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Lease comparisons not Linear.... Posted by Mike LYnch [Email] ![]() ![]() In Reply to: Any tempting deal going on on 04 SS Aero?, J Lew, Thu, 20 May 2004 21:20:10 Members do not see ads below this line. - Help Keep This Site Online - Signup |
There's a $269 lease for a $30k MSRP 9-3 Linear on the SaabUSA website and it's pretty simple comparison to say that a car that's $5k more, say $35k for an Aero or an Arc, should add the same proportion to the lease payment.
So 16% more price is 16% more payment, NO it doesn't work that way. Even with the same rates and residuals. You have to look at the total investment, not the proportion. 16% more ($30k vs $35k) than $269 = $312, that's an additional $43 a month times 23 month (only 23 months as the first month is already paid at driveaway) is a total of $989. You can't get $5k more car for only $989 in payments.
You can get the $5k more for only about $2,760 in payments, but when you factor in the term of only 24 months that adds $120 to the payment, $2,760 divided by 23 months.
I'm pretty familiar with the effects of price differences on 36 and 48 month terms, but 24 months is a whole new ballgame and the effects are manified out of proportion.
posted by 63.197.222...
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