jotty sansotta

Recently (8.18.07) I purchased my brand new 2007 Acura TL. I thought I got a good price but, without actually giving the lease a detailed walkthrough, I think I was taken for a ride. The dealer kept insisting I was getting the best deal possible...I think not. This was my first time buying a car (22)...I think I got way too caught up in the excitement.

I have a 48 month lease. My payment is $526.11/month. At the end of the lease I will have paid $26,227.17.

Here is where things get complicated. The agreed upon value of the vehicle is $29,990.00. I have the option to purchase the car at the end of my lease for

$16,461.60


Which would bring the total price of my car to $42,688.77


What did I get myself into? I would appreciate any insight/suggestions/experiences!

Thanks Guys.

erick3

type s? that's about right for a type s...
if not uh...good luck?
my brother's paying uh...500 a month for gs 350...2007.............
...yeah really i have no idea! good luck man...

blazinginder

^ Agreed...if it's not a type-S then you may just have been taken

EDIT: Seeing as how you said they valued the car at $30k I'm thinking this is on an 07 TL normal with/out navi not a type-S


In which case the dealer took you to the cleaners

jotty sansotta

It's not a Type-S...

PhilN

I bought an 07 TL w/Nav back in June and I pay 520/mo including tax on a 36 month, 15,000 miles per year and that was with just first month's payment out of pocket at signing. It's probably not the best deal, but at least a good one. I think that dealer really got you. Well....you live and learn....I know you won't let that happen the next time around.

nfnsquared

You only put $974 down?

jotty sansotta

$1500 up front. Including first months payment title and taxes

jazz_123

You paying high ass monthly payment because you leasing it for four years. Why would you do such a thing. They charge you more because the longer you lease it, it loses money for the dealer.

nfnsquared

Well, without knowing exact type of car (w/ or w/o navi) and the resultant MSRP, the local sales tax rate, the residual value (assume it was $16XXX, the agreed upon end lease purchase price), it's difficult to know, but it looks like they took you for a money factor equivalent to 10% interest rate.

You can plug your numbers in here to find out.

Best deal about this whole thing is you're young and you probably won't let it happen again. My advice is to learn, relax, and enjoy the car. They're fantastic and you'll enjoy the next 4 years!

I used a MSRP of $33625, cap cost of $29990, $522 down, cap cost reduction of $974, and a local sales tax rate of 8% to come up with an interest rate of 10%

jotty sansotta

Thanks for your help. What do you suggest I do at the end of my lease?

nfnsquared

Well, that's tough one. If you really like the car after 4 years, the plus side of buying it is you know everything about it.

One the other hand, I think most people on this board purchased non-navi 2007 TLs for $33K out the door. Financed with zero down over 60 months at 5% interest would be a total payment of $37363, so you'd wind up paying $5000 more for the car than had you bought it via a conventional loan.

Knowing that, you may decide to start over after 4 years. Again, my figure may not be exact because I don't know all the details.

steve9207

That was a great explanation that nfnsquared provided. I was also going to mention (if you're feeling down about the deal), that when you look at the big picture and add those numbers up, it's close to what you would have paid would you have financed it over 5 years (at 10% like nfnsquared mentioned). So, while you may or may not have been able to get a better interest rate than 10%, it's not terrible.

I agree, enjoy the car now. What's done is done, ya know? I don't know what the fees / penalties are for breaking the lease, but I'm guessing it won't be very adventageous to consider. When it comes time to buy it, check out the Fair Market Value compared to the buyout price & see if it's worth purchasing, and how you feel (you may be ready for a new car by then).

jotty sansotta

MSRP: 34,2495
Due at signing: $1500
Gross Capitalized Cost: $31,142.05
Base: $29,900
Rent Charge: $10,801.44

ChrisQ1980

How much would it have cost to just buy it with a 60 month finance? To me that's a lot better. 5 years and you OWN the car. If you lease it for 4 years, and then finance the remaining for 60 months that a 9 year payment, even if you do it for 3 years it's a 7yr payment.

Personally I would try to get out of the car A.S.A.P This is why I ONLY buy my cars.

lusid

I always take someone with me when I make a big purchase. Makes things less confusing and you can at least discuss things like this.

GL

jotty sansotta

I think I am going to end up paying the rest of the car off. I cannot afford to get myself in another situation like this.

pokin

Sorry, this is not a good deal for a lease (payments too high) - not at all. IMO, most dealers will gladly let go of the 07TL right now for roughly the same monthly payment for 60mos - full purchase. Also, you did not mention any hidden costs - such as, mileage penalty, which may significantly increase its total cost.

At lease end, you may be faced with bad vs. bad - i.e., the $16,500 purchase option may be higher that the value of the car. On the other hand, the $25,000 or so in payments over 4 years would be a painful amount to simply walk away from.

Nonetheless, it is a done deal and you might as well enjoy it.

jotty sansotta

Is there any chance I would be able to refinance this car? Any legal action I can take?

