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Not always...
Posted by TheOriginalArcader [Email] (more from TheOriginalArcader) on Mon, 20 Sep 2004 11:14:28
In Reply to: Low residual is good for the consumer.., Mike Lynch [Profile/Gallery]
, Fri, 17 Sep 2004 12:46:47
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The leasing wisdom I always looked for was a high residual to minimize the total outlay during the lease.
What the dealer quoted me was that Saab Financial set the residual at 45% after three years to compensate for the $4000 manufacturer-dealer incentive.
Without knowing some other information, it could be a good deal, and okay deal or a crummy deal. The fact that they had a cash incentive *and* 0.5% interest makes the lease good. If the residual was 50% of MSRP instead of 45%, it would have been better!
I don't know how other people saw Arc leases in the low $300 range. The only thing I could think off (all packages being equal) was that they were discounting the car even more from MSRP or the residual was higher (maybe not going through SFC?).
Ron
posted by 66.94.74...
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