vector7777

Here's the deal:

3 years / 36K miles
$1500 Down
$1000 off MSRP (Cap Cost)
61% Residual

= $499 / mo.

6MT, Non-Navi '06 TL

What do you guys think? or

ttliang

499x36+1500= 19464 + possible fees for mileage and damages.

let say u buy one with navi and sell it privately at 36month mark with 61% residual.

(33000x6% tax) + (33000x39%) + (33000 loan interest @ 6% with no money down for 36mo) = 16783

it's up to u.

KB1Spec

iTrader: (4)

I put $5000 down for an '06 TL Auto with Navi and my monthly came out to be $425 with tax for 36 month.

Pure Adrenaline

iTrader: (2)

What do you mean by "$1000 off MSRP (Cap Cost)"??

Always negotiate for the best price as if you were buying the car, because the lease payment amount depends on that just as much as buying.

Also pay attention to the lease factor. It's very important.

Overall, sounds a bit too much, but it is a new year model. First one on the block to get it, be ready to pay.... or wait a few months and get it for cheaper.

KilroyR1

To get the interest rate, multiply the lease (or money) factor by 24. It's just another way dealers use the cloud lease payments.

Don

BayshoreAcuraNY

I hope their not using hann finacial..... they'll kill you on the return. Hillside Acura in Bayshore long island gave me 1700 off msrp call and ask for Derek.... I bought two cars from him in 4 months. tell him jay pring told you to call... tell him your my relative or something maybe he'll hook you up...who knows lol

ihernandez19

I put $5000 down for an '06 TL Auto with Navi and my monthly came out to be $425 with tax for 36 month.


im assuming that was a lease right?

Pure Adrenaline

iTrader: (2)

2400, actually.

vector7777

THanks for the insight guys...your responses are confirming my feeling that it was a mediocre deal. I think I may wait a bit. Do you guys think that dealers will be more flexible at year end?

As for the above, I see your point but there is also something to be said about increased cash flow, or lower payments, with a lease. Even if you are paying more in the end....

I appreciate the responses!

slavany

I got 2005 lease 5AT, no NAV in late August for $410 (42mo, 10K, NYC tax included) with Honda Financial. I paid no down but out-of-pocket was $1650, which included bank fee, DMV, first payment, security deposit.

Hope it helps.

BayshoreAcuraNY

waiting might not help... some times when you wait it actually gets worse. every month residuals go down and interest could go up. there is never any really big money back on the tl ( 500 is the most ever and it was this year for one month at the end of the year). The best time to buy a car is when you feel comfortable. also the dealer should take about 1500 off

RBallman

Got my 05 in April at Smithtown L.I. same 42 mo lease 1495 down total 392. a month.
And it's for 12,000 a year. They were pushing 402 until I told him Wantagh was ready to sign for 390. It's a game out there and you have to be willing to play it and you'll save........

johnny--2k

you are close....you messed up one sign....subtract total payments made....

(34980 not including title/license/reg fees) + (20130 residual value @36 months) - (1079.98/mo for 36 months (38879.28 total)) = 16231



Now, in terms of what to do....

In an IDEAL world, buying would be the best option for you. It really depends. Here are some pros and cons...

Buying Pros:
1) after you pay for the car, it's yours....you can do whatever you want with it. Keep it, sell it...whatever!

Buying Cons:
1) Realistically, can you get almost $21,000 for a 3 year old TL with 36,000 + miles, (keep in mind you just finished paying almost 39,000 for it) maybe, assuming a new model is not out, and depreciation is minimal.

2) In the lease, your payments are $499/mo. If you buy, and finance for 36 months, your payment is now almost $1100/mo. Can you afford it?

3) If you finance for a longer term, chances are after 3 years, you will just barely break even, or most likely be upside down anywhere from $2000-5000 depending on how long you finance for ( more info below)

Leasing Pros:
1) You always have a car under factory warranty

2) You NEVER have to worry about negative equity

3) If you like the car after the lease is up, you can keep it and buy it.

4) If you like the car after the lease is up, but want a new one, lease a new one.

