Click Banner for Details on this Saabnet.com Classified

There are basically three key elements to a lease: capital cost (effectively the purchase price), the residual value, and the money factor (effectively the interest rate).

My 03 Linear was my first lease, and I did find what Mike is saying to be true-- they wouldn't negotiate the residual. In addition, the money factor they offered right up front was low enough that I didn't bother to try to negotiate it.

So that left the capital cost, and this was VERY negotiable, just like any other purchase. In fact, I said I wanted to negotiate the price first and then talk lease or buy, and the salesperson was perfectly fine with this approach. (In some cases this might not be entirely true, in particular if the manufacturer to dealer incentive is different for a sale versus a lease.)

That said, however, my understanding is that, at least in theory, a dealer can use any one of many financing companies to do a lease, and for a particular car at a particular moment, these companies may offer different deals with different residuals and money factors. This means you should be able to negotiate both. Of course, it does get a little complicated because these two elements (residual and money factor) also vary depending on the specific lease terms (e.g., all else being equal the residual should be lower for a lease allowing more miles).

When I did this, I was a complete newbie, but in about 15 minutes on the Web, I found a good site, paid about 30 bucks and got some good reading material and a nice program to calculate leases. I can’t remember the URL, but the software was called LeaseWizard.


posted by 24.151.50...

• Lease With Trade In, Jimmy, Thu, 23 Oct 2003 19:27:47
  • Yep, cash back, fairly common...., Mike Lynch , Fri, 24 Oct 2003 12:03:15
  • Re: Lease With Trade In, chris74, Fri, 24 Oct 2003 04:25:50
    • 10 day payoff....., Mike Lynch , Fri, 24 Oct 2003 12:12:35
    • and be sure..., chris74, Fri, 24 Oct 2003 04:26:49
  • Re: Lease With Trade In, eddie, Thu, 23 Oct 2003 21:50:40
    • I would have thought not, Lee, Fri, 24 Oct 2003 04:36:48
      • Like everything else at a dealer, it's negotiable, phred, Fri, 24 Oct 2003 09:40:57
        • Re: Like everything else at a dealer, it's negotiable, DaveC, Fri, 24 Oct 2003 09:58:18
          • Best overall deal, case by case....., Mike Lynch , Fri, 24 Oct 2003 12:32:54
            • Re: Best overall deal, case by case....., DaveC, Fri, 24 Oct 2003 13:52:02
              • What's wrong with that?... ;-)....., Mike Lynch , Sat, 25 Oct 2003 11:07:37
          • Whenever I've looked at this matter, phred, Fri, 24 Oct 2003 10:50:10
          • Re: Like everything else at a dealer, it's negotiable, Lee, Fri, 24 Oct 2003 10:32:28
            • Interesting..., DaveC, Fri, 24 Oct 2003 11:32:43
              • Residual = fixed % of MSRP...., Mike Lynch , Fri, 24 Oct 2003 12:40:45
                • So you're saying..., DaveC, Fri, 24 Oct 2003 15:02:14
                  • Residuals go in cycles....., Mike Lynch , Sat, 25 Oct 2003 11:48:00
                  • Re: So you're saying..., Lee, Fri, 24 Oct 2003 17:46:47 <-- Viewing This Message
              • Thanks for all the great info!, Jimmy, Fri, 24 Oct 2003 12:20:31

No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.

• Prev by Date: (none)
• Next by Date: I test drove all flavors, you should too, if possible., Dave in Houston, Fri, 24 Oct 2003 18:32:46
• Main 9⁵ Bulletin Board

StateOfNine.com

SaabClub.com

Jak Stoll Performance

M Car Covers

Ad Available

The content on this site may not be republished without permission. Copyright © 1988-2024 - The Saab Network - saabnet.com.
For usage guidelines, see the Mission & Privacy Notice.
[Contact | Site Map | Saabnet.com on Facebook | Saabnet.com on Twitter | Shop Amazon via TSN | Site Donations]

Random Saabnet.com Member Gallery Photos (Click Image)