G70 Lease Comparisons and Discussion (USA)

[ACCHRM]

Did you checkout the V90? Besides the Panamera Sport Turismo, I think it's the best looking wagon on sale today.View attachment 15485

I was initially waiting for the V60, super sexy wagon, but it only comes in a T6 AWD, which I don't need and I'm assuming as a Inscription or R Design that will put it at close to 50k, which is out of my range. I grew up in Europe so I'm all into wagons!

 

[BlancaGenny]

I was initially waiting for the V60, super sexy wagon, but it only comes in a T6 AWD, which I don't need and I'm assuming as a Inscription or R Design that will put it at close to 50k, which is out of my range. I grew up in Europe so I'm all into wagons!

Both look good, it's a win either way!

 

[Beefer]

Question about leases. I have leased 3 cars in the past. Since they were affordable...I always did zero down.

Now that I am getting into more expensive cars...what are thoughts on putting money down on a lease?

I have heard that it is bad to do so. Reason is...if anything ever happens...you instantly lose that money. Makes sense...if that is correct.

What about putting down taxes and fees?

 

[larrymg1]

Question about leases. I have leased 3 cars in the past. Since they were affordable...I always did zero down.

Now that I am getting into more expensive cars...what are thoughts on putting money down on a lease?

I have heard that it is bad to do so. Reason is...if anything ever happens...you instantly lose that money. Makes sense...if that is correct.

What about putting down taxes and fees?

IMO, no or very little down. I have leased several dozen cars over the last 40+ years and have never put anything down. If payments are out of your budget would be the only reason I would put money down.

 

[danygenesis]

Question about leases. I have leased 3 cars in the past. Since they were affordable...I always did zero down.

Now that I am getting into more expensive cars...what are thoughts on putting money down on a lease?

I have heard that it is bad to do so. Reason is...if anything ever happens...you instantly lose that money. Makes sense...if that is correct.

What about putting down taxes and fees?

No taxes upfront, you will lose them too if something goes wrong. Just pay fees. That could include Bank acquisition fee and dealers fees but no more than that.

 

[Beefer]

No taxes upfront, you will lose them too if something goes wrong. Just pay fees. That could include Bank acquisition fee and dealers fees but no more than that.

Thanks...makes sense.

This is what worries me. Car is available...the exact one I want !!! Then we start talking numbers. If they upcharge...I walk...no way. But if they stay at MSRP...then the MF, residual, etc come into play. What if it's all awful? Waiting this long for the car only to find out the leasing numbers are awful...and I would have to walk. It's always something !!!

 

[danygenesis]

Thanks...makes sense.

This is what worries me. Car is available...the exact one I want !!! Then we start talking numbers. If they upcharge...I walk...no way. But if they stay at MSRP...then the MF, residual, etc come into play. What if it's all awful? Waiting this long for the car only to find out the leasing numbers are awful...and I would have to walk. It's always something !!!

Unfortunately that's another thing we need to wait for too. The car first and then the leasing terms later. G70 is becoming the neverending story.

 

[larrymg1]

larrymg1 said:
Not my secret. Feel free to preview the attached information.

This article, one of many, explains the calculation process very well.
Money Factor on a Lease

Here is the actual money factor calculator:
Calculate The Money Factor on a Lease

The money factor on my lease is 0.0002 or 0.5 interest rate.

What Is Dealer Holdback? on Edmunds.com

Hope this helps
Leasing process explained.

 

[Tonester]

Reposting in the correct thread:

I've always been a "buy with cash (or loan as needed)" kind of guy. I've never considered a lease because I drive low miles per year (around 6K to 8K; work from home) and tend to keep my cars 7-10 years. I've thought that a typical lease was designed to be optimal for drivers around 10-15K miles per year and knowing they will likely turn the car in when the lease ends. In addition to that, I've felt that leases were invented by dealerships wanting to upsell and obfuscate the underlying numbers to show the appearance of a good deal for me (but really a better deal for them). I've felt that the only way to get a fair shake with leases is to study up on the complicated numbers and become as smart as they are, then we'd be on even ground for negotiating. BUT, I've never taken the time to do this. I'd be open to hearing arguments as to why a lease might be better specifically for the new G70 considering the likely depreciation and my low mileage use. It sure would be nice to consider a different car in 3-5 years if it made financial sense.

Option A: Buy the car with cash/loan and know exactly where I am relative to MSRP. Seems like if I wanted to sell in 3 years and buy a new car, I'd likely take a bath in losses due to the possible low value of the G70 at that time; less of a bath if I kept it for 5 years (amortizing the losses).

Option B: Lease the car in the most optimal way and have a decision to make at lease end. Maybe less costly overall this way if I turned the car in versus selling the car and re-buying as in Option A.

