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!
Cruise-In VIII Veteran
Joined: Sep 2005
Posts: 1,811
Likes: 21
From: Bloomingdale, IL
Cruise-In IX Veteran
St. Jude Donor '06-'07-'08-'09-'10-'11
Originally Posted by 4Ever21
So your trade in value is like $31,000 and its still $657 a month? If so thats screwed up.
Drifting
Joined: Jul 2003
Posts: 1,307
Likes: 1
From: St Clair Shores MI - GO HOKIES
St. Jude Donor '05-'06
Well 657*60 months is 39430 and you are trading in 31K which means you are paying more or less 70 grand for this car, and you owe 3 for the cars you are trading in. Any particular reason you want a FIVE year lease? That is the normal period to BUY a car. Why not trade in the 31000 worth of cars, have the three you still owed rolled into the new loan and have a loan for like 25 grand for 5 years which would be a fairly reasonable amount. For 657 a month you should be able to buy this car and eat steak three nights a week with those trade ins... my two cents...
Moderator
Joined: Jul 2005
Posts: 29,339
Likes: 3,884
From: West MI
CF Banner Relay Captain
West MI & JAX/NE Florida
Events Coordinator
St. Jude Donor '11-'17, '21
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!
You will be paying over $42000 to Lease the C6 for 5 years. The lease payments are pretty average with the negative equity and $1500 down. The payments to purchase would be about twice that depending on the total cost of the car. I would go for a shorter lease. At the end of the lease how much is the pay off?
Moderator
Joined: Jul 2005
Posts: 29,339
Likes: 3,884
From: West MI
CF Banner Relay Captain
West MI & JAX/NE Florida
Events Coordinator
St. Jude Donor '11-'17, '21
Originally Posted by 4Ever21
So your trade in value is like $31,000 and its still $657 a month? If so thats screwed up.
Thread Starter
Advanced
Joined: Jan 2006
Posts: 63
Likes: 0
Originally Posted by DebRedC504
His trade in value is a negative $3000 with what he owes.
if you ad the equity from my 97, my trade in value is a NEGATIVE $3000
at 38% my payoff at the end is 18, a would assume i could get 18 for this car in my sleep in 5 years?
Corvette Stories
The Best of Corvette for Corvette Enthusiasts
Top 10 Most Explosive Corvettes Ever Made: Power-to-Weight Ratio Ranked!
Joe Kucinski
150 hp to 1,250 hp: Every Corvette Generation Compared by the Specs That Matter
Joe Kucinski
8 Coolest Corvette Pace Cars (and Replicas) of All Time
Verdad Gallardo
Top 10 Corvette Engines RANKED by Peak Torque (70+ Years of Muscle!)
Joe Kucinski
Corvette ZR1X Will Be Pacing the Indy 500, And Could Probably Race, Too!
Verdad Gallardo
Top 10 Corvettes Coming to Mecum Indy 2026!
Brett Foote
Top 10 C9 Corvette MUST-HAVES to Fix These C8 Generation Flaws!
Michael S. Palmer
10 Revolutionary 'Corvette Firsts' Most People Don't Know
Joe Kucinski
5 Reasons to Upgrade to an LS6-Powered Corvette; 5 Reasons to Stay LT2
Michael S. Palmer
Moderator
Joined: Jul 2005
Posts: 29,339
Likes: 3,884
From: West MI
CF Banner Relay Captain
West MI & JAX/NE Florida
Events Coordinator
St. Jude Donor '11-'17, '21
Originally Posted by VetteRack74
thank you! someone finally got what i was trying to say! i am not paying anymore on the two cars i am trading in. so, the car i owe 20 on, i now owe nothing.
if you ad the equity from my 97, my trade in value is a NEGATIVE $3000
at 38% my payoff at the end is 18, a would assume i could get 18 for this car in my sleep in 5 years?
if you ad the equity from my 97, my trade in value is a NEGATIVE $3000
at 38% my payoff at the end is 18, a would assume i could get 18 for this car in my sleep in 5 years?
Le Mans Master
Joined: Oct 2001
Posts: 5,145
Likes: 125
From: The Motor City
But you're still paying $40,920 for 5 years for a car that you don't own and have to give back at the end of the 5th year. That $18k might seem low but that's because you've already paid for the rest of the car. Now finance that $18k over 3 years at 5% = $539 per month. By the time you have paid off the car, you have paid $60,342 over the past 8 years to buy the car. (All of this math is ignoring the time value of money.) Seems like a bad deal to me.