AcuraJ32A

jotty u may not have got a type-s out of the deal but these hella nice cars i mean even my 2G is amazing. now granted i have always thought lease's were bs i just think of tehm as a expseive long term rent-a-car lol. but they are right your young so live, learn and move on. it happends to a lot of peeps but atleast u got a nice car out of it. idk if i would buy it after the lease though

kefler

I doubt it will be that low in 4 years. My 2004 TL is almost done with its 4 year lease, residual is 17040, and the KBB and Edmunds TMV put it at 21 tradein / 23-24 private sale, conservatively.

stillhere153

iTrader: (1)

I was under the impression that when you lease a car you do I dunno 36 months and 12k miles a year, then lets say the ticket is ~$30k... you pay ~$15k during those 36 months... then there is only ~$15k more to pay plus the taxes on half the car

no idea how you leased a car for 4 months.... bbb.com

jotty sansotta

I leased the car for 48 months.

jotty sansotta

One more question, is there any chance I could go to the dealer and have my lease changed?

jazz_123

Hello to the No. Once you sign papers its done!

jazz_123

I say you wait for the dealer to finish work and show him whats up!

stillhere153

iTrader: (1)

bro you know I ment 48*

jazz_123

You know you can return the car to them! But they will only offer you the price of a used TL the market value so around maybe $25K. Hey you lose some money but better than getting ripped off right now. And then with that trade in value get a 08 TL type S with the monthly payments you making on the base TL! Maybe well see a grin on your face!

jotty sansotta

I will evaluate my options and let you guys no what happens after I make a visit to the dealership this weekend. Hopefully I don't embarrass myself.

Anyone else have any experience ending their lease short?

jazz_123

You mean STEALership!

jotty sansotta

Word. I just need the manager to see my lease and admit to me I got taken so I can have some closure.

jazz_123

Yo did you get a 15K or 18K mileage limit?

jotty sansotta

12k/year...

jazz_123

Honestly thats sad. I mean your young the salesman took you as fresh meat. I mean did you want the 48 months or did he recommend it. The reason the monthly payments are so high is bc you did 48 months. I mean shit the salesman should of at least told you 36 would of been a better choice. Just enjoy your car like everyone said and research before you get a car next time. Stealerships are scam artists!

jotty sansotta

Everything was so new to me. All he kept saying was "we're going to get you the best deal possible, I know this is your first time but trust me." So I did. I just don't understand how somebody could actually do this to a person.

jazz_123

He aint your friend all he sees is money signs and commission when he sees customers. You can let him have the upperhand and let him have control. You got to come in with all your facts and research. And never buy a car on the weekends. Always go at the end of the month or on a rainy day. I think Friday is the best time to go couple hours before they going to close.

McKulit

Amen to this.

Look Jotty, I too have been victimized when I bought my first car.... that was many many moons ago. I was really upset when I got home and people kept telling me I've been taken for a ride (no pun intended). You know what I did? From that day on I vowed I would do my research and never to be taken like that again.

Go on a rainy Friday or Monday when there's less people looking for cars. Or better yet at the end of the month when every salesman wants to meet their quotas. Browse around with a stern face that means business.

Have a "fair" set amount on your head before coming in and do not budge until you get this number.

Normally if I see an ad that says "National Lease" program on a car that says $299 a month with $1999 down. That's what I aim for.

I'll only take $1999 check with me and would only accept $299 - $320 a month for the lease. You have to give a little room for tax. It has always worked for me and I've always been happy with my lease (and other buys too).

Remember that the lease amount goes up and down too depending on the accessories that they jack you on. If they say I'll throw in a mat ... that's not free. If they say I'll throw in the convenience package (trunk tray, wheel locks) they are not free. They will add up to your costs.

One time I was trying to lease a Honda Accord and it was the color I like. Unfortunately this is the only one they had on the lot with all the accessories plugged into it. The salesman added the cost to my lease and I said hell no. If you want take off all those accessories so I can leave tonight with the vehicle. I don't need those extra stuff I said. To make the long story short I took the car home with all the accessories and kept the set price I had on my head before coming in.

Bargain hard. Salesmen are not your friend. They are out there to make money on you. That's their job. They have a lot of incentives where they can make their money so always do your homework. For example if it's the last car he needs to sell that month to make quota he'll let it go for cheap coz he knows that's when he makes that magic quota and he'll get bonus money from the dealership anyway.

Buying on the other hand is a whole different ball game but I've been there too and I know how to make the salesman sweat it off and take my offer. That's for another thread.

joerockt

Good luck with that...

You also need to realize that interest rates are involved with leases as well (called the money factor, to confuse you). I'd be curious to know what your money factor was. Because you're young, and dont have long term established credit, this might be a bit higher then normal...

bjtexer

x 2

joerockt

Wow...Just wow...

LyfeIs

If it were me, this is what i would do. I would keep the car for 1.5 to 2 years and then try to sell it on AutoTrader. the way i see it is that by then you would have brought the value of that car well below BB value and will probably make money from selling it.