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  #97  
Old 04-27-2013, 06:07 PM
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Quote:
Originally Posted by torifile View Post
So I leased my truck this morning. Overland with tech package. I did a 39 month lease so that if I decide to buy it at the end, I've had 3 more months of an interest rate at .23% before I need to secure financing for it.

This is the crazy thing about the lease interest rate being so low, with residuals being kinda low too. Even if I wanted to buy, it would have been cheaper to lease it first since Ally doesn't charge a fee. This month, there was no admin fee either. Cheaper money than I thought I could have ever gotten.
Congrats on the new truck. Did you get 12k or 15k/year lease?
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  #98  
Old 04-27-2013, 06:37 PM
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Re: 14' Lease Rates (April)

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Originally Posted by Ncstreamer View Post
Congrats on the new truck. Did you get 12k or 15k/year lease?
15k. That's one of the reasons I felt comfortable extending my lease to 39 months. It'll be out of warranty well before the end of my lease. Had I done a 12k/36 month lease, it would have been more of a consideration. But I can't see myself driving any less than 14k miles/year. I'll have to pay registration again, but that's only $33.

Btw, it was remarkably easy dealing with Autopark after I told them I was planning on deciding by mid afternoon the next day which of the 7 dealers I emailed on the same email. They came in lowest without much of a hassle numbers lined up exactly and as far as I can tell, there was nothing funny in the contract. If you're not keen on driving up to Koons, that is. You know my deal - not as good as Koons but a fair trade off for the convenience. And they put up with a lot of my tire kicking, so they sorta deserved the business anyway.
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Old 04-27-2013, 09:23 PM
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Re: 14' Lease Rates (April)

How would you go about negotiation a lease? Setting up IDL? This is all new to me! But it seems that leasing now and purchasing after 3-years appears to be the "cheaper" option with the current lease rates. Do you go negotiate the price at the dealer then use an external bank to set up the lease? Despite leasing my last 2 vehicles, I've never been in this much info that I KNOW I got screwed that my wife would want me to purchase this truck and NOT LEASE again (and tell her I'd lease and purchase after term, again)
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  #100  
Old 04-27-2013, 10:12 PM
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Re: 14' Lease Rates (April)

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Originally Posted by AbleRiot View Post
How would you go about negotiation a lease? Setting up IDL? This is all new to me! But it seems that leasing now and purchasing after 3-years appears to be the "cheaper" option with the current lease rates. Do you go negotiate the price at the dealer then use an external bank to set up the lease? Despite leasing my last 2 vehicles, I've never been in this much info that I KNOW I got screwed that my wife would want me to purchase this truck and NOT LEASE again (and tell her I'd lease and purchase after term, again)
1) Negotiate the price as if you're buying it.
2) If you can avoid it, don't even mention how you'll be paying.
3) after you've agreed to a selling price, then talk about lease terms. I couldn't do the IDL program because I couldn't find an independent leasing company. Your experience may be different. Even if you can find another company, run the numbers because you'll never find such a low interest rate elsewhere. If you do, make sure you understand how the interest rate will affect your cost.

In my situation, I was able to get a price that I considered good (over 4% below invoice) and the interest rate made it a no brainer. Even now, after having signed the lease and gone over the terms ad nauseum, I can't see how financing would have been a better option than leasing.
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Old 04-29-2013, 06:08 AM
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Re: 14' Lease Rates (April)

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Originally Posted by torifile View Post
1) Negotiate the price as if you're buying it.
2) If you can avoid it, don't even mention how you'll be paying.
3) after you've agreed to a selling price, then talk about lease terms. I couldn't do the IDL program because I couldn't find an independent leasing company. Your experience may be different. Even if you can find another company, run the numbers because you'll never find such a low interest rate elsewhere. If you do, make sure you understand how the interest rate will affect your cost.

