Lease Help!!!!!
Thread Starter
Advanced
Joined: Jan 2006
Posts: 63
Likes: 0
Lease Help!!!!!
here is the whole situation, i just need to know if i am taking it in the rear on this deal.
looking to lease 2006 vy 2lt package.
trade ins-
97 coupe- i owe 14, trade in is "16500"
2005 pontiac g6- i owe 20, trade in "14500"
sales manager offered me.
60 month lease
38% residual
1500 down
payment 657/month?
is this a fair deal? am i getting killed. i dont know enough about how leases work, and i know this is the place to find out......
PLEASE HELP!
looking to lease 2006 vy 2lt package.
trade ins-
97 coupe- i owe 14, trade in is "16500"
2005 pontiac g6- i owe 20, trade in "14500"
sales manager offered me.
60 month lease
38% residual
1500 down
payment 657/month?
is this a fair deal? am i getting killed. i dont know enough about how leases work, and i know this is the place to find out......
PLEASE HELP!
Melting Slicks
Joined: Apr 2006
Posts: 2,094
Likes: 84
From: Miami FL
I'm not sure I understand your question because you're putting $1500 down and yet mention 2 different trade-ins.
Leases are simple: In your case, the car will be worth 38% of MSRP after 60 months, according to the dealer (whether true or not, I can't say: you'll have to do your own research on depreciation). That means you are paying for the difference, i.e., 62% of MSRP. $657 X 60 mos. = $39,420 + your downpayment of $1500 = $40,920. If you are not putting up either of your trade-ins, then you're paying $40,920 for 62% of the MSRP + interest. But if you're also putting up your equity in your '97 coupe, then your total cost is $43,420.
Figure out what your MSRP is and what 62% of that is, add taxes, etc., and whatever cash and equity your're putting up and add all that together and subtract it from the total of your payments and cash and equity. The difference is what they are charging you for interest on the depreciation you're paying for.
Hope this explanation helps.
Leases are simple: In your case, the car will be worth 38% of MSRP after 60 months, according to the dealer (whether true or not, I can't say: you'll have to do your own research on depreciation). That means you are paying for the difference, i.e., 62% of MSRP. $657 X 60 mos. = $39,420 + your downpayment of $1500 = $40,920. If you are not putting up either of your trade-ins, then you're paying $40,920 for 62% of the MSRP + interest. But if you're also putting up your equity in your '97 coupe, then your total cost is $43,420.
Figure out what your MSRP is and what 62% of that is, add taxes, etc., and whatever cash and equity your're putting up and add all that together and subtract it from the total of your payments and cash and equity. The difference is what they are charging you for interest on the depreciation you're paying for.
Hope this explanation helps.
Racer
Joined: Oct 2005
Posts: 409
Likes: 2
From: The Villages FL
Originally Posted by VetteRack74
here is the whole situation, i just need to know if i am taking it in the rear on this deal.
looking to lease 2006 vy 2lt package.
trade ins-
97 coupe- i owe 14, trade in is "16500"
2005 pontiac g6- i owe 20, trade in "14500"
sales manager offered me.
60 month lease
38% residual
1500 down
payment 657/month?
is this a fair deal? am i getting killed. i dont know enough about how leases work, and i know this is the place to find out......
PLEASE HELP!
looking to lease 2006 vy 2lt package.
trade ins-
97 coupe- i owe 14, trade in is "16500"
2005 pontiac g6- i owe 20, trade in "14500"
sales manager offered me.
60 month lease
38% residual
1500 down
payment 657/month?
is this a fair deal? am i getting killed. i dont know enough about how leases work, and i know this is the place to find out......
PLEASE HELP!
Thread Starter
Advanced
Joined: Jan 2006
Posts: 63
Likes: 0
Originally Posted by Corvette52
60 months is a long time. But, you owe more that the combined cars are worth, the 1500 is helping that. Get a competitive quote from kerbeck on a lease with no trade and sell the trades yourself to see if the deal is a good one. You better like it because you won't be able to get out of a lease easily. How many mile are allowed on the lease? Will it be enough?
the dealer is eating the negatve equity on my g6....
