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Leasing a car
None | 01/07/2013 | Hingle McCringleberry

Posted on 01/07/2013 1:18:27 PM PST by Hot Tabasco

I have questions on how a dealership calculates a lease payment on a new car


TOPICS: Chit/Chat; Miscellaneous
KEYWORDS: autos; leases; vanity
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To: Hot Tabasco

Roughly:

List price of car - estimated value at end of lease / number of months of lease term = monthly lease payments.


21 posted on 01/07/2013 2:01:55 PM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: Zathras

It was only good if you owned your business.
No longer a good idea.
Free country.


22 posted on 01/07/2013 2:02:52 PM PST by Morris70
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To: Zathras

“I did it once, never again.
The car depreciates faster than your payments pay down the lease. I ended up paying another 8k at the end.”

What? That’s not right. The good thing about a lease is you don’t have to worry about depreciation. Unless you had an open end lease that are no longer in existence. Closed end leases have a “guaranteed future value” the residual that the lease co. is responsible for.


23 posted on 01/07/2013 2:07:05 PM PST by saleman (!!!!)
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To: Hot Tabasco
I contacted my local Honda dealer via email over the weekend and asked for a quote on an Accord EX-L coupe, with a MSRP of $28,785.00 according to the Honda pricing website.

...

So here's the kicker, I went to several internet sites that offered lease calculations and based on the MSRP, months of lease, sales tax included, the highest payment I came up with was approx. $221.00 per month.

I don't see how you can get a $221 per month lease on that car. Even if you get 0% interest on it, they are essentially saying that there is only a difference of $7,956 between the new car and the car after three years. A 2010 Accord EX-L with 36,000 miles on Kelley Blue Book was listed at $15,572 for an excellent trade in ($17,462 for private sale). AOL listed its MSRP at $26,080.

24 posted on 01/07/2013 2:09:23 PM PST by KarlInOhio (Choose one: the yellow and black flag of the Tea Party or the white flag of the Republican Party.)
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To: kenavi
For example, the trade-in value of an EX-L coupe with 36,000 miles (2010 model) has a Blue Book trade-in value of around $15,500.

Now that makes sense. I never factored in the drastic depreciation cost of the vehicle after 3 years and that's why the calculator I used came up with such a discrepancy between it and the dealer.

Here’s the calculator I used

25 posted on 01/07/2013 2:15:02 PM PST by Hot Tabasco (Jab her with a harpoon.....)
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To: KarlInOhio
A 2010 Accord EX-L with 36,000 miles on Kelley Blue Book was listed at $15,572

See my post #25......you're absolutely correct.

26 posted on 01/07/2013 2:19:36 PM PST by Hot Tabasco (Jab her with a harpoon.....)
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To: Cyman
: Posche Turbo for lease $119.00/mos x 5 years. Based on $180k down, 860 Fico score, $5 mill. net worth statement,

I saw it and almost went for it but turned it down since they're lousy in snow and winter is now here..........

27 posted on 01/07/2013 2:21:54 PM PST by Hot Tabasco (Jab her with a harpoon.....)
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To: Hot Tabasco

There are pros and cons to leasing. If you want low monthly payments, no out of pocket $, and you don’t drive more than 15k miles/yr. There are usually no repair costs because most leased cars are offered with warranties. If you buy new the depreciation is severe if you sell the car within 4/5 years. Any our of warranty problems can be costly. There are just too many variables to consider so you might want to speak with your accountant.


28 posted on 01/07/2013 3:33:09 PM PST by Son-Joshua (son-joshua)
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To: KoRn
The people that buy new and trade in for another every 2 or 3 years are total idiots, IMO.

Heh. When I was a young-skull-full-of-mush just out of college with my first decent-paying job, I had to have a new car every two years or so.

Then, in '84, I was front-ended in my brandy-new Bronco [oh, how I loved that truck]. It was totaled -- I survived and a switch clicked in my brain that made me realize they're all just a hunk of metal.

I still love vehicles, but haven't bought a new one since. Have had great cars and trucks -- can't complain about a one of them. And, boy, have I saved a ton of money.

29 posted on 01/07/2013 4:33:13 PM PST by BfloGuy (Money, like chocolate on a hot oven, was melting in the pockets of the people..)
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To: BfloGuy

Heh.... Don’t go TOO hard on your young self...

At least cars weren’t so crazy expensive back then, in relation to wages/pricing.


30 posted on 01/07/2013 5:51:45 PM PST by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: Rightly Biased

I think you forgot the sarcasm tag. Dave actually calls them “Fleeces”


31 posted on 01/07/2013 8:26:23 PM PST by representativerepublic (...loose lips, sink ships)
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To: representativerepublic

Did I really need the sarcasm tag?


32 posted on 01/08/2013 5:28:09 AM PST by Rightly Biased (Avenge me Girls AVENEGE ME!!!! ( I don't have any son's))
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