G70 Lease Comparisons and Discussion (USA)

[Tonester]

see how big of a discount you'd need to be where you want. If the discount is realistic start e-mailing dealers.

Can you please elaborate on this technique? I can go to leashackr and use the calc, but not sure about your statement "see how big of a discount you'd need"??

 

[Beefer]

Can you please elaborate on this technique? I can go to leashackr and use the calc, but not sure about your statement "see how big of a discount you'd need"??

Probably to get to your desired/optimal monthly payment.

 

[twelvetosix]

Probably to get to your desired/optimal monthly payment.

Right. Put in MSRP and all other info you know, which should at minimum be residual and money factor (preferably you'd know of any incentives also). Adjust the selling price field until your monthly is where you want it. Underneath the selling price field you'll see "% off MSRP".

 

[Tonester]

Right. Put in MSRP and all other info you know, which should at minimum be residual and money factor (preferably you'd know of any incentives also). Adjust the selling price field until your monthly is where you want it. Underneath the selling price field you'll see "% off MSRP".

I get it now, but I don't think in terms of monthly payments. I think in terms of "what is the best overall deal" considering the time value of money and such. I can either buy the car with cash or get a loan or lease. The deciding factor will be, what's the best deal? I can invest my cash and get a typical 4% return with a conservative investment, but if the loan is only 3%, then maybe that's the better deal.

I like what you said @Beefer in that I can negotiate my best price first, then and only then would I consider the lease/loan/cash decision. i.e. don't muddy the negotiation with lease talk, save that for later. That helps!

 

[Mcc]

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?
View attachment 15609

Sorry to disagree. I dislike doing that while sitting in front of the finance guy at a dealership. Maybe easy for you but I prefer not to. Have others tried this at the dealership at closing when lots of new numbers all of a sudden pop up? Easier than financing when you see the APR written right on the contract?

 

[Mcc]

think in terms of "what is the best overall deal" considering the time value of money and such.

True in theory but only if in fact you DO invest the difference as opposed to just considering it extra discretionary income. It takes a lot of discipline to save it when nothing is forcing you to.

 

[larrymg1]

Sorry to disagree. I dislike doing that while sitting in front of the finance guy at a dealership. Maybe easy for you but I prefer not to. Have others tried this at the dealership at closing when lots of new numbers all of a sudden pop up? Easier than financing when you see the APR written right on the contract?

To each his own. I personally have no problem doing anything in front of anybody who is trying to get some of my money. If a dealer employee has a problem with me checking the numbers it is time to get up and walk, no, run the hell out of there.

 

[Tonester]

True in theory but only if in fact you DO invest the difference as opposed to just considering it extra discretionary income. It takes a lot of discipline to save it when nothing is forcing you to.

Well, that is pretty much outside of this conversation whether someone has discipline or not, right? In my case, the funds are already invested and getting around 4% return, so the question is whether to liquidate that investment and pay cash for the car or get a lower % loan (~3 or less%), or get a lease.

As stated before, I've never done a lease, so trying to educate myself here with the pros and cons of leasing; trying to keep an open mind...

 

[Mcc]

To each his own. I personally have no problem doing anything in front of anybody who is trying to get some of my money. If a dealer employee has a problem with me checking the numbers it is time to get up and walk, no, run the hell out of there.

Actually I agree and I usually bring my computer with me to the dealer. I just question how many folks would and are comfortable running numbers while lots of numbers are being thrown around. And then bippity bobbity boo here your monthly payment. It’s been my experience that my numbers are never the same as theirs and then you have to have the presence of mind to go over everything line by line.

 

[larrymg1]

It’s been my experience that my numbers are never the same as theirs and then you have to have the presence of mind to go over everything line by line.

I can appreciate your personal discomfort. However, Of all times that I personally would want to take a position of due diligence and the presence of mind to go over everything line by line, it would, especially if red flags were being raised.

______________________________

Help support this site so it can continue supporting you!

 

[danygenesis]

I've been leasing cars for a long time and is just like everything in life, you learn to master it with time.
I always do my homework first. I search the MSRP, the Residual Value, the Money Factor and manufacturer/dealer incentives or bonus cash of the specific car. You need to know how much is the Destination charge and the Adquisition fee. I pull up my Credit Score just a couple of days before. After you have all those numbers you can use any lease calculator to know the monthly payment. Then I go to any dealer I like. When I get to the dealer I request the dealer fees which is the last number of the equation. I never tell them that I'm going to lease or buy. I just go to the lot and test drive the car I like then I sart haggling the Selling price, when I feel that the price is right I tell the sales person that I want to lease. He will go to the sales manager and will ALWAYS come back with a ridiculous monthly payment. That's when with all the numbers I mentioned before and using any lease calculator (the last I'm using is an app named Car Finance BOOS) write my numbers and give them to him telling to show them to the Sales Manager. There is not one time that the Sales Manager wouldn't come to my table to talk to me after receiving my numbers explained, NOT ONE. After that the only thing you need to do is signing the contract with the Finance guy rejecting all the warranties, protection,maintenance and other sh..t plans he always offer.
9 out of 10 times I got out of the dealer with the car I want at the price I planned.

