[FaintReality]

I am trying to decide between financing the car or going on a 36 month/10k mi per yer lease. I am new to a lease and just started doing re-search today so any help would be greatly appreciated.

Now, if I were to finance the car through my bank, I can get a 5.74% interest rate for up to 84 months w/ $0 down. So at the negotiated price of $48,295 + tax & fees at 5.74% interest for 84 months w/ $2113 for a down payment, I am looking at $737.10 monthly vs the lease at $785.71 monthly (see invoice below). So the finance option is cheaper payment wise, but then again, we are talking a 7yr loan

Now I have a few questions...

The montly lease charge of $228.14 listed on the invoice below is equalivent to a percentage rate of 6.34% correct? ** $228.14 / 36 (term)= 6.34% **

With this in mind, is this lease charge / money factor dependant upon my credit approval and/or negotionable? If so, I can potentially lower my payments... As of today, I have a FICO score of 771 (trans) / 759 (exp) / 761 (equ), but am expecting these scores to jump at the end of the month (once reported) since I just put down a little over $4200 to pay off my Acura RSX-S and will be selling the truck within the next week, having no vehicle payments.

Also, can anyone explain the 1st yr fees (Acquisition Fee?) of $374.75 and the other up front fees (Title, Registration & Other Costs?) of $880 listed on the invoice below? I am a little confused on these and didn't find much info describing.




Here is the car w/ the features agreed upon for the $48,295


08 Alpine White w/ black leather upholstery


205 STEPTRONIC automatic transmission

2XA Paddle Shifters

322 Comfort Access system

4AS Gray Poplar wood trim

609 Navigation system

655 Satellite radio

ZPP Premium Package

ZSP Sport Package

[FaintReality]

Well, I got the cap cost down another $500 and am going to speak w/ them about the money factor since I found out the base is 0.00235 and my latest quote w/ the new cap cost is 0.00262

[helmsleyl]

I'd say buy it, that's an incredibly low interest rate for a 7 year loan. And you can always pay it off ahead of time if/when you have some extra cash.

Consider the fact that you're in SoCal, unless you have another car or doesnt have to commute, 10k miles will not be enough for you.

Usually, the most important advantage of leasing is to have a lower monthly payment, but since you get a lower payment from buying, you should do that.

[nightops]

what is the invoice on the car? it seems like you could do better on the price negotiation and 10k isnt' much miles, you should spec out the lease with something more realistic like 12-15k a year (unless you have a second car that you can alternate with) and see how the numbers match then. If you have the mindset that your going to want to keep it longer than 3 years, I'd go for the buy, and you can sell it later.

[FaintReality]

Originally Posted by helmsleyl

I'd say buy it, that's an incredibly low interest rate for a 7 year loan. And you can always pay it off ahead of time if/when you have some extra cash.

Consider the fact that you're in SoCal, unless you have another car or doesnt have to commute, 10k miles will not be enough for you.

Usually, the most important advantage of leasing is to have a lower monthly payment, but since you get a lower payment from buying, you should do that.

I have decided to lease the car since I don't want to be stuck later down the road trying to sell the car like I was with the truck...

I am going to talk with them today about the money factor so that should drop my rate as well!

[FaintReality]

Originally Posted by nightops

what is the invoice on the car? it seems like you could do better on the price negotiation and 10k isnt' much miles, you should spec out the lease with something more realistic like 12-15k a year (unless you have a second car that you can alternate with) and see how the numbers match then. If you have the mindset that your going to want to keep it longer than 3 years, I'd go for the buy, and you can sell it later.

I ended up getting the car down $2k below MSRP. As for the miles, I can buy more before the lease is up if I go over at like 16 cents per mile

[turbocab88]

YOU CAN GET A MUCH BETTER DEAL! 1st the $880 upfront charge is for liscensing and documentation fee another thing you can negotiate... honestly how good of a negotiater you are and how much room you know the dealer has will get you the best price. For ex. my dad and I just recently helped my sister with her loan on her e90 335i. keep in mind the asking price was $49,887 we bargained the asking price down to $45,000 (this should be your first step getting the asking price as low as you can. Next you can even bargain on residual value of the car ( Your payments are basically depericiation over X years plus interest and what ever else they can get out of you). That what ever else should be $0 if youre smart. Last if it take 8 hours of you guys going back and forth till the dealership is about to close down do it! THINK TO YOURSELF IS SAVING $100-$200 dollars amonth worth 8 hours of my time??? basically the dealership we went to started out asking for $6,000 down and $690 a month and we got them down to $2500 down $520 amonth 12K a year for 3 years!!!! GOOD DEAL? another thing to keep in mind if you havnt purchased the car yet wait till new years eve and hope that they have an 07 you will think youre getting a steal! if you have any other questions ill be happy to answer... as far as a 7 year loan goes PERSONALLY I WOULD NEVER

[ALPINE6SPD]

why would you finance it for that long? If that is the only way you can pay for the car it means you really cant afford it. Not trying to be an asshole but it really is the truth. That is nuts to pay for a 48k car for 7 years.