Leasing in GA (continuation from other thread)

[blackbeasst]

Wait a sec: on a lease you want a high residual. That makes the payment smaller.

In a lease you are paying for the difference between the "purchase price" and the residual. Thus a higher residual means a lower monthly payment. By telling the dealer the "residual is too high" you are asking for a higher payment.

i want both. low payment and low residual

worse case they can't do anything for me. no harm, no foul. i still have a 42mpg car that works just fine. my wife will just have to wait to get her hands on it from me!

Why do you want a low residual? Are you planning to buy it out at the end of the lease?

possibly. the only reason i want the low residual is due to the mileage. the monthly price on an 18,500 mile isn't gonna happen. the 10,500 mile is doable, but i'll eat up that mileage in 7 months. which puts me paying .15/mile over if i drop the keys with them after 3 years. if i plan on buying it i want it for as cheap as possible.

 

[blackbeasst]

got the original dealer down to this:

"I can get you down to $340 for 36 months with $500 down and $337 for 39 months with the $500 down. We are getting you a more aggressive rate and discounting the car $1,000, which is something we normally don't do since we can sell it to other dealers at sticker. Let me know what you think. Thanks again!"

 

[hybridbear]

got the original dealer down to this:

"I can get you down to $340 for 36 months with $500 down and $337 for 39 months with the $500 down. We are getting you a more aggressive rate and discounting the car $1,000, which is something we normally don't do since we can sell it to other dealers at sticker. Let me know what you think. Thanks again!"

A monthly payment only tells a small part of the story. The key to knowing if you're getting a good deal or not is to look at the:

• Capitalized cost reductions
  Residual value
  Rent charge

If you post those three pieces of information then you can get good comparisons between dealers.

Edit: Because then you can see how much the dealer is discounting the car to reduce the capitalized cost (and thus reducing the monthly payments). You can also compare the residual value between dealers, and with other posters online, to make sure that you're getting a fair deal. And you can compare the lease factor rate by comparing the total rent charge over the life of your potential lease with the rent charges that others are paying.

 

[blackbeasst]

got the original dealer down to this:

"I can get you down to $340 for 36 months with $500 down and $337 for 39 months with the $500 down. We are getting you a more aggressive rate and discounting the car $1,000, which is something we normally don't do since we can sell it to other dealers at sticker. Let me know what you think. Thanks again!"

A monthly payment only tells a small part of the story. The key to knowing if you're getting a good deal or not is to look at the:

• Capitalized cost reductions
  Residual value
  Rent charge

If you post those three pieces of information then you can get good comparisons between dealers.

Edit: Because then you can see how much the dealer is discounting the car to reduce the capitalized cost (and thus reducing the monthly payments). You can also compare the residual value between dealers, and with other posters online, to make sure that you're getting a fair deal. And you can compare the lease factor rate by comparing the total rent charge over the life of your potential lease with the rent charges that others are paying.

i'll ask for those pieces of info when i hear back.

 

[blackbeasst]

"Your residual value is $15,905.70 and the net cap cost reduction is $9,345.72. As far as rent fees go Ford does not have any that we are aware of"

 

[hybridbear]

"Your residual value is $15,905.70 and the net cap cost reduction is $9,345.72. As far as rent fees go Ford does not have any that we are aware of"

That can't be right. Look at the lease contract posted by ElectricAZ here. You want that kind of detailed breakdown so that you can compare prices between dealers.

 

[blackbeasst]

"Your residual value is $15,905.70 and the net cap cost reduction is $9,345.72. As far as rent fees go Ford does not have any that we are aware of"

That can't be right. Look at the lease contract posted by ElectricAZ here. You want that kind of detailed breakdown so that you can compare prices between dealers.

are the numbers he gave me too good? i'll see if i can get a broken down pdf with everything and report back.

 

[hybridbear]

"Your residual value is $15,905.70 and the net cap cost reduction is $9,345.72. As far as rent fees go Ford does not have any that we are aware of"

That can't be right. Look at the lease contract posted by ElectricAZ here. You want that kind of detailed breakdown so that you can compare prices between dealers.

are the numbers he gave me too good? i'll see if i can get a broken down pdf with everything and report back.

It's hard to compare when no one else has posted about such a high mile lease that I can recall. The TTL fees are non-negotiable so they should be the same across all dealers. Most states also regulate the dealer fees which means their cost should also be the same. So the three items you can potentially negotiate are the three mentioned above. Since you're going for a higher mileage lease your residual value will be lower than someone doing a 12k/yr lease. Check out the thread I linked above for examples of what others have found for residual values on 12k miles/yr & 10.5k miles/yr leases. Then you can compare what this dealer quotes for the residual for your 18k miles/yr lease to see if it seems legitimate.

The main thing you can negotiate though are the capitalized cost reductions. The Ford.com lease calculator seems to assume that the dealer does not reduce the capitalized cost at all, but rather charges you MSRP. If you go to Toyota.com and look at their advertised leases you'll note in the fine print that "dealer participation may vary" because those deals require dealers to chip in and sell the car near invoice price.

The difference between the capitalized cost & the residual value is the amount of depreciation that you pay for in the lease.

The rent charge is determined by the lease factor rate and the depreciation that you're paying for.