Thread Starter
Advanced
Joined: Jan 2006
Posts: 63
Likes: 0
Originally Posted by C6Jeff
I'm not sure I understand your question because you're putting $1500 down and yet mention 2 different trade-ins.
Leases are simple: In your case, the car will be worth 38% of MSRP after 60 months, according to the dealer (whether true or not, I can't say: you'll have to do your own research on depreciation). That means you are paying for the difference, i.e., 62% of MSRP. $657 X 60 mos. = $39,420 + your downpayment of $1500 = $40,920. If you are not putting up either of your trade-ins, then you're paying $40,920 for 62% of the MSRP + interest. But if you're also putting up your equity in your '97 coupe, then your total cost is $43,420.
Figure out what your MSRP is and what 62% of that is, add taxes, etc., and whatever cash and equity your're putting up and add all that together and subtract it from the total of your payments and cash and equity. The difference is what they are charging you for interest on the depreciation you're paying for.
Hope this explanation helps.
Leases are simple: In your case, the car will be worth 38% of MSRP after 60 months, according to the dealer (whether true or not, I can't say: you'll have to do your own research on depreciation). That means you are paying for the difference, i.e., 62% of MSRP. $657 X 60 mos. = $39,420 + your downpayment of $1500 = $40,920. If you are not putting up either of your trade-ins, then you're paying $40,920 for 62% of the MSRP + interest. But if you're also putting up your equity in your '97 coupe, then your total cost is $43,420.
Figure out what your MSRP is and what 62% of that is, add taxes, etc., and whatever cash and equity your're putting up and add all that together and subtract it from the total of your payments and cash and equity. The difference is what they are charging you for interest on the depreciation you're paying for.
Hope this explanation helps.
Team Owner
Joined: Aug 2003
Posts: 38,314
Likes: 35
Originally Posted by C6Jeff
Figure out what your MSRP is and what 62% of that is, add taxes, etc., and whatever cash and equity your're putting up and add all that together and subtract it from the total of your payments and cash and equity. The difference is what they are charging you for interest on the depreciation you're paying for.
Hope this explanation helps.
What??????????????
No, seriously, to the original poster, thats a bad deal. A 5year/60 month lease and when you pay out $40,920 you own nothing, and at the end of the lease they are liable to tack on excessive wear and tear if there is even a scratch on it.
Why not trade your 97 in on an '05 or '06 purchase? What do you have, $2,500.00 equity in it? Or better yet, sell the '97 yourself and use whatever you get above the 14K you owe as a down payment on a purchase.
Leasing, especially for that long, is a bad idea. That deal is about to take your 40,920.00 in down payment and 60 monthly payments, plus the $2500.00 equity you have in your '97.
43,920.00????? You can buy a nice C6 for 43,920.00 plus tax. If you were to finance 43,920 plus tax, how much would that run you monthly for a 60 month car loan? Probably not much more than what you are going to pay for that lease.
Also you mentioned that you would not be driving it in winter. But you are paying to put 75,000 miles on that car. If you put fewer miles than that on it, then it means that you paid for that privilage and didn't use it.
Last edited by '06 Quicksilver Z06; Jun 22, 2006 at 10:52 PM.
Team Owner
Joined: Dec 2003
Posts: 57,408
Likes: 164
From: queensbury ny
lease
The dealer does not SET THE RESIDUAL VALUE,THE MANUFACTURER DOES.The longer the term,the less the value....It's impossible to say if it's a good deal without you going to a few different dealers and working a deal w/them w/the same terms and see where the #'s end up.You can compare a purchase w/a 72 month note,for instance,to see how close the payment is to the lease pmnt.If it's real close,buy it,don't lease it.Lastly,the dealer is not EATING the negative equity in your trade,as you say.Dealers never do that,you do.You are refinancing the amount owed on your cars in the lease.You are eating the negative equity.The one(and there are a few)benefit to leasing is that you will have no NEGATIVE equity at the end,the down side,you have no car either!!
