Hello all,

I'm planning on leasing a 04 S2K but I was wondering if I'm getting a decent deal.

Selling price: $30,019
Miles: 12K/year
Residual: $17,310.80
Money factor: .245

Due at signing is $595 acqusition fee and $1,100 from my trade-in

$404/mo. (tax included)

I never leased a car before so your info/feedback will be very helpful. I'm so excited to join this forum.

Thanks
Ryan

 

Which dealership? (Just out of curiosity)

What is the duration of the lease?

Is this going to be your daily driver? I ask to make you think about the $12,000 a year. If this is a weekend car, and stored in the winter than $12k is no problem.

 

It's for 48 months. This will be my fun car except in winter...I got the quote from lisle.

 

I just ran the numbers and the ammount of interest you are paying on that lease would be equivalent to a 4-year loan at OVER 11% interest.

If you add all your payments together and the inital fee and the residual it is ~ $37,000. You are paying over $7000 in interest over 4 years.

Conventional loan rates are at ~ 5.5% so you are getting hosed. They gave you a great price on the car, but you are more than paying for it in the financing.

 

Ditch the lease. If you qualified for a lease you will qualify for a loan through Capitol One Auto Finance. If you are looking at 48 months you could get a rate for 4.49% through them.

Once they qualify you they will send you a blank check that you can take to the dealer. You simply make the check out for $30,019 and drive away with the satisfaction of knowing you didnt get hosed by the dealers financing.

You payment should be cheaper too if you go this route.

 

There's couple of reasons why I decided to lease the car:

1) I trade in my car frequently
2) I want to keep my payments at $400 or less w/o putting any money down other than my $1300-$1500 positive equity from my trade-in

Thanks for your help.

 

with everything except the payment. It would be higher with only 1200-1500 down.

 

hmmm...

I ran the numbers you gave through edmunds.com and came up with THIS

Apparently you can buy the car over 48 months for the same monthly payment as leasing it....and after 4 years its yours and you wont have to fork out 17k

I know edmunds is well respected but that doesnt seem right to me - do you think the site has gone screwy???

I was expecting the loan payments to around 600-650 per month.

hmmm...