5) If you hate the car after the lease is up, you drop it off, and say good bye. No hassle (unless its all beat up and you are over miles)

Leasing Cons:
1) If you drive a lot of miles, your lease payment goes up (still not $1100/mo)

2) If you go over your alloted miles, you have to pay out of pocket

3) If the car is damaged, you pay out of pocket


Assuming you finance longer: (VERY rough numbers used here....financed amount $35,500 with tax and rough title/license/registration fees)

@84 months....payments are ~$518 ($18,600 paid @ 36 months, another 25,000 owed)
@72 months....payments are ~$590 ($21,000 paid @ 36 months, another 21,000 owed)
@66 months....payments are ~$635 ($22,800 paid @ 36 months, another 20,000 owed)
@60 months....payments are ~$690 ($25,000 paid @ 36 months, another 17,000 owed)

As you can see, the shorter you finance, the better off you are, if you can afford the higher payment and the residual value sticks. Even still, your spending more than the lease every month.

So, there you have it.....sort of.

vector7777

The reason I wanted to lease the car was , simply for:

1) the low monthly payments
2) I seem to like swapping cars every 3 years or so

The kink in the leasing plan is that I drive 18,000 miles a year.

So my "scheme" was to lease the car with 12K miles, buy it at the end of the lease (negotiating the price of course) and either sell it myself immediately or keeping it alittle longer if I wanted.

With this I'll have many of the leasing benefits with the only drawback being that I have to dispose of the car myself at the end.

Eyefocus2

I got am 06 TL with Nav for $445 per month. Tax included in payment. Total out of pocket $2800. 10,000 per year for 42 months.

ttliang

appreciate the input very much. however, you missed my 39%. i wasn't using "residual value". in that case. it's a a plus sign.

BayshoreAcuraNY

you cant always negotiate the price of the vehicle at the end of the lease. some manuf. have residual insurance....meaning if you don't pay them it goes to auction...if they dont get it there an insurance company cuts them a check.... why take less from you? also if you take a 12k mile lease with the plan to drive 15k or more then neg with them at the end..... well then they have strenght over you.... they dont budge on price... then you tell them that your gonna turn in the car..... oh but wait.... your over miles.....to bad....thats a hard one to play. dont forget you have to pay tax on your residual so it might not be worth it to buy it..... never go in with that plan because you never know what the future market will be for that car... you could get burned....hard.

johnny--2k

Oh yeah....sorry. I missed that!



If you like to keep swapping cars every 2-3 years, then leasing is your best bet.

ef-tl

This may sound a little smart a**, but why would you put any money down on a lease???

I'm not sure if that is what you mean by "money down", but you should not do it regardless. The only cash you should pay on a lease is the first months payment and security deposit, if required. Oh, and any fees the dealer charges. Any additional money down towards "capitalized cost reduction" is a bad, bad idea.

First, if the car is totaled during your lease term, you will not get any of that money back *and* you will not have any car. The worst case scenario would obviously be just a few months into a lease.

Second, money down for "capitalized cost reduction" is applied to the vehicle selling price, and then the depreciation is calculated. Therefore, with a 61% residual, 61% of you money goes right to helping the lease company buy the car. Why would you do that????????

Example:

35,000 TL with an agreed sale price of 34,000
61% residual equals 20,740 with a total of 13,260 in depreciation (plus interest and tax) to be paid by you

Now, with 1500 down:

35,000 TL with an agreed sale price of 34,000
minus 1500 "down" = 32,500
61% residual equals 19825 with a total of 12,675 in depreciation (plus interest and tax) to be paid by you.

So, you paid an extra $1500 to save $585 over the term of the lease.

vector7777

Never new about this.... I've know plenty of people to put money down (for cap cost reduction) for leases...but given what you've stated below, it definitely does not make sense to do so. I guess it is important to distinguish between fees and 1st payment made up front and actually putting money down. I am not sure what the dealer had in mind.

I appreciate the feedback. I'm learning lots!

BayshoreAcuraNY

you are incorrect... the residual is based off msrp not the sale price of the vehicle....... a cap cost just pays some of the lease up front to lower your payments.....

BayshoreAcuraNY

here's a quick easy way to understand how a lease works.....


msrp 20000
residual 50%= 10000
term...months
interest.... %
sale price 19000

borrow 9000 over the term.. 36 for example

250 per month in dep. then add interest ( well call it 50 a month)= 300
300 x 36= 10800.... an 1800 cap cost reduction would make your payment 250...
same 50% residual off msrp.... each bank sets the res for each car for each month
example 36 50% then 39 48% then 42 45%.... if two months have same resid. then the second month (36 or 39) then the second month will be better(39). hope that helps