New to leasing. I have a trade value on my 2015 RR Sport of $33548.45 and looking into possible lease options. I understand it’s not favorable to put money down on a lease so I have mixed feelings since I have 34k of trade value to play with. I typically trade cars every 3 years with low miles so a lease is appealing in order to drive a new vehicle. Over 3 years I’m paying approximately 16k with 1/2 of that going to depreciation costs from my calculations. Money factor of 2.94% coming from previous financing of .9% seems high. Residual value of 55٪ seems fair.
Any feedback would be helpful to guide my decisions as a first time lessee.
I’ve posted a picture of the disclosure sheet. I’m in Utah.
The deal is bad, $1381 a month equivalent.
You don’t have to put the trade value as down payment. Take a check for $34k!
But in this market check what Carvana etc will pay. Probably more than the dealer will.
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That’s a pretty horrible deal, but if that’s what you have to have I don’t think they deal too much on these. Not every car is a good car to lease.
Also never put anything remotely close to that much money down on a lease. Some idiot hits you 2 weeks later and totals it, that money is gone. Put it in a separate account and draw from that to make your $1350 a month payment from.
If you have the $$$ and this is what you have to have, send it.
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Put that trade in money into a savings account to pay your lease every month,
If the car gets totaled next month, you just set $34k on fire.
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No no no.
The RV is set by the bank so there’s nothing you can do about that.
If the MF = 2.94% then that doesn’t seem half bad for a Land Rover as LR dealers play all sorts of games with the MF.
And as mentioned, your 3 year cost is not $16k but rather $50k, you have to include all $33k of trade equity you’re about to light on fire. How does $1350/mo compare with other Range Rover deals you’ve researched?
Bottom line this is a horrible deal, you’re about to pay over sticker for a Range Rover not to mention putting $33k down is just awful.
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Thanks all for this valid feedback and insight! The appeal of driving new is there but not worth it. My best bet is not drive new as I expected. Go with CPO 2018+ less than 30k miles and low finance rate. That is what as helped me with the positive equity situation I’m in, along with paying the loan off in advance.
Okay. So you want to put 34k down. I can’t begin to say in this scenario how bad an idea this is.
You’re paying an effective 1500/month for an okay optioned sport? Paying 1500 over sticker with god knows of a rate markup. I mean it does have adaptive cruise and black pack. This is firmly X7M50i territory. For a 6cyl Sport, I really wouldn’t pay that much.
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Yeah go with a broker and sell you car to Carvana. Avoid the headache.
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