In my situation, I was able to get a price that I considered good (over 4% below invoice) and the interest rate made it a no brainer. Even now, after having signed the lease and gone over the terms ad nauseum, I can't see how financing would have been a better option than leasing.
which Bank did you end up going through? Whats the "Bank Fee"
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  #102  
Old 04-29-2013, 06:33 AM
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Re: 14' Lease Rates (April)

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which Bank did you end up going through? Whats the "Bank Fee"
can someone please advise the current "Bank Fee" for US Bank and Ally?
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  #103  
Old 04-29-2013, 07:50 AM
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Re: 14' Lease Rates (April)

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Originally Posted by ct10004 View Post
can someone please advise the current "Bank Fee" for US Bank and Ally?
I used Ally.

The bank fee is called "admin fee" or "acquisition fee". The current acquisition through Ally is $0 for top credit. I have no idea what it is for US Bank.
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  #104  
Old 04-29-2013, 07:53 AM
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Re: 14' Lease Rates (April)

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Originally Posted by torifile View Post
I used Ally.

The bank fee is called "admin fee" or "acquisition fee". The current acquisition through Ally is $0 for top credit. I have no idea what it is for US Bank.
perfect - thank you!
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  #105  
Old 04-29-2013, 10:08 AM
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Re: 14' Lease Rates (April)

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Originally Posted by torifile View Post
I used Ally.

The bank fee is called "admin fee" or "acquisition fee". The current acquisition through Ally is $0 for top credit. I have no idea what it is for US Bank.
Thank you for your thorough posts - very savvy with the premeditated lease->purchase. I just purchased the same truck as you, but w/o the tech package, 6% under invoice, 5yr @ 1.8%. Curious what kind of total $$ you are saving if you do end up purchasing? Or is the value in simply the option to walk away in 39 months?
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  #106  
Old 04-29-2013, 10:39 AM
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Re: 14' Lease Rates (April)

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Originally Posted by darkom View Post
Thank you for your thorough posts - very savvy with the premeditated lease->purchase. I just purchased the same truck as you, but w/o the tech package, 6% under invoice, 5yr @ 1.8%. Curious what kind of total $$ you are saving if you do end up purchasing? Or is the value in simply the option to walk away in 39 months?
I would almost never just "walk away" at the end of a lease, especially one like this. That is what the bank is "banking on". They set the residual so low, you are basically paying off half of the car in 3 years, at nearly 0% interest (0.23%). Plus, since the admin fee is waived and you don't have the taxes up front you save immediately. On a purchase, I would have had to pay roughly $3,000+ in taxes and DMV fees out of pocket, and had an interest rate of 2% or higher for the 6 year term. On the lease you pay the taxes on your monthly payment so you save there. My out of pocket cost with first months payment would have been about $900 or so, but since the interest was so low and my checking account earns 1.57% interest on the money I keep in there, I rolled it all into the payment.

The residual will be about $25k and change at the end of the 36 months (or 39 for torifile). If we decide to buy we can take a used car loan and get a 3 year old JGC for only that price. Or we can sell (private, carmax, dealer, etc) and most likely we will have positive equity since we have paid off a lot of the car relatively quickly. It's impossible to see 3 years down the road (unless you have one of those magic crystal balls), but looking back at a 3 year old Overland with roughly 36-40k miles... you will be hard pressed to find one for cheaper than $34k. That puts us at approx $8-9k in positive equity to use towards something new in 3 years if we wanted to, with the option to walk away if things go sour. On a purchase, all of that responsibility is on you even if you change your mind.

The only way I wouldn't lease is if the money factor was higher than the equivalent interest rate than a purchase, and I was sure I would drive more than 15k miles per year.

