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MB
01-30-1999, 10:29 PM
I was quoted $350 a month before taxes, 36 months, 10k per year with $3600 cash down. The cap cost was $31,555. The residual was quoted at $22k. I started thinking- my payments would total about 16k, plus the 22k residual, I'd be paying $38k for a $31,555 car. What is the problem here? What would you tell them?

FrankRizzo
01-30-1999, 10:47 PM
<i>: I was quoted $350 a month before taxes, 36 months, 10k per year with $3600 cash down. The cap cost was $31,555. The residual was quoted at $22k. I started thinking- my payments would total about 16k, plus the 22k residual, I'd be paying $38k for a $31,555 car. What is the problem here? What would you tell them?<br></i><p>The 2 things missing to tell if you are getting a good deal or not are:<p>1. the Money Factor (Interest Rate).<br>2. the MSRP of the car.<p>If you can give me those, I can run the numbers through my "leasing Spreadsheet", and see if they jive.

MB
01-30-1999, 10:56 PM
<i>: : I was quoted $350 a month before taxes, 36 months, 10k per year with $3600 cash down. The cap cost was $31,555. The residual was quoted at $22k. I started thinking- my payments would total about 16k, plus the 22k residual, I'd be paying $38k for a $31,555 car. What is the problem here? What would you tell them?<p>: The 2 things missing to tell if you are getting a good deal or not are:<p>: 1. the Money Factor (Interest Rate).<br>: 2. the MSRP of the car.<p>: If you can give me those, I can run the numbers through my "leasing Spreadsheet", and see if they jive.<p></i>

FrankRizzo
01-30-1999, 11:03 PM
If you want it.. It's not a pretty thing, I used it back when I thought I wanted a Passat.

Bimmer Dude
01-31-1999, 01:57 AM
Actually, you need to compare your total lease costs with buying it and financing it. Obviously, leasing will cost more than paying cash. For your lease you may want to even figure your total cost for financing the residual if you should buy it at the end of the lease.<p>Other than paying cash, leasing and financing all involve interest.<p>BD<p>

MB
01-31-1999, 07:35 AM
<i>: If you want it.. It's not a pretty thing, I used it back when I thought I wanted a Passat.<p></i>

Mike C
01-31-1999, 08:04 AM
You must remember that leasing is just another form of financing with a guaranteed selling price (residual) at the end of the lease. It is fairly simple to estimate a lease pymt if you have the following details - <br>Sales price (gross capitalized cost)<br>Residual value (generally a % of MSRP)<br>Down payment<br>Net cap cost(sales price less down pymt)<br>Effective interest rate<br>Lease term in months<p>To calculate the estimated lease pymt, see part 2

Mike C
01-31-1999, 08:10 AM
Sales price less residual equals the amount you will be actually paying for over the lease term. Subtract down payment from this and then calculate loan payment using known lease term and interest rate. Calculate interest only on the residual (int rate *residual / 12) and add to the payment calculated above. This should approximate your lease payment before sales tax. Any variance from this and the actual payment quoted by the dealer is addtl dealer profit.

Mike C
01-31-1999, 08:12 AM
It is hard to succinctly describe the calculation, but hopefully this is helpful to some. I have used this method to confirm lease payment calculations on my last two leased vehicles with payments coming within $1-$2 of the actual.<p>Mike

FrankRizzo
01-31-1999, 01:41 PM
<i>: : If you want it.. It's not a pretty thing, I used it back when I thought I wanted a Passat.<br></i><p>I would need an address though..

MB
01-31-1999, 04:22 PM
<i>: : : If you want it.. It's not a pretty thing, I used it back when I thought I wanted a Passat.<p>: I would need an address though..<p></i>

Steve
02-01-1999, 11:17 AM
<i>: I was quoted $350 a month before taxes, 36 months, 10k per year with $3600 cash down. The cap cost was $31,555. The residual was quoted at $22k. I started thinking- my payments would total about 16k, plus the 22k residual, I'd be paying $38k for a $31,555 car. What is the problem here? What would you tell them?<p></i>

Steve
02-01-1999, 11:27 AM
<i>: : I was quoted $350 a month before taxes, 36 months, 10k per year with $3600 cash down. The cap cost was $31,555. The residual was quoted at $22k. I started thinking- my payments would total about 16k, plus the 22k residual, I'd be paying $38k for a $31,555 car. What is the problem here? What would you tell them?<p></i>

christine s
02-01-1999, 02:04 PM
http://smartmoney.lycos.com/ac/autos/leasing/index.cfm?story=cc#2<br>This will give you the calculated interest amount you're paying, etc. There are links to help you w/ residual values etc if you don't know them (% of MSRP). I'm on a 36-month lease myself with BMW (2.9% gotta love it) with $0 down and $450/ mo tax on a '98 Z3 ($37,000 sticker). The residual on that car is 58% of MSRP no matter what I actually negotiated for the car price . I negotiated to $33K so the difference means my lease pmts were less. I'm not going to buy it out at the end so FOR ME leasing made much more sense, but it's individual. If you're going to keep the car, loans are always less total cost than leases...<br>Hope this helps also! :)

or 10k
02-02-1999, 04:18 PM
<i>: : : I was quoted $350 a month before taxes, 36 months, 10k per year with $3600 cash down. The cap cost was $31,555. The residual was quoted at $22k. I started thinking- my payments would total about 16k, plus the 22k residual, I'd be paying $38k for a $31,555 car. What is the problem here? What would you tell them?<p></i>


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