ac08odl

i put nothne down on my car and i pay 500 a month... get a type s cause after you get your tl you going to want a type s

The Starbuck

I am assuming 10k mile a year lease?

The Starbuck

Where is the dude that said you shouldn't put any money down on a lease and if you did, you shouldn't even be leasing a car?? Still don't see how that is all true.

pres586

My lease =

February 2008

08 TL Base 5AT Non-Nav

15,000 miles / year

36 months

MSRP = 34440

Selling price = 31500 (no 2000 rebate since leased)

Residual = 54% of MSRP = 18597

Acquisition Fee = 595

Titling and Licensing = 205

Net cap cost =31500 + 595 + 205 = 32300

Depreciation Fee = (32300 - 18597) = 13703

Depreciation Fee per month = 13703 / 36 = 380.64

Finance Fee = (32300 + 18597) * (0.00045) = 22.90

380.64 + 22.90 = 403.54

Tax 9% where I am paid on that value

403.54 * 1.09 = 439.86

I made them make it come out to 440 a month.

I put nothing down, only had to make the first payment.

My advice is know your formulas and numbers... less room for them to screw you over :P

The Starbuck

pres586....

Ok help me out here...I am running the numbers according to what you have using my figures. I also have the Leasescan for Windows they call it in front of me. It's the paper they printed out for me that breaks everything down. Can you run the numbers and show me what you get?

Here is what I got.....

MSRP: 36490.00

Selling Price: 33498.00

Bank Fee: 595.00

License/Title Fee: 75.00

Tax is 6.00% in Kentucky

One note....they have the Residual at 53%...and I used that in my numbers as well.

If I run everything according to what you have my payment with 0 down should be $430.00. Which makes sense as my tax is lower than yours, but I also got the Navi as well which makes it about even. Let me know what you get.....also here are some more numbers I had.

My total buying price with bank fees and title was: 34168.00

So I then took 36940 (MSRP) * .53 (Residual at 53%) = 19578.20

Next I did the depreciation fee: 34168.00 (Price of actual car paid with fees) - 19578.20 to give me = 14589.80

Depreciation per month: 14589.80 / 36 = 405.27 a month

Tax at 6%: 405.27 * .06 = 24.31

My estimated monthly payment with 0 down is: 429.59!!

Now here is the trick on this sheet they game me....they have 11734.56 Total Depreciation / 36 = 325.96 as their monthly depreciation??

Then they have this number...not sure how they got it... 51.40 + 50,890.96 * 0.001010 = 377.36 Base Monthly Payment.

Now my tax is 6% so 377.36 * .06 = 22.64 for a monthly payment of 400 a month.

Now their 400 a month payment with taxes is with 2780.24 down in cash with first months payment, plus title fee of 75.00, then tax again on the 2780.24 to total 166.81 in taxes for a grand total of 3422.05 due at signing to drive the car off at 400 a month.

Doesn't that look fishy??? What is that in bold up there they have on this sheet??? Any help is much appreciated fellow TL!!

The Starbuck

One other thing pres586 is you did not calculate the interest rate as well on the car.....

2008 Acura TL

You run the risk of losing all of your down payment on a lease should anything happen to your car. Like if it's stolen and never recovered or should it ever be in a accident and be totaled.

I've been leasing for 16 years and have never put down one penny on a lease, except first payment and DMV fees. Everything else is rolled into the lease payment. My 3rd lease was in an accident and the insurance company totaled it. If I had put down say $3500, all of that money would have been lost.

jonmac56

I think I may being getting robbed right now... I had a 06 tl w nav 12 months left payoff 24500. Acura bought that out and offerred me a 08 TL type s w nav for 0 total out of pocket and $550 a month... also 13k miles a year...

Is this a fair price since I had nothing out of pocket and ended my other lease a year early? They are also giving me roof wind blocker, mud rings, trunk tray... Please help me out I am suppossed to get car tommorow... price lease based on says would be 36,400 for car... Appreciate any help thanks!

pres586

Okay, in a lease there are three fees to consider:

1. Depreciation Fee
2. Finance Fee
3. Taxes

You start with the base cap cost in a lease, or the negotiated selling price.

In your case, the selling price is 33498.

Add in any additional fees.

33498 + 595 + 75 = 34168

You are putting no money down.

Thus, your net cap cost is 34168.

Residual is 53% of MSRP, or 36940 x 0.53 = 19578

Depreciation = 34168 - 19578 = 14590

Monthly depreciation fee = depreciation / term = 14590 / 36 = 405.28 / month

You indicated that I did not calculate interest rate on the car. Leases do not use interest rates. They use money factors to calculate finance fee.

Money Factor x 2400 = Equivalent interest rate

Money factor is contingent upon your credit and the current offerings provided by the manufacturer. In my case, it was 0.00045. In your case, judging from your message, it appears to be 0.00101.

0.00045 x 2400 = 1.08%
0.00101 x 2400 = 2.424%

To calculate the monthly finance fee...

Finance fee = (net cap cost + residual) x (money factor)
Finance fee = (34168 + 19578) x (0.00101)
Finance fee = (53746) x (0.00101) = 54.28

So now you have...

Base payment of 405.28 per month
Finance fee of 54.28 per month

405.28 + 54.28 = 459.56 per month

In my state (Louisiana), tax is paid on this value, in addition to tax applied to the money you put down to lower the net cap cost, but in this case it's zero so you don't have to worry about that.

