Lease rate check
03-11-2011, 02:28 PM
#1
A-SPEC
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Location: NYC
Age: 41
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Lease rate check
I'm not a knowledgeble lease guy. never leased a car before..
maybe be one of you can help.
2011 TL TECH AWD
15,000 miles / year for 36 months
$550 / month includes taxes
no down includes first month pay.
what do you guys think?
maybe be one of you can help.
2011 TL TECH AWD
15,000 miles / year for 36 months
$550 / month includes taxes
no down includes first month pay.
what do you guys think?
03-11-2011, 03:27 PM
#2
Trolling Canuckistan
It would be more helpful for us to know the before tax payment. The taxes have nothing to do with the lease, they have to do with the state you register in. I would say it seems like a good deal. IIRC, the ad lease is 0/0/0/0 and 349/mn (before taxes) which is a base FWD TL 36x10K miles per year. To go up 200/mn (including the taxes) to get 5000 more miles per year on a car that is roughly $8000 more expensive seems about right.
03-11-2011, 06:09 PM
#3
Autofahrer
I bought my 2011 TL SH-ADW w/ Tech for ~$590 a month with $5k down. Doesn't buying make more sense, since it is such a small price-difference?
03-11-2011, 09:18 PM
#4
Cruisin'
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Bad deal..you can buy the car at 60 months for very close to that price.
03-11-2011, 11:52 PM
#5
Suzuka Master
Might as well go to Budget or Alamo and rent a car, leases are pretty much the same.. paying to drive the car. Dealers and car companies love it when people lease, it's a win-win for them.
03-12-2011, 09:14 AM
#6
Three Wheelin'
Leasing is an advantage if you use the car for business (tax write-off), want to drive a new car every 3-4 years or want a nicer car and can't afford to buy it. If you are going to lease, remember that you can negotiate the sale price of the vehicle just as if you were buying it. You can also lower the cost by taking lesser miles if you don't think you will use the 15k. You may want to compare lease/purchase figures to see just how much the difference is. That being said and if you still decide to lease, I think you can do better than the deal you posted. Check prices in your area on www.truecar.com, get dealers in your area working against each other and let us know what you decide. Either way you're getting one fine car!
03-13-2011, 12:46 AM
#7
8th Gear
Join Date: Mar 2011
Location: Queens, New York
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look like the is is not bad deal .. i just got my at
2011 TL TECH AWD
10,000 miles / year for 36 months
$550 / month
no down includes first month pay.
which dealer offer this great deal...??
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03-13-2011, 10:19 AM
#8
US Navy Seabees
Leasing is a bad idea. If you can't afford to buy (or borrow) the car don't get it.
03-13-2011, 11:49 AM
#9
Bad deal! I was planning to get a TSX but they're pushing the TL bc the leases are actually slightly cheaper! 36/15000 $340 for base TL and $399 for Tech. Not sure what the numbers were for SH-AWD. I think they wanted $575 down. TSX prices were $10-20 higher for comparable packages. I'm still not sure which I'm going to wind up with.
03-13-2011, 12:13 PM
#10
Suzuka Master
Dealers love it when people lease.. it's like free $$ for them. Buying a new car is bad enough as far as smart money goes but leasing is the worst thing.
From Dave ramsey, the Money Man:
From Dave ramsey, the Money Man:
Kiplinger’s Personal Finance Magazine says that a new car will lose 60% of its value in the first four years. Well, that doesn’t work. Turning $30,000 into $11,000 is not a good plan. So financially speaking, and common sense agrees, if you’ll pay cash to buy a two-year-old car with very low miles in near perfect condition, you will let someone else take the bulk of the value loss. That is what the typical millionaire does. Very few millionaires lease cars – or as we call it, fleecing a car – because it is the worst deal on the car lot. Consumer Reports, Consumer Federation of America and Smart Money Magazine have all done articles on the “fleece” and the fact that it’s a rip-off. It is good only for the dealership. It is a high rate of interest; of course the interest rate is never disclosed.
03-14-2011, 06:15 AM
#12
Suzuka Master
The other critical factor beside negotiated sale price is what is the money factor on the lease. This is usually represented as a decimal number such as .00275 you then take that number and multiple it by 2400 to get the APR interest rate for the lease. Leases usually carry higher APR thena purchase. And then finally you want to know the residual value of the car at the end of the lease. My simple rule is don't ever buy at the end of the lease you lose all around; you typically pay a higher APR on the lease then you are financing a "used car" at the end of the lease which will carry a higher APR. IMO if you want to buy the car, buy it up front and if you can't afford it buy something else. If you plan on turning the car in then a high residual value at the end means you lease payments are lower since you "used" less of the value of the car. As others have said leasing is usually good for those that write it off or those that plan on frequently flipping.
03-14-2011, 05:51 PM
#13
Instructor
@Stew4HD: I'll admit that leasing doesn't make sense for everyone, but for some, it does. The quote you posted from Dave Ramsey has more to do with buying used vs buying new. His statement about "fleecing" a car isn't fair. Most people who poopoo leases just don't understand them and are easily taken advantage of by unscrupulous dealership finance managers.
In my case, I like new cars. If I didn't have an addiction to the odor of volatile organic compounds (aka new car smell), then I would most likely buy used as Ramsey suggests. In my 30+ years of driving, I've never held onto a car for more than 4 years, and they were all new when I acquired them. Leasing makes perfect sense for me. Why should I take out a loan to own the car if I don't intend to keep it? With a lease, you know exactly what the depreciation amount will be. With a loan, you take a gamble and usually get low-balled with the trade-in value. It's even worse if you're upside down on the loan payoff amount.
In my case, I like new cars. If I didn't have an addiction to the odor of volatile organic compounds (aka new car smell), then I would most likely buy used as Ramsey suggests. In my 30+ years of driving, I've never held onto a car for more than 4 years, and they were all new when I acquired them. Leasing makes perfect sense for me. Why should I take out a loan to own the car if I don't intend to keep it? With a lease, you know exactly what the depreciation amount will be. With a loan, you take a gamble and usually get low-balled with the trade-in value. It's even worse if you're upside down on the loan payoff amount.
03-14-2011, 06:07 PM
#14
Instructor
Right now, the money factor on a 36 month lease for a 2011 Base TL, 12K miles, is 0.00116. That translates to an APR of 2.8%. Capital One 36 month loan interest rate is 2.99%.
Just like with anything else, it pays to do your homework ahead of time and compare your options.
Just like with anything else, it pays to do your homework ahead of time and compare your options.
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