Date: Fri, 10 Sep 1999 18:47:08 GMT From: kr4nopsamnyu.edu (Kalman Rubinson) Subject: Re: 1999 9-3 Lease question
Norman L. Kleinberg (Norman_Kleinbergnopsamch.cuny.edu) wrote: > In short, some of the great lease deals on SAABs might be due to the required > residual value. IOW, to get the deal you have to basically insure that the > market value of the car you return is $X. You need to see if X is realistic; > there's a decent chance it isn't, so that you have to make up the difference. > It's sort of like points on a mortgage, except you pay an uncertain amount at > the end<g>. Not entirely the story. The car must be returned without excessive damage or wear as determined by the mileage/age. The residual value doesn't enter into the calculation. It only determines the price you can purchase the car for at the end of lease. We have, typically (3 times with Saabs), negotiated for high residuals because we have no intention of buying at the end of lease. Last time (7/99), the bank returned our security deposit in full because there was nothing wrong with the car (they thought). Residual value was not an issue. Kal
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