banner

Go Back   CarClubTalk.com > Car and Finance > Car Lease
Register FAQ Members List Calendar


Reply
 
Thread Tools Display Modes
  #1 (permalink)  
Old 10-04-2006, 05:51 AM
Member
 
Join Date: Feb 2006
Posts: 31
Default How do dealerships calculate your lease payment?

I'm about to lease a Lexus IS 250, and want to make sure I am getting the best deal out there. How can I find out what is the realistic minimum payment for this car is?
Digg this Post!Add Post to del.icio.us
Reply With Quote
  #2 (permalink)  
Old 10-09-2006, 11:13 PM
Member
 
Join Date: Jan 2006
Posts: 34
Default How do dealerships calculate your lease payment?

get yourself an Amortization Schedule, if they don't have one make sure you have access to one or know what you want prior to the purchase of your auto
Digg this Post!Add Post to del.icio.us
Reply With Quote
  #3 (permalink)  
Old 10-15-2006, 04:36 PM
Member
 
Join Date: Jun 2006
Posts: 36
Default How do dealerships calculate your lease payment?

Your lease payment is based on how much the car is worth now vs. how much it would be worth at the end of the lease. You pay the difference through your payments, as well as a little extra for the dealership themselves.
Digg this Post!Add Post to del.icio.us
Reply With Quote
  #4 (permalink)  
Old 10-21-2006, 09:58 AM
Junior Member
 
Join Date: Jul 2006
Posts: 22
Default How do dealerships calculate your lease payment?

I guess you know about the contract. Usually for 2-3 years with a down payment and monthly installments. At the end of the contract you do not own the car... Turned back to the dealer If the mileage allowance has gone over--- must pay a penalty per mile...Estimate should be close to $400 a month..Get facts and figures straight from the dealers mouth...
Digg this Post!Add Post to del.icio.us
Reply With Quote
  #5 (permalink)  
Old 10-27-2006, 03:21 AM
Junior Member
 
Join Date: May 2006
Posts: 28
Default How do dealerships calculate your lease payment?

you can do the same this as the dealer using this formula:Residual value + Price x money factor = ASelling price - Res value / term= BA + B = Total monthly payment plus taxes on those payments.
Digg this Post!Add Post to del.icio.us
Reply With Quote
  #6 (permalink)  
Old 11-01-2006, 07:43 PM
Member
 
Join Date: Mar 2007
Posts: 31
Default How do dealerships calculate your lease payment?

God Bless you...When you lease, basically this is how it works. The finance company determines what percentage of the MSRP the vehicle will be worth at the end of the lease. This is called your residual value. They then take the residual value and subtract it from the MSRP (or the amount you have negotiated to). This amount, minus any trade value, plus any negative equity, is the amount on which your payments are figured. There is a finance fee, but basically it goes like this.$35,000 MSRP X 52% =$18,200 residual value$35,000-$18,200=$16,800 -$3000 trade equity=$13,800$13,800/36 months =$383So your payment in this scenario should be close to $384-$400. Compare that to financing $35,000-$3000=$32,000 for 60 months at 7.5%=$641. So roughly half the payment for half the time commitment, all of the warranty and NO RISK of being tipped when you are ready to trade. Seems like a no brainer to me.As far as knowing that you are getting the abslute cheapest lease payment, NEGOTIATE the sale price of the vehicle BEFORE you talk payment.
Digg this Post!Add Post to del.icio.us
Reply With Quote
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT. The time now is 01:16 AM.


Ad Management by RedTyger
A vBSkinworks Design