Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Sedans Lexus LS 400/LS 430 Lexus LS 400/LS 430 Lease Questions 
54 messages, Last post on Jun 07, 2007 at 7:32 PM
You are in the Lexus LS 400/LS 430 Forum. Your Hosts are pat & karens
|
|
|---|---|
|
I too want to say thanks for the link to "how to calculate a lease". I followed it thru just fine, and thought it was well laid out. But can anyone explain the one bit of logic that seemed flawed to me. That is, the formula divides the depreciation of the auto (difference between MSRP and Residual) into the number of payments. That's fine. Then you calculate the interest on the car. The formula says add the residual to the MSRP!!?? In other words, you not only pay interest on the car, but on the residual value? Hunh? That's interest on 150-160% of the car. How can that be? Am I missing something in this logic? Thanks for all the excellent information.
|
|
|
Replying to: carguywannabe (Dec 15, 2005 2:35 pm) I hope this makes sense.. regards, kyfdx Host-Prices Paid Forums |
|
|
|
|
Replying to: kyfdx (Dec 15, 2005 8:11 pm) That does make sense. I guess should look at how the interest rate factors out to the money factor. Anyone have a formula for that. I mean, I read the "2400" figure, but I'd like to see the whole math, not just the "cheat" factor. Although it makes it simple. Much appreciated for the reply. |
|
|
|
|
Replying to: kyfdx (Dec 15, 2005 8:11 pm) Sorry to seem anal, but one more thing strikes me here. I get your average concept, being half of the sum of the residual plus the cap cost, but this also means you pay interest on the vehicle at msrp, even though you negotiated a better price. Doesn't it? This seems to diminish the value of negotiating a lower price somewhat, not totally. I haven't leased a car to date, but was considering it on a Lexus, so this conversation is much appreciated. Thanks.
|
|
|
Replying to: carguywannabe (Dec 15, 2005 9:06 pm) So, you are only paying the finance charge on the actual price you pay.. I explain the 2400 this way... The money factor is a fraction, while APR is expressed as a whole number.. multiply by 100 The money factor is for a monthly finance charge, while APR is annual.. multiply by 12 The money factor is half what it would normally be to account for the whole (Capcost + Residual) thing.. multiply by 2 100 X 12 X 2 = 2400 Or.. to make it possibly clearer (or not...lol) work your way backwards from an APR.. 6% APR.. Divide by 100 to convert to a fraction = .06 Divide by 12 to convert annual to monthly = .005 Divide by 2, to convert (Capcost + Residual) to an average of the two numbers = .0025 6% divided by 2400 = .0025 Hope this helps... kyfdx
|
|
|
|
|
Replying to: kyfdx (Dec 15, 2005 9:15 pm)  So this help me a lot. As I say, I've never leased, but having a better understanding of it now, I'd say it costs the same as buying. Only it involves paying more interests as you're deferring paying for a bunch of the capital. Thus the balance isn't declining as fast. And the trade off to paying more interest is an additional option (flexibility) at some point in the future where you have the choice to return the car. To another poster's point, if you have something better to use your money for now, leasing can certainly make sense. |
|
|
|
|
Hello, Carman. I am looking for 36 month money factor and residuals for the Lexus LS 430, 15,000 miles / year. I am hoping that there are some good lease numbers on this car now that the new model is on the horizon. Thank you. Mike
|
|
|
Hello, Carman. I am looking for 36 month money factor and residuals for the Lexus LS 430, 15,000 miles / year. I am hoping that there are some good lease numbers on this car now that the new model is on the horizon. Thank you. Mike Me too. But I would take 48 months if that gives a much better payment.
|
|
|
Replying to: ribbonking (Mar 26, 2006 3:04 pm) Car_man Host Smart Shopper / Prices Paid Forums |
|
|
Replying to: acctprof (Apr 03, 2006 7:05 am) Car_man Host Smart Shopper / Prices Paid Forums |
|
You are here:
Forums
Sedans Lexus LS 400/LS 430 Lexus LS 400/LS 430 Lease Questions
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
2006 Lexus LS 430
2000 Lexus LS 400
Browse by Board
Browse by Topic
Today's Chats
