multiply by 24 and get 0.048. Then convert this decimal to a percentage, or 4.8%. The residual is how much the vehicle should be worth at the end of the lease. This is important because you are paying for the depreciation of the vehicle during the lease. If the car's MSRP is $30,000 and the residual is $18,000, you are paying for the difference, or the depreciation, which is $12,000. As you can see, it now becomes very important to negotiate the price of the vehicle, often called the cap cost. If the MSRP is $30,000, but you negotiate to buy the car for $28,000, you pay less in depreciation costs. The residual does not change, as it is set by the finace company. It is non-negotiable. In this example, you would only pay $10,000 in depreciation. I suggest you do a lot more homework on leases before you get into one. There are several tutorials and articles about leasing, including great explanations for all of the terms involved with leasing, available here at Edmunds.com. Good Luck! |
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Replying to: girosc (Feb 15, 2006 12:12 pm) Car_man Host Smart Shopper / Prices Paid Forums |
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