You said your tax rate is 6%.

459.56 x 0.06 = 27.57

459.56 + 27.57 = 487.13 per month... your number was 429.59 without any finance charges.

Now let's look at your dealer's numbers...

So let's say they sold it to you for 33498

Base cap cost = 33498
Fees = 595 + 75
Down payment = 2780.24
Net cap cost = 33498 + 595 + 75 - 2780.24 = 31387.76
Residual = 36940 x 0.53 = 19578.20

Depreciation = 31387.76 - 19578.20 = 11809.56
Monthly depreciation = 11809.56 / 36 = 328.04 per month

Finance fee = (31387.76 + 19578.20) * (0.00101) = (50965.96) * (0.00101) = 51.48 per month

It appears not to be 51.40 + 50890.96*0.00101 = 377.36, but rather, 51.40 is equal to 50890.96 times 0.00101.

Anyway, 328.04 + 51.48 = 379.52 (close to the 377.36)

Tax rate 6%... 379.52 x 0.06 = 22.77

379.52 + 22.77 = 402.29 per month, close to the 400 a month.

You also must pay taxes on the amount you put down, so

2780.24 x 0.06 = 166.81, same number you got, which since it's not included in the lease calculation, you must put it down.

So 2780.24 + 166.81 + 402.29 (first month payment) = 3349.34 due at signing

Your number was 3422.05 due at signing

3422.05 - 3349.34 = 72.71

72.71 / 36 = 2.02, which might explain the two dollar difference in our payment calculations.

They're not screwing you, in other words.

I'd check Edmunds forums to make sure that they're giving you the best money factor (interest rate), however. Mine was lower in February, although I don't know what your credit is like. I wouldn't put anything down. Plus, put the money you don't put down in a high yield savings account or something :P

I hope all this math makes sense.

Just don't ask me to interpret poetry, please.

jonmac56

Ok i talked them down to 36k even

13k miles a year

0 total out of pocket

$550 a month

08 TL Type S

put in moon roof visor, mud rings, trunk tray


was this a fair deal?

Simba91102

Leasing 101 baby!!

007TL-S

Lease!....Common Sense must be out the window!

sensualscorpion15

i am leasing a 2008 tl type-s.........i picked it up in oct and i traded in my mint 2002 infiniti black w/spoiler and fully loaded i35..................they gave me $8,500 for my trade and my 3 year lease payments are $379.83 a month which is great!!!!......i love my new car and with all that it has i got an amazing deal....................there is every possibel option in it..............rear view back-up camera,voice activated touch scree navigation,bluetooth phone,heated seats,all inside lights up in red!!! its black outside with black and ivory interior.................i would highly reccommend it to anyone!!!!

sensualscorpion15

you got robbed!!!!!!!!!!!!!

jonmac56

How so? I pay have but dont compare my payment to yours.. you got 8,500 for trade in... I had nothing to trade in and paid 0 to take car... the question is 8,500 down worth $170 less a month..

The Starbuck

Still waiting for the answer and how you guys think putting money down on a lease is not a wise choice. Keep in mind I am not trading anything in as well.

TypeSDragon

You have to do the calculation if putting down money is worth it or not. If it lowers you payments, then yes put some money down. But remember when you put money down, you will never get that money back. For example, maybe a year into your lease, you find yourself needing to get out of it. Let's say, you got another person to take over your lease, but the money you put down will never crawl back to you. So it really depends if you want to keep the car or not or if you want to buy it out after the lease. Personally, I don't like leasing since you are really "renting" the car and are restricted to the amount of miles you can put on a year. I rather take a low finance interest rate and know that I will be OWN the car after four years.

The Starbuck

True you may not see the down payment back, but the same can be said when you actually buy the car. In fact if you put a down payment on the car for a lease, that is all factored in when the lease is up and the option to buy the car outright.

The Starbuck

Really it's the same if you pay 500 a month with 0 down than it is if you put 2500 down and pay 400 a month. If you do the math, it's all comes out to the same number no matter what you do.

lafan313

Exactly. I initially negotiated a monthly payment with $2000 down. My dealer was willing to work with anything I wanted to put down after that. It was simply a matter of dividing the difference in down payment between the life of the lease. So I ended up putting $1000 down and increasing my monthly payments by around $27 ($1000/36).

Rodney

just picked mine up tonight


469 a month
12k a year
24 month lease!!!!!!!!!!
tax and tags and first month at signing came to 2800

topgun04

"Still waiting for the answer and how you guys think putting money down on a lease is not a wise choice. Keep in mind I am not trading anything in as well."


I thought the answer was already posted by someone earlier in the thread. Most financial arm of the manufacturer (e.g. Acura financial) provide a gap insurance as part of the lease. What that mean is that if you are in an accident and total the car, you can just hand the check you received from the insurance settlement to Acura Financial and you are free and clear from the lease (and totaling the car). It doesn't matter if you are upsiding down by 2000 or 4000 dollars (similar situation as you buy a new cars and trade in soon after you buy it. you will be upside down pretty badly). By putting large amount of down payment, you can still hand Acura financial your settlement check from the insurance company. But you obligation for terminating the lease and paying for the car (since you total it) was reduced by your downpayment. So you out of pocket cost for totaling the car is higher. I do disagree with the claim that you will automatically loss ALL the downpayment. If your downpayment + insurance check is 2000 over the cost of terminating the lease + paying for the car, Acura will refund the excess.