I leased a car a year ago (before being a frequent visitor of Leasehackr forum ) and now going through my contract, I noticed the high Rent Charge amount of 6747.15. In trying to convert that into APR, that comes up extremely high, so looking for your expertise in helping me understand my deal.
The basics:
2019 Acura MDX
39/10k deal
Money Factor when I leased it was a bit high: 0.00225
I’m in Washington state
MSRP: $58,050
Cap Cost Reduction: $2,000 (from the dealer via incentive)
Gross Cap Cost: $47,000 (and the dealer agreed to add the $2k above towards my “driveoff”)
Total Due at lease signing: $3759.25 ($2k from dealer and $1759.25 from me)
Adjusted Cap Cost: $45595.00
Residual: $31,293.85
Depreciation: $14,301.15
Rent Charge: $6747.15
Total of base payment: $21,048.30
Base Payment: $539.70
Tax: $55.59
Total per month: $595.29
So, the question is - shouldn’t this “rent charge” be much lower, hence driving down my monthly payment? Or are they so high with leases on average? When negotiating, I was driven by the pure cost of the car, as I was able to negotiate it down from $58,050 to $45,000 when they had $9,500 lease cash.
Got it! Spot on indeed! So when thinking about getting an Acura, it is not worth leasing one - buying is the way to go to avoid this MF. I was under the impression I’m getting an excellent deal by getting $9,500 lease cash on top of the negotiated price, plus $2,000 towards my down payment.
You’re actually better off in this case leasing it and then immediately buying out the lease rather than just buying it due to that huge lease incentive
But since this is a 39 months lease, does it matter when bought out? I was thinking about buying it out for cash after the lease is done, since the lease charge is already paid for. Or am I missing something here?