Sorry for the long response, I know you weren't asking me, but I thought I'd share my thought process because I was debating at financing for 5 years at 1.74% or 6 years at 2%. I just couldn't justify it. If the rates go way up in 3 years for used cars, I might take a slight hit, but I'm saving a ton of money now.
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  #107  
Old 04-29-2013, 10:49 AM
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Re: 14' Lease Rates (April)

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Originally Posted by adthebadstud View Post
I would almost never just "walk away" at the end of a lease, especially one like this. That is what the bank is "banking on". They set the residual so low, you are basically paying off half of the car in 3 years, at nearly 0% interest (0.23%). Plus, since the admin fee is waived and you don't have the taxes up front you save immediately. On a purchase, I would have had to pay roughly $3,000+ in taxes and DMV fees out of pocket, and had an interest rate of 2% or higher for the 6 year term. On the lease you pay the taxes on your monthly payment so you save there. My out of pocket cost with first months payment would have been about $900 or so, but since the interest was so low and my checking account earns 1.57% interest on the money I keep in there, I rolled it all into the payment.

The residual will be about $25k and change at the end of the 36 months (or 39 for torifile). If we decide to buy we can take a used car loan and get a 3 year old JGC for only that price. Or we can sell (private, carmax, dealer, etc) and most likely we will have positive equity since we have paid off a lot of the car relatively quickly. It's impossible to see 3 years down the road (unless you have one of those magic crystal balls), but looking back at a 3 year old Overland with roughly 36-40k miles... you will be hard pressed to find one for cheaper than $34k. That puts us at approx $8-9k in positive equity to use towards something new in 3 years if we wanted to, with the option to walk away if things go sour. On a purchase, all of that responsibility is on you even if you change your mind.

The only way I wouldn't lease is if the money factor was higher than the equivalent interest rate than a purchase, and I was sure I would drive more than 15k miles per year.

Sorry for the long response, I know you weren't asking me, but I thought I'd share my thought process because I was debating at financing for 5 years at 1.74% or 6 years at 2%. I just couldn't justify it. If the rates go way up in 3 years for used cars, I might take a slight hit, but I'm saving a ton of money now.
But if you're intending to buy all along (at end of lease) those taxes are paid one way or the other, right? Is there real money to be made on this deal other than the interest collected on the delayed payment of taxes?

I appreciate your insight. I get the flexibility of walking away, but then you said you have no intention of walking away - so I guess I'm asking what kind of money do you calculate you save with lease finance rate over 39 months vs 39 months of new car financing? I assume you've calculated that number.
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Old 04-29-2013, 11:20 AM
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Re: 14' Lease Rates (April)

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Originally Posted by darkom View Post
But if you're intending to buy all along (at end of lease) those taxes are paid one way or the other, right? Is there real money to be made on this deal other than the interest collected on the delayed payment of taxes?

I appreciate your insight. I get the flexibility of walking away, but then you said you have no intention of walking away - so I guess I'm asking what kind of money do you calculate you save with lease finance rate over 39 months vs 39 months of new car financing? I assume you've calculated that number.
I know I had already done a more thorough calc, using estimations of interest rates remaining pretty much equal. And CA fees of new cars being the same for used cars (based on price). But I just did a quick run through calc for my vehicle. MSRP of mine is $48,685, my sale price was $43838 after the $1000 conquest cash.

Financing New: $43,838 @ 6 years 2% interest= $46,557.4 + Initial sales taxes and fees of $4,092= $50,649 total payments ish over 6 years.

New: $43,838 @ 5 years 1.74% interest (PenFed)= $45,804.6 + $4,092= $49,896 over 5 years

Lease for 36 months= $598.4 * 36 months = $21,542.4... Residual is $25,316.2.

Then purchase over 2 years (5 years total) at 1.74% (PenFed)= $25776 + veh registration and tax of $2,400= $49,718

Purchase over 3 years same interest= $26,001 + $2,400= $49,942

All of this is trying to be as equal as possible. Barely save any money or maybe even a wash over the 5 to 6 years by leasing first (assuming interest rates stay the same, which we won't know). But, this also gives me the peace of mind that should I change my mind, or get a dud, I can always walk away. Or sell it when I get close to the 3 year mark. And it saves me a TON of money out of pocket NOW. I literally did a sign and drive. Kept the $4,000 in my account to grow with the dividend.

If my math is wrong, someone can correct me. It's Monday morning, so remember that. I know I assumed a lot of things as well. Just showing my thought process through it all.
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