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2009 ZR1 SN 1166
Joined: Jan 2006
Posts: 1,654
Likes: 28
From: Toronto Ontario
Originally Posted by jesse12804
The dealer does not SET THE RESIDUAL VALUE,THE MANUFACTURER DOES.The longer the term,the less the value....It's impossible to say if it's a good deal without you going to a few different dealers and working a deal w/them w/the same terms and see where the #'s end up.You can compare a purchase w/a 72 month note,for instance,to see how close the payment is to the lease pmnt.If it's real close,buy it,don't lease it.Lastly,the dealer is not EATING the negative equity in your trade,as you say.Dealers never do that,you do.You are refinancing the amount owed on your cars in the lease.You are eating the negative equity.The one(and there are a few)benefit to leasing is that you will have no NEGATIVE equity at the end,the down side,you have no car either!!
Race Director
Joined: Dec 2002
Posts: 10,461
Likes: 1,149
From: Wayne Township WI
Originally Posted by DSOM Z51
What??????????????
No, seriously, to the original poster, thats a bad deal. A 5year/60 month lease and when you pay out $40,920 you own nothing, and at the end of the lease they are liable to tack on excessive wear and tear if there is even a scratch on it.
Why not trade your 97 in on an '05 or '06 purchase? What do you have, $2,500.00 equity in it? Or better yet, sell the '97 yourself and use whatever you get above the 14K you owe as a down payment on a purchase.
Leasing, especially for that long, is a bad idea. That deal is about to take your 40,920.00 in down payment and 60 monthly payments, plus the $2500.00 equity you have in your '97.
43,920.00????? You can buy a nice C6 for 43,920.00 plus tax. If you were to finance 43,920 plus tax, how much would that run you monthly for a 60 month car loan? Probably not much more than what you are going to pay for that lease.
Also you mentioned that you would not be driving it in winter. But you are paying to put 75,000 miles on that car. If you put fewer miles than that on it, then it means that you paid for that privilage and didn't use it.
No, seriously, to the original poster, thats a bad deal. A 5year/60 month lease and when you pay out $40,920 you own nothing, and at the end of the lease they are liable to tack on excessive wear and tear if there is even a scratch on it.
Why not trade your 97 in on an '05 or '06 purchase? What do you have, $2,500.00 equity in it? Or better yet, sell the '97 yourself and use whatever you get above the 14K you owe as a down payment on a purchase.
Leasing, especially for that long, is a bad idea. That deal is about to take your 40,920.00 in down payment and 60 monthly payments, plus the $2500.00 equity you have in your '97.
43,920.00????? You can buy a nice C6 for 43,920.00 plus tax. If you were to finance 43,920 plus tax, how much would that run you monthly for a 60 month car loan? Probably not much more than what you are going to pay for that lease.
Also you mentioned that you would not be driving it in winter. But you are paying to put 75,000 miles on that car. If you put fewer miles than that on it, then it means that you paid for that privilage and didn't use it.
Some very sage advise, ZMan.
Burning Brakes
Joined: Apr 2006
Posts: 896
Likes: 70
From: Orange Texas
I've looked into leasing before. I'm no financial genious by any means, but it seems like leasing is never a good deal. You have lower payments, but you still pay a lot, especially for cars like a vette, and you don't even own the car after the lease. I don't know your fiancial situation, but I would suggest you buy if you can. Just my 2 cents.
Le Mans Master
Joined: Mar 2006
Posts: 5,323
Likes: 2
From: Northern NJ
Originally Posted by C6Jeff
I'm not sure I understand your question because you're putting $1500 down and yet mention 2 different trade-ins.
Leases are simple: In your case, the car will be worth 38% of MSRP after 60 months, according to the dealer (whether true or not, I can't say: you'll have to do your own research on depreciation). That means you are paying for the difference, i.e., 62% of MSRP. $657 X 60 mos. = $39,420 + your downpayment of $1500 = $40,920. If you are not putting up either of your trade-ins, then you're paying $40,920 for 62% of the MSRP + interest. But if you're also putting up your equity in your '97 coupe, then your total cost is $43,420.
Figure out what your MSRP is and what 62% of that is, add taxes, etc., and whatever cash and equity your're putting up and add all that together and subtract it from the total of your payments and cash and equity. The difference is what they are charging you for interest on the depreciation you're paying for.
