leasecompare.com
Lead Lap
Joined: Oct 2006
Posts: 467
Likes: 2
From: MD
I don't know where a 60% residual on a 3 year lease is considered low, it is about the highest in town...
Anyone looking for the calculator, it is easy:
Example 3 year 12k lease sold at MSRP:
MSRP: $71,000
Residual: $42,600 (current 60% residual)
Depreciation: $28,400 (MSRP- residual)
Monthly Depreciation cost:
$28,400/36 (months of term) = $788.88
Finance cost:
($71,000 + $28,400)x .00265 (current money factor tier 1)= $263.41
Total: $788.88+$263.41=
$1052.29 plus all fees/taxes
As a comparo I checked with a buddy at MB, he quoted me $1400 a month 0 down on an S550 stickered at roughly $98-99K (+ fees and taxes).
Ed
Anyone looking for the calculator, it is easy:
Example 3 year 12k lease sold at MSRP:
MSRP: $71,000
Residual: $42,600 (current 60% residual)
Depreciation: $28,400 (MSRP- residual)
Monthly Depreciation cost:
$28,400/36 (months of term) = $788.88
Finance cost:
($71,000 + $28,400)x .00265 (current money factor tier 1)= $263.41
Total: $788.88+$263.41=
$1052.29 plus all fees/taxes
As a comparo I checked with a buddy at MB, he quoted me $1400 a month 0 down on an S550 stickered at roughly $98-99K (+ fees and taxes).
Ed
Driver
Joined: Aug 2003
Posts: 187
Likes: 1
From: California
Using EKM's financing formulas, your monthly payment should be $1305 before taxes. I don't live in MD, but I believe the tax rate is 5% there? If so, the final number with taxes would be $1370.
Shall we assume the rest is dealer financing markup?
Shall we assume the rest is dealer financing markup?
Lexus Test Driver
Joined: Jan 2005
Posts: 936
Likes: 0
From: WV
dmitry, are they rolling in some of your up-front taxes into the lease payment? in maryland they collect all your taxes up front which would make your initial down payment higher than you quoted, but your payment less. i would bet thats the case if i had to guess.
Driver
Joined: Jan 2004
Posts: 102
Likes: 0
From: Arizona
thought about using the multiple deposit?
I think Lexus allows you to use mulitple desposit to lower the money factor. For each deposit, it lower the money factor by 0.0001 (roughly 0.24%). We did it with an 02 LS430 Ul and 02 SC430 (roughly 81K with a sales price of 76K for the LS430). The total deposit was in the neighborhood of $7500 and it save about $120 or so a month in payment (the rent + tax portion of the lease) . At the end of the lease, we get all the deposit back. You can run the number use the lower money factor and it should give you the right number. Also for people in Calfornia or state that tag the sales tax on to the monthly payment, you save a portion of the tax as well. At the time we did it, the finance manager has to call Lexus to confirm, so it is not widely known.
You wouldn't expect good money factor at this stage. Manufactorer loss money on good money factor. If the car is hot, we'll be lucky to get 0.003. However, the residual is low. It is probably has to do with the amount of gadget in the car. And over the year (we leased 6 lexus since 91), I found the Lexus residual are pretty spot on for trade in as well. However, if you want to sell it yourselves, you can do substantially better than Lexus quote.
You wouldn't expect good money factor at this stage. Manufactorer loss money on good money factor. If the car is hot, we'll be lucky to get 0.003. However, the residual is low. It is probably has to do with the amount of gadget in the car. And over the year (we leased 6 lexus since 91), I found the Lexus residual are pretty spot on for trade in as well. However, if you want to sell it yourselves, you can do substantially better than Lexus quote.
Last edited by topgun04; Nov 6, 2006 at 07:24 PM. Reason: add the money factor section.
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