Sorry for all the if/then scenarios, but this is what prevents me from leasing as I just don't feel confident in the negotiating seat and whether I'd be money ahead or not at lease expiration! I've heard some good arguments that leasing saves some cash by paying taxes based on depreciation during the lease term. I hate that Uncle Sam gets full value tax cash every time a car changes hands and leasing may reduce this.

I suppose we'll have to wait until we have lease numbers to really discuss this, but wondering if anyone can imagine a lease scenario where I could keep losses below something like $3K if I decided to keep the car at lease end. i.e. Spend $3K and have the option to keep the car at lease termination or turn it in and save X dollars (let them take the risk) because the value ended up dropping like a tank 3 years after release! So which has the most risk for me... paying cash or getting a lease? Yeah... it depends.

 

[ACCHRM]

As someone that has been selling cars for 3 years, lease is always the answer, you have so many options at the end that this alone makes more sense. If you decide to keep the car, just get a loan for your residual value and it will end up costing the same as a purchase. What happens if you or someone around you damages the vehicle during first few years of ownership? Just turn it at the end and you don't care about a bad carfax, on a purchase you get a hit on the value no matter what. A friend bought a 2.0 Cadillac ATS manual black with red leather interior, at the end of the lease, he turned the car in with 6-7 payments remaining and he evened out. Before that, he had a Golf R, leased it for 2 years, sold it at the end to a private party, and made 5k over what he owed to the bank, so he pocketed that money for a down payment on the next car.
Edit: Forgot to mention the best part! LOWER PAYMENTS, and you can keep switching cars every 2-4 years, STILL lower payments than on a purchase, and you get to drive new cars all the time, new technology, etc.

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[Mcc]

you can keep switching cars every 2-4 years

Isn’t it more like you MUST keep leasing because you never have any equity built from your car payments to put toward a loan or purchase? Also you forgot to mention the mileage penalty for overage. So leasing can’t ALWAYS be the answer. Maybe a bit too simplistic?

 

[ACCHRM]

Isn’t it more like you MUST keep leasing because you never have any equity built from your car payments to put toward a loan or purchase? Also you forgot to mention the mileage penalty for overage. So leasing can’t ALWAYS be the answer. Maybe a bit too simplistic?

Mileage is not fixed, you can select the yearly allowed mileage anywhere from 10k to 25k, obviously with the higher mileage the higher the payment. Also of course you can build equity, if the vehicle that you have leased keeps it's value great, you can trade it at the end at what it's actually worth and not what you owe to the bank. I work for Chevy, so our mid-size Colorado is a great vehicle to lease, I have taken people out of lease as much as a year early by just taking the truck as a trade and not a lease-return, and they still at most times have equity in them. But then again, there are many cars that are the other way around, and even at the end you will be negative if you decide to trade or sell, so doing a lease-return is the way to go with a vehicle like that.
The horror stories that everyone has heard are no longer true, and leases are working better for the consumer.

 

[COToad]

Mileage is not fixed, you can select the yearly allowed mileage anywhere from 10k to 25k, obviously with the higher mileage the higher the payment. Also of course you can build equity, if the vehicle that you have leased keeps it's value great, you can trade it at the end at what it's actually worth and not what you owe to the bank. I work for Chevy, so our mid-size Colorado is a great vehicle to lease, I have taken people out of lease as much as a year early by just taking the truck as a trade and not a lease-return, and they still at most times have equity in them. But then again, there are many cars that are the other way around, and even at the end you will be negative if you decide to trade or sell, so doing a lease-return is the way to go with a vehicle like that.
The horror stories that everyone has heard are no longer true, and leases are working better for the consumer.

Most luxury vehicles have residuals that are set up higher than reality to bring the payment down and make sure the vehicle is turned in at the end. Nothing better for the dealership and the manufacturer then to get a vehicle back and resale it as a CPO. I would expect Genesis to do the same if they are really serious about being competitive and helping their new dealership network to thrive.

 

[JapethMarvel]

Leases can be good or bad...
A lot of leases require cash down, let's say $5k USD, which is essentially just money being thrown away, because it's not even being used for the monthly rent of the vehicle.

On the other hand, $5k is a lot less than whatever you'll probably use as the down payment to get the same amount of monthly payments. So it does end up keeping more cash in your pocket. Problem is that once the car would be paid off (around year 5), as long as the car is semi-reliable, you're spending more money then you have to if you were continuously leasing. Even paying $1-2k a year in repairs is way cheaper than 500/month in payments. Leases usually (unless you're leasing a high resale vehicle) end up being slightly more expensive even if you just lease, and then keep the vehicle. Problem is if you do that....3 year lease plus 5 year loan...now you're still making car payments in year 7-8 when you'll probably start getting some heavy maintenance repairs.

 

[twelvetosix]

Leases can be good or bad...
A lot of leases require cash down, let's say $5k USD, which is essentially just money being thrown away, because it's not even being used for the monthly rent of the vehicle.

