Well it depends on the cap cost/purchase price... - Saab 9-5 Bulletin Board - Saabnet.com
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Well it depends on the cap cost/purchase price...
Posted by John T [Email] (more from John T) on Wed, 26 Jan 2005 21:39:29
In Reply to: Hey Mike - Question, BrianD, Wed, 26 Jan 2005 08:45:45
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"you have to lower the residual 15 cents a mile, which adds to the payment"...only if the purchase price/ capital cost of the car was not adjusted downward as well.
The residual is adjusted down to reflect the value at the end of the lease. It is your job to negotiate the right purchase price/ capital cost based on what you are buying...and if you do your job it is a wash at worst case.
So what I am saying is that your lease payment may be the same as in a new car (non-demo), since you are basically paying back the difference between the cap cost and the residual plus interest. Being a demo to start out with, the car is going to be worth relatively less after the lease, and thus you have a better purchase option (lower cost) in the form of a lower residual. And that is only a benefit if you are buying at the end of the lease.
So what I am saying is that you may in fact NOT be better off leasing a demo... the dealer needs to make a SERIOUS concession in the form of a cap cost/ purchase price reduction to MORE than OFFSET the lower residual so as to make a lease make sense.
That is why demo cars are probably more often purchased outright, at a discount, by a long term owner.
JT
John T
posted by 67.165.22...
Posts in this Thread:
- How's this lease deal sound?, BrianD, Tue, 25 Jan 2005 15:56:37
- Sounds too high-buy new for the best deal, Jas, Thu, 27 Jan 2005 12:51:40
- Killer deal on a cool SportWagon.., Mike Lynch , Tue, 25 Jan 2005 19:54:19
- Why put money down on a lease?, not_too_shabby, Tue, 25 Jan 2005 19:06:57
- One more thing - GM Supplier and Saab Loyalty nm, BrianD, Tue, 25 Jan 2005 18:12:01
- Oops - I meant 3 year lease n/m, BrianD, Tue, 25 Jan 2005 15:57:21
- 24 is cheaper with down....., Mike Lynch , Thu, 27 Jan 2005 15:29:52
- Oh yeah - $340/month, $372 w/ tax, BrianD, Tue, 25 Jan 2005 16:21:37
- Double oops, you did not say how much a moth n/m, Louis, Tue, 25 Jan 2005 16:17:54
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