- #265 of 284
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Re: Negotiate low or no downpayment? [delta737h]
by looking4asoob
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Mar 24, 2008 (10:35 am)
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Replying to: delta737h (Mar 24, 2008 9:22 am)
The numbers had me confused as well. The $179 deal is listed on the San Diego, CA dealer website www.mossynissan.com. Of couse that doesn't give all the info, the additional information is directly from the internet Salesman. My fear is the hidden gotcha. Any hints on the right questions to ask about this deal?
My local tax rate is 7.75%. I really appreciate the formulas. I have found lots of information, but I do best with numbers.
Thank you!
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- #266 of 284
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Re: Negotiate low or no downpayment? [looking4asoob]
by looking4asoob
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Mar 24, 2008 (12:17 pm)
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Replying to: looking4asoob (Mar 24, 2008 10:35 am)
ok, thanks to the formunla from delta737h, I think the numbers now make sense (please correct me if I am wrong). The confusion is the listed capital cost is the dealer discount off MSRP, but not the down payment cap cost reduction. So here is my calc:
Down payment(minus 1st mo payment): $3816 ($3995 - $179 )
Cap cost: $21721 ($25537 - $3816)
So Payment = 0.00145 x (21721 + 18942) + (21721 - 18942)/24 = 175
So to calculate a no down payment would it be just this formula?
Payment = 0.00145 x (25,537 + 18,942) + (25,537 - 18,942)/24 = 339
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- #267 of 284
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Re: Negotiate low or no downpayment? [looking4asoob]
by delta737h
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Mar 24, 2008 (3:21 pm)
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Replying to: looking4asoob (Mar 24, 2008 12:17 pm)
Does the 3995 include the acq. fee? My guess is that it does include this fee as well as the first payment (179) and, perhaps the security deposit? The 3816 looks like a very weird down payment and so it's not very likely that it is. You need assess the exact break down of the 3995.
John
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- #268 of 284
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Re: Negotiate low or no downpayment? [looking4asoob]
by qbrozen
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Mar 25, 2008 (10:06 am)
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Replying to: looking4asoob (Mar 24, 2008 12:17 pm)
The confusion is the listed capital cost is the dealer discount off MSRP
So they are only knocking $1100 off MSRP?? Seems to me they could do much better.
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- #269 of 284
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Re: Negotiate low or no downpayment? [qbrozen]
by looking4asoob
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Mar 25, 2008 (11:47 am)
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Replying to: qbrozen (Mar 25, 2008 10:06 am)
The $25537 is only $1100 off MSRP, but it includes destination and acquisition fees. Factoring those the price seemed in line with Edmunds TMV price. Or is the market such that people are getting better than TMV pricing?
Thanks!
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- #270 of 284
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Re: Negotiate low or no downpayment? [looking4asoob]
by cccompson
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Mar 25, 2008 (1:16 pm)
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Replying to: looking4asoob (Mar 25, 2008 11:47 am)
It sounds like a piddly discount given the current market for SUVs.
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- #271 of 284
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Re: Negotiate low or no downpayment? [looking4asoob]
by qbrozen
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Mar 26, 2008 (9:04 am)
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Replying to: looking4asoob (Mar 25, 2008 11:47 am)
I've always done better than TMV.
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- #272 of 284
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How is residual value determined?
by confused13
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Jul 25, 2008 (7:07 am)
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On a 36-month lease, should the residual value be similar to retail blue book or trade-in value or something else altogether?
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- #273 of 284
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Re: How is residual value determined? [confused13]
by volvomax
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Jul 25, 2008 (7:23 am)
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Replying to: confused13 (Jul 25, 2008 7:07 am)
On a 36-month lease, should the residual value be similar to retail blue book or trade-in value or something else altogether?
In a perfect world, residual would be akin to wholesale book value.
However, most of the time a residual value is just pulled out of a hat.
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- #274 of 284
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Re: How is residual value determined? [confused13]
by kyfdx HOST
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Jul 25, 2008 (7:55 am)
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Replying to: confused13 (Jul 25, 2008 7:07 am)
The residual is set by the leasing bank.. It is almost always a set percentage of the MSRP, with variances according to model, trim, term and mileage allowance.
Ideally, it is set to match the expected wholesale value of the vehicle, though sometimes the number is inflated to incentivize the lease payment.
regards,
kyfdx
visiting host
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