 

[Mcc]

the last I'm using is an app named Car Finance BOOS

Do you have a link for that app. I didn’t find it.
Thanks

 

[danygenesis]

Do you have a link for that app. I didn’t find it.
Thanks

Lol I have it installed for some time but looking for the link I realized it was elimanted from Google Play. Anyway here you have it web-based.
Car Finance BOSS

 

[Toddasaurus]

Am I the only one who thinks that buying can be less expensive overall, by paying things off early (ie no more than 1 year of payments) and avoiding the majority of the interest? Maybe I'm living in the past.

I've got a good chunk of money saved to pay things off very early.

Also, I'm comfortable selling cars privately in case trade-ins don't live up to what they should be (which they never do, let's be honest).

Lastly, I suppose it matters that I'm gonna be doing a lot of work on my next car, which probably wouldnt be okay for the lease terms.

I just don't like having unnecessary payments. I also feel like leasing kind of loses the ownership experience of having a car, and you kind of care less about it and lose interest faster.

These are just ideas I've wondered about. Not statements of fact. Let me know what you guys think.

 

[larrymg1]

Do you have a link for that app. I didn’t find it.
Thanks

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

 

[Electrode]

Of course you're living in the past, Todd. You're a dinosaur, right?

 

[EdP]

Am I the only one who thinks that buying can be less expensive overall, by paying things off early (ie no more than 1 year of payments) and avoiding the majority of the interest? Maybe I'm living in the past.

I've got a good chunk of money saved to pay things off very early.

I take more than a year, but I've never made a payment without considerably more than minimum. At less than 1% interest I'm not as rushed.

Many years ago I was not as smart. I remember a week before payday thinking, it would be nice to have another $30 or $40 to get us through to payday. Later that day the credit card bill came in the mail and the interest for the month was about the same as the $40 I was wishing I had. That did it. I vowed to get rid of all debt, especially credit card. For my mortgage, I had a spreadsheet where you entered the mortgage info and if you paid extra, would tell you how much interest you saved. It was a good incentive to pay more each month. Saved a bundle.

 

[Tonester]

Am I the only one who thinks that buying can be less expensive overall, by paying things off early (ie no more than 1 year of payments) and avoiding the majority of the interest? Maybe I'm living in the past.

I've got a good chunk of money saved to pay things off very early.

Also, I'm comfortable selling cars privately in case trade-ins don't live up to what they should be (which they never do, let's be honest).

Lastly, I suppose it matters that I'm gonna be doing a lot of work on my next car, which probably wouldnt be okay for the lease terms.

I just don't like having unnecessary payments. I also feel like leasing kind of loses the ownership experience of having a car, and you kind of care less about it and lose interest faster.

These are just ideas I've wondered about. Not statements of fact. Let me know what you guys think.

I'm with you @Toddasaurus ! I feel the same, but wanted to hear from all of the lease fans that have been discussing leases for many weeks in the other thread. So far, I'm not convinced that leasing is any better than buying in almost any scenario!

This is what Dave Ramsey says about car leasing:

(note Dave's comment that when a car company sets the residual value at the end of the lease, they are not stupid!)

I'm still willing to crunch some numbers when it's time, but so far I'm still leaning toward a buy. Like you, I don't mind selling my used car as a private party. That benefit alone can save thousands over a trade-in. To me, leasing makes it easy to turn the car in and is similar to doing a trade-in, but you pay for that privilege in the lease payments.

 

[danygenesis]

The reason why I lease? Because i can't stand a car for more than three years. I always want to have the last technology on the car I drive. I can't imagine driving today something w/o rearview camera, automatic brake with pedestrian detection, smart cruise control, lane keep assistance, etc.

 

[Tonester]

The reason why I lease? Because i can't stand a car for more than three years. I always want to have the last technology on the car I drive. I can't imagine driving today something w/o rearview camera, automatic brake with pedestrian detection, smart cruise control, lane keep assistance, etc.

I hear you there and feel your excitement! But have you ever looked into buying your car with a loan and payment of whatever fits your budget, then at the 3-year mark, put it up for sale and sell it yourself while at the same time negotiating your next deal? With the proceeds, payoff your loan (assuming it still has a balance). I'd be curious how much you'd save doing this over the lease method. Yeah, it's more work, but the payoff could be big in comparison! Easier than this would be to buy your next car first, then sell the old car, but this takes more resources and garage space of course...