On the other hand, $5k is a lot less than whatever you'll probably use as the down payment to get the same amount of monthly payments. So it does end up keeping more cash in your pocket. Problem is that once the car would be paid off (around year 5), as long as the car is semi-reliable, you're spending more money then you have to if you were continuously leasing. Even paying $1-2k a year in repairs is way cheaper than 500/month in payments. Leases usually (unless you're leasing a high resale vehicle) end up being slightly more expensive even if you just lease, and then keep the vehicle. Problem is if you do that....3 year lease plus 5 year loan...now you're still making car payments in year 7-8 when you'll probably start getting some heavy maintenance repairs.

No lease really "requires" cash down. Putting cash down just reduces your monthly. It is essentially being used for the monthly rent as your total lease payment is calculated (using residuals, tax, money factor, term, etc.) and then anything you put down reduces that total amount. That total amount is then divided by the number of months.

 

[Beefer]

No lease really "requires" cash down. Putting cash down just reduces your monthly. It is essentially being used for the monthly rent as your total lease payment is calculated (using residuals, tax, money factor, term, etc.) and then anything you put down reduces that total amount. That total amount is then divided by the number of months.

One important thing is...when they ask you whether you are buying or leasing...don't answer. They know that it is harder to calculate leasing for the consumer...so negotiating is harder.

You need to negotiate your final purchase price FIRST. Incentives, bargaining, trade in, etc, etc. Typical wheeling and dealing. Once you have that number...you can than start playing the numbers if it is a lease, etc.

At that point you need to know the money factor (like loan %). Multiply the MF by 2,400...and that gives you the APR. It should be reasonable the same as the rate they give you for financing.

Next...depreciation. What is the cost of the car at the end of the lease. If it is high...it is a better deal for you since the payments are lower. BUT...if you plan on buying the vehicle at the end of the lease...will that high residual be fair compared to other cars on the market in the future? You have to know your stuff. I would never buy at the end of a lease...so the higher the residual the better.

If the residual is low...your payments are higher. But at the end you might get a fantastic deal on the car since it is cheaper compared to other cars in the future (or will it?). The other thing with a lower residual is if you keep your miles super low...you could potentially sell the car for large profit (compared to residual that you will owe)...pocket the profit and return the car paying off the lease.

So...if you understand that...you can do quick math and negotiate more stating that your payment must be in a certain range, etc, etc.

 

[twelvetosix]

One important thing is...when they ask you whether you are buying or leasing...don't answer. They know that it is harder to calculate leasing for the consumer...so negotiating is harder.

You need to negotiate your final purchase price FIRST. Incentives, bargaining, trade in, etc, etc. Typical wheeling and dealing. Once you have that number...you can than start playing the numbers if it is a lease, etc.

At that point you need to know the money factor (like loan %). Multiply the MF by 2,400...and that gives you the APR. It should be reasonable the same as the rate they give you for financing.

Next...depreciation. What is the cost of the car at the end of the lease. If it is high...it is a better deal for you since the payments are lower. BUT...if you plan on buying the vehicle at the end of the lease...will that high residual be fair compared to other cars on the market in the future? You have to know your stuff. I would never buy at the end of a lease...so the higher the residual the better.

If the residual is low...your payments are higher. But at the end you might get a fantastic deal on the car since it is cheaper compared to other cars in the future (or will it?). The other thing with a lower residual is if you keep your miles super low...you could potentially sell the car for large profit (compared to residual that you will owe)...pocket the profit and return the car paying off the lease.

So...if you understand that...you can do quick math and negotiate more stating that your payment must be in a certain range, etc, etc.

Yeah... just get the incentives, residual, and money factor and head over to the leashackr calculator to see how big of a discount you'd need to be where you want. If the discount is realistic start e-mailing dealers.

 

[larrymg1]

head over to the leashackr calculator to see how big of a discount you'd need to be where you want

These sites provide excellent information for leasing:
Calculate The Money Factor on a Lease
Money Factor on a Lease

 

[Mcc]

At that point you need to know the money factor (like loan %). Multiply the MF by 2,400...and that gives you the APR. It should be reasonable the same as the rate they give you for financing.

Be aware that all number they give you (price, residual, etc) appear on the lease EXCEPT money factor. It is up to you to calculate what it is and make sure it agrees with what they tell you. Dealers are often vague about this number and sometimes say they don’t know or it’s around some number. Be wary, it’s hard to calculate this number while you are in front of the dealer, unless you trust the dealer to tell you the truth.

 

[larrymg1]

it’s hard to calculate this number while you are in front of the dealer, unless you trust the dealer to tell you the truth.

Sorry, I disagree. IMO, What is hard about entering 4 definitive factors that are available to you from the dealer as you set in front of them into this calculator?