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kidalex
09-02-2009, 04:40 AM
I'm looking to lease the new XF but it seems that all banks are very confused about lease programs and it's impossible to get a good lease even with a great credit score.

Does anybody know of any insentives or tricks on how to get a good lease nowdays?

Is this the best time to buy or should I wait for another few weeks?

AlexAlex G
=====================================
2003 BMW 745i
1999 Lexus GS
<img src="http://alexandmay.com/745i/5.jpg">

Gabriel
09-02-2009, 12:10 PM
It depends on what you mean by great lease program. What else are you considering? If your looking at V8 German sedans, then the XF lease programs are right at par. If you are looking at 6 cylinder German cars then the XF will seem high, as it should, since it's so much more car.

If your looking at a Lincoln, no Jaguar will ever go that low again.

Best lease on a 2010 Luxury with good credit is on a 36/10k for $599++ with $4k down ++

kidalex
09-02-2009, 08:20 PM
I'm definately looking at about 15,000mi/year and I want to prepay the whole lease. But my problem is that that the lowest quote I got was $30K ( all included ). When I got my Lexus GS300 which was the same price as the XF I pre-paid $19,000.

What gives?Alex G
=====================================
2003 BMW 745i
1999 Lexus GS
<img src="http://alexandmay.com/745i/5.jpg">

jagular
09-02-2009, 10:10 PM
The thing to remember about leasing is you are not buying the whole car. You buy the difference between the sale price and a fictitious number called the "residual" which is the estimated value of the car at the end of the lease. This residual number burned a bunch of car makers and lessors recently so everyone is reducing the residuals. this does not actually affect the total cost of buying the car UNLESS you do not intend to keep it.

That's the weird thing.

If you have good credit and do not need to use it for anything more important you should never lease and always buy. Unless you don;t really like the car.

As I said, leasing is a weird way to finance a consumer good.

kidalex
09-03-2009, 03:17 AM
I've always leased. I do not intent to buy ever. I understand the issue with residuals going down but they have to make up for it in some other ways like lower financial charges or lower prices. Plus, the difference is too huge.Alex G
=====================================
2003 BMW 745i
1999 Lexus GS
<img src="http://alexandmay.com/745i/5.jpg">

jagular
09-06-2009, 04:31 PM
This cannot be "Made up" in some other way. The price is the price at which the manufacturer chooses or is forced to sell the car new, and the depreciation is what the market does, nothing to do with the choices of the manuafacturer.

If you always lease and never buy then you tend to have to buy cars that everyone else likes. Jaguars are not yet in that category and are unliley to ever get there.

Generally speaking if you buy for the long term then depreciation rates are pretty much irrelevant. If you buy intending to buy a replacement in 2 to 5 years then depreciation rates are important. They are beyond the control of the manufacturer though except indirectly through market forces that are currently driving all cars towards the same dull appliance like configuration.

This fails to explain why unreliable cars like Mercedes and BMW have high resiudals similar to a Lexus whereas the more reliable Jaguars depreciate faster. You will never find a good lease deal on a Jaguar that comes close to a BMW or Lexus.

Then again, only a fool would pay those residuals at the end of a lease on a BMW or Mercedes. A Jaguar is a better buy at the end of the lease.

Gabriel
09-10-2009, 07:44 PM
Which many customers do.

Not only can you save several thousands of dollars compared to a financing but I also had a customer save almost $2k by leasing first then buying the residual, compared to paying cash. The rebates available only applied to a lease, he saved money on only paying taxes on the monthly payment and on the residual rather than the whole and has the choice of returning the car at lease end if the value is worth less than the market.

It also depends on what State you live in as the programs and State fees make leasing more expensive.

jagular
09-10-2009, 08:17 PM
in the world of high finance but it is pretty rare for leasing to beat buying unless you don't intend to buy the car at the end of the lease.

As for taxes on leasing being less than taxes on buying, well, not in Canada. We pay taxes on the sale price of the car but not on carrying charges for the loan. If you lease you pay tax on the entire lease payment.

The basic facts are that leasing is purchasing the depreciated portion of the car only and also paying carrying charges on the residual. From an accounting perspective this cannot be cheaper than doing the same thing with a loan unless the financing rate from the leasing company is less than the interest charge from your lender. I know this because my Bank invented the "guaranteed buy back" loan when Canadian Banks were prohibited from financing leasing deals.

There can be NO difference between a lease and a loan that requires only that you pay interest on the whole price and principal only on the expected depreciation rate as long as the creditor also guarantees that the vehicle will be purchased by the creditor at the end of the lease for its agreed in advance residual value, regardless of actual market value.

If one method of financing is advantageous it is because either a special pricing is available only for leasing (which is one thing that got the car manufacturers into such trouble recently) or some dim bulb is undercutting the financing rates charged by most financing entities.

Gabriel
09-16-2009, 09:47 AM
Yep, and on the 2009's just before Jag credit stopped leasing them (only 2010's now) the discount was so heavy that it saved my customer (who was going to pay cash and had the numbers reviewed by his companies (he's the owner) finance guy. He saved just under $2k by leasing first then buying out the residual.

Doesn't happen against cash buyers much, more on financing customers.

Gabriel
09-18-2009, 04:48 PM
send me a email for more info


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