Your payment is the sum of all the parts. Negotiating more capitalized cost reductions reduces the depreciation you're paying for during the lease. This also reduces your rent charge. The same is true when you negotiate a higher residual value. That is why you want the highest residual value possible. The rent charge is a small piece of the pie over a multi-year lease. However, if you put $0 down then you're rolling your TTL & dealer fees into the lease and are thus taking money away from your capitalized cost reduction. The example posted above by ElectricAZ was $0 down. That means that part of the $11,000 in incentives ($7500 tax credit & $3500 Ford incentive) went to paying his TTL instead of reducing his capitalized cost.

 

[blackbeasst]

not sure if i clarified previously, all these numbers are based on a 10,500 mile/year lease. i scrapped the 18k/mile lease. too rich for me.

mileage over is .20/mile not .15 like i thought before.

 

[hybridbear]

not sure if i clarified previously, all these numbers are based on a 10,500 mile/year lease. i scrapped the 18k/mile lease. too rich for me.

mileage over is .20/mile not .15 like i thought before.

Ok. Then you can compare directly to the quotes in the other thread for what your residual value should be for a 10.5k mi/yr lease. For that kind of lease your payment should be under $300/month with $0 down. ElectricAZ did $0 and is under $275/month on a 10.5k mi/yr lease.

 

[hybridbear]

"Your residual value is $15,905.70 and the net cap cost reduction is $9,345.72. As far as rent fees go Ford does not have any that we are aware of"

Your residual & cap cost reduction are fairly close to what ElectricAZ posted. However, your payment is way higher than his. This means that the dealer is either:

• marking up the "agreed upon price of the vehicle"
  charging a high rent charge

I would encourage you to read this entire thread if you haven't done so already. That will give you a good idea of what a reasonable price is.
http://www.myfocuselectric.com/forum/viewtopic.php?f=3&t=1716

 

[blackbeasst]

"Your residual value is $15,905.70 and the net cap cost reduction is $9,345.72. As far as rent fees go Ford does not have any that we are aware of"

Your residual & cap cost reduction are fairly close to what ElectricAZ posted. However, your payment is way higher than his. This means that the dealer is either:

• marking up the "agreed upon price of the vehicle"
  charging a high rent charge

I would encourage you to read this entire thread if you haven't done so already. That will give you a good idea of what a reasonable price is.
http://www.myfocuselectric.com/forum/viewtopic.php?f=3&t=1716

im sure credit score plays in to that, correct? if so, not knowing his score doesn't seem to help others. mine is hovering around 675 with a BK 3.5 years ago. so im sure thats part of the higher payment

and here's the pdf breakdown

 

[hybridbear]

"Your residual value is $15,905.70 and the net cap cost reduction is $9,345.72. As far as rent fees go Ford does not have any that we are aware of"

Your residual & cap cost reduction are fairly close to what ElectricAZ posted. However, your payment is way higher than his. This means that the dealer is either:

• marking up the "agreed upon price of the vehicle"
  charging a high rent charge

I would encourage you to read this entire thread if you haven't done so already. That will give you a good idea of what a reasonable price is.
http://www.myfocuselectric.com/forum/viewtopic.php?f=3&t=1716

im sure credit score plays in to that, correct? if so, not knowing his score doesn't seem to help others. mine is hovering around 675 with a BK 3.5 years ago. so im sure thats part of the higher payment

The rent charge is where your credit score is a factor. Your dealer is claiming that the rent charge is $0.

 

[blackbeasst]

updated past post with breakdown

 

[hybridbear]

updated past post with breakdown

What are the "inception fees" in the "Cap Cost Reduction" section?

What are the "fees" in the "Cap Cost" section?

The big area where your quote differs from others is in the discount off the selling price. This dealership is charging a lot. Other dealers have been selling these cars at or below invoice.

Your rent charge total of $163.44 is quite reasonable.

 

[blackbeasst]

$2154.28 is tax and first payment.

$1346 is $599 doc fee, $99 registration fee, $3 GA lemon law fee, $645 acquisition fee

 

[hybridbear]

$2154.28 is tax and first payment.

$1346 is $599 doc fee, $99 registration fee, $3 GA lemon law fee, $645 acquisition fee

Wow! A $599 doc fee! That's crazy!! What is the law in GA about that fee? Perhaps you can negotiate & lower it? In MN the maximum is $75 and thus everyone charges $75. Also, you should push back on the acquisition fee. Other leases posted in the aforementioned thread had a $0 acquisition fee.

How high are your taxes in GA on cars? Are you paying taxes on the entire MSRP of the car or just on the depreciation portion?

 

[blackbeasst]

here's the new ga tavt description

http://onlinemvd.dor.ga.gov/Tap/welcome.aspx

i'll ask tomorrow and see about the doc fee and acquisition fee. all the while still trying to persuade a level 2 and installation out of them now that i know the price

 

[blackbeasst]

from what i've researched, the average doc fee in GA is $507. i also see that it is rarely negotiable. so im not crossing my fingers to get that lowered.

now that i have a price its time to see what i can do as far as getting a free evse and install at both houses :twisted:

 

[ElSupreme]

In Georgia the 'sales tax' is nothing. But we have a Motor Vehicle tax that is (this year) 6.75% of the price of the car before discounts.

I paid a total of $599 in fees to purchase my car two weeks ago. That seems pretty standard in Georgia. Obviously there will be a lease origination fee on top of that.