Hope this explanation helps.
Leases are simple: In your case, the car will be worth 38% of MSRP after 60 months, according to the dealer (whether true or not, I can't say: you'll have to do your own research on depreciation). That means you are paying for the difference, i.e., 62% of MSRP. $657 X 60 mos. = $39,420 + your downpayment of $1500 = $40,920. If you are not putting up either of your trade-ins, then you're paying $40,920 for 62% of the MSRP + interest. But if you're also putting up your equity in your '97 coupe, then your total cost is $43,420.
Figure out what your MSRP is and what 62% of that is, add taxes, etc., and whatever cash and equity your're putting up and add all that together and subtract it from the total of your payments and cash and equity. The difference is what they are charging you for interest on the depreciation you're paying for.
Hope this explanation helps.
$43,920 is 62% of $70,838. SO give or take a few bucks, that car, if you buy it at the end of the lease will cost you about $71,000. What is the MSRP? Work from there.
Intermediate
Joined: Oct 2005
Posts: 26
Likes: 0
From: New City New York
They only way to know if it a good deal is to figure the lease yourself. 1st figure out the value of the car you will use. Negotiate the price of the car. Then subtract the nogotiated price from the residual value (check edmonds.com for residual values). Then divide this number by the term of the lease. So far its Nogotiated price - residual value / term of lease.
Next you figure out how much interest you will pay. Ask the dealer what the "money factor" (interest on a lease) is. Then you add the negotiated price of the car and the residual value and multiply this by the money factor. Add this to the value of the car you will use and this (less taxes) is the lease payment.
Example: Nogotiated Price $45,000 - 17100 residual = 27900 / 60= $465 per month.
45000 + 17100 = $62100 X .0037 (assuming a 9% interest rate - divide interest rate by 24 to convert to money factor)= 229.77. $465+229.77= $694 (monthly payment + tax).
This example does not account for any down payment or trade in.
Next you figure out how much interest you will pay. Ask the dealer what the "money factor" (interest on a lease) is. Then you add the negotiated price of the car and the residual value and multiply this by the money factor. Add this to the value of the car you will use and this (less taxes) is the lease payment.
Example: Nogotiated Price $45,000 - 17100 residual = 27900 / 60= $465 per month.
45000 + 17100 = $62100 X .0037 (assuming a 9% interest rate - divide interest rate by 24 to convert to money factor)= 229.77. $465+229.77= $694 (monthly payment + tax).
This example does not account for any down payment or trade in.
Melting Slicks
Joined: Apr 2006
Posts: 2,094
Likes: 84
From: Miami FL
Originally Posted by jesse12804
The dealer does not SET THE RESIDUAL VALUE,THE MANUFACTURER DOES.
If the mfr is the leasing company, then they can use whatever residual value they want in order to make the lease attractive to the buyer and still profitable to the mfr. If the mfr is not the leasing company, then it is up to them to set the residual.
Leasing permits a person to get more car for less monthly payments but you don't build equity because you aren't paying for the entire car, you're just paying for the amount the car will depreciate in the term you will have it. A 60-month lease is a terrible idea.
Instructor
Joined: May 2006
Posts: 109
Likes: 0
Originally Posted by VetteRack74
here is the whole situation, i just need to know if i am taking it in the rear on this deal.
looking to lease 2006 vy 2lt package.
trade ins-
97 coupe- i owe 14, trade in is "16500"
2005 pontiac g6- i owe 20, trade in "14500"
sales manager offered me.
60 month lease
38% residual
1500 down
payment 657/month?
is this a fair deal? am i getting killed. i dont know enough about how leases work, and i know this is the place to find out......
PLEASE HELP!
looking to lease 2006 vy 2lt package.
trade ins-
97 coupe- i owe 14, trade in is "16500"
2005 pontiac g6- i owe 20, trade in "14500"
sales manager offered me.
60 month lease
38% residual
1500 down
payment 657/month?
is this a fair deal? am i getting killed. i dont know enough about how leases work, and i know this is the place to find out......
PLEASE HELP!
Looks like a great deal.
You are walking away from horrible negative equity on th G6.
Just do it!