If you were to buy the car outright (46k sticker price+3k negative equity on trade-ins) for 72 months at 5% is a monthly payment of $789. Sum of monthly payments is $56,808. If you were to take into account the time value of money and bring all dollar amounts to a present value, the purchase option would look even better than the lease. Plus, nobody pays sticker price for a base C6 so the math is "worst case scenario".
As Hokie asked above... why a 5 year lease?!?!?
If you were to buy the car outright (46k sticker price+3k negative equity on trade-ins) for 72 months at 5% is a monthly payment of $789. Sum of monthly payments is $56,808. If you were to take into account the time value of money and bring all dollar amounts to a present value, the purchase option would look even better than the lease. Plus, nobody pays sticker price for a base C6 so the math is "worst case scenario".
As Hokie asked above... why a 5 year lease?!?!?
Le Mans Master
Joined: Oct 2001
Posts: 5,145
Likes: 125
From: The Motor City
Originally Posted by DebRedC504
$18K seems like a real deal if that is the actual number as the car will be worth well beyond that.
Drifting
Joined: Jul 2003
Posts: 1,307
Likes: 1
From: St Clair Shores MI - GO HOKIES
St. Jude Donor '05-'06
Without delving back into the numbers there is NO way this lease is a good deal..go to www.dinkytown.net and use some of their financial calculators. There is just no way by putting a trade in of essentially 28 K [trade in - the 3K you would still owe, I understand that part] on a 50K car you should pay that much, and again if you can make a downpayment of over 50% of the car, just buy it, it will probably be worth more to own at the end than it would be to buy out the lease which I have never heard of working out for the lessee
Le Mans Master
Joined: Oct 2001
Posts: 5,145
Likes: 125
From: The Motor City
Mike,
I don't think you're understanding the trade-in deal correctly. He owes more than the cars are worth, so his trade-in is a negative $3k, not positive $28k. With his downpayment of $1500, he's still financing $1500 more than the purchase price of the Vette. My friends seem to do the "negative equity trade-in" thing the time. They never put a downpayment and are always upside-down on their vehicles.
I don't think you're understanding the trade-in deal correctly. He owes more than the cars are worth, so his trade-in is a negative $3k, not positive $28k. With his downpayment of $1500, he's still financing $1500 more than the purchase price of the Vette. My friends seem to do the "negative equity trade-in" thing the time. They never put a downpayment and are always upside-down on their vehicles.
Moderator
Joined: Jul 2005
Posts: 29,339
Likes: 3,884
From: West MI
CF Banner Relay Captain
West MI & JAX/NE Florida
Events Coordinator
St. Jude Donor '11-'17, '21
Originally Posted by Scooter70
Mike,
I don't think you're understanding the trade-in deal correctly. He owes more than the cars are worth, so his trade-in is a negative $3k, not positive $28k. With his downpayment of $1500, he's still financing $1500 more than the purchase price of the Vette. My friends seem to do the "negative equity trade-in" thing the time. They never put a downpayment and are always upside-down on their vehicles.
I don't think you're understanding the trade-in deal correctly. He owes more than the cars are worth, so his trade-in is a negative $3k, not positive $28k. With his downpayment of $1500, he's still financing $1500 more than the purchase price of the Vette. My friends seem to do the "negative equity trade-in" thing the time. They never put a downpayment and are always upside-down on their vehicles.
Melting Slicks
Joined: Feb 2003
Posts: 2,770
Likes: 0
From: Construction Sucks! MI
Cruise-In V Veteran
St. Jude Contributor '03 & '05
You owe $3000
Car is worth $47000
You are going to put down $1500
Buy
Financing $48500 @ 5% over 60 months = $915/month
Lease
Dealer is charging you $657/month
If you have a 38% residual over 60 months the car has depreciated $29,000 (plus the $1500 you owe). To have $18000 left to pay after 60 months, you're payments would be right where he's charging you.
If you really want to lease for 60 months, you are left to try and negotiate the base price or the residual value. otherwise the numbers the dealer is giving you are right on for these assumptions.
Car is worth $47000
You are going to put down $1500
Buy
Financing $48500 @ 5% over 60 months = $915/month
Lease
Dealer is charging you $657/month
If you have a 38% residual over 60 months the car has depreciated $29,000 (plus the $1500 you owe). To have $18000 left to pay after 60 months, you're payments would be right where he's charging you.
If you really want to lease for 60 months, you are left to try and negotiate the base price or the residual value. otherwise the numbers the dealer is giving you are